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Monday, December 22, 2014

More of the same as the Dow gained 154 points on average volume.  The advance/declines were positive.  The summation index continues higher.  At this rate, there won't be any chance to buy some OEX January calls.  The reverse head and shoulders patterns will play out and the rally will simply extend itself.  New all time highs are in the near future.  There are no reasons for selling.  Just getting to short term overbought on the major stock indices.  GE was up a few cents and the volume was lighter than lately.  My GE March calls are slightly in the black.  I'm still guessing this trade will work out but the entry could have been a lot better.  Gold took a hit today as the futures fell around $15 and more in the aftermarket.  The US dollar was higher on the day.  The XAU dropped 4 points.  ABX off 1/2, while GG and NEM shed 7/8.  Volume was good to the downside.  You would think that these issues would be sold out by now but the dumping continues.  Not so sure about trying the GDX January calls.  It's probably best to hold off until the technical indicators are completely oversold.  Not there yet.  USO was off a point.  I'm still considering the February calls here but USO has been oversold and staying there.  Mentally I'm feeling OK.  It's a holiday week with some shortened sessions coming up.  I think the prudent path will be to let this week go by.  My trading has been pitiful for most of the year anyway.  Looking for a fresh start to the new year is the way to go for me at this juncture.  My trading account lost almost 30% this year.  If not for being short during the drop in October, it would have been worse.  But you've got to keep moving on in this game.  Hopefully the stop loss orders will put a dent in the losing trades but the execution so far hasn't been up to snuff.  It's always a battle with the markets and that includes the players behind the scenes as well.  Plus now the fight includes computers.  However the rewards for those good enough to play the game far outweigh the obstacles.  It can be done.  The only question is are you good enough to do it?  We've seen a steady decline in the commodities markets.  Over supply and a decent rise in the dollar are probably part of the reasons.  This won't last forever although it's hard to make that case right now.  There will be opportunities.  The US stock markets continue to climb.  I expect that trend to continue.  Taking advantage of it will be the key.  We'll get most of this weeks economic data out tomorrow and that should get things moving.  After that I expect things to get pretty slow until next week.  We'll watch the foreign markets overnight and take it from there.

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