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Tuesday, December 17, 2013

Some weakness ahead of the Fed as the Dow fell 9 points on light volume.  The advance/declines were slightly negative.  I don't expect any changes from the Fed but who knows?  I could be wrong.  The summation index is still heading lower.  I'm still of the opinion that the Christmas rally will begin at any time now.  But anything goes if we get any surprises from Big Ben.  Technically we're more oversold than overbought for the short term.  Things will all get sorted out after tomorrow.  GE was flat on the day and the volume was light.  Still a wait and see attitude for me towards GE.  Gold fell $14 on the futures today.  The US dollar finished the session little changed again.  The XAU was off 1/3.  ABX, GG and NEM had slight fractional moves one way or the other on light volume.  It is a waiting game here as well.  As long as gold holds $1220 it should be OK.  If we break that level another decline would be in the works.  Mentally I'm feeling OK.  3 days in the December option cycle and a Fed announcement tomorrow.  Whatever volatility we get should happen in the next 3 days.  Then it's holiday mode for a week or so.  So taking on any trades now has more risk than usual I think.  Plus there will be the time decay of a week of light trading.  I think that I'll be on the sidelines until after Christmas.  Gold looks like it is trying to form a base but there is no real buying interest that I can see except for ABX perhaps.  I'm trying to be patient here and have been so far.  We'll see what tomorrow brings.

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