Friday, December 15, 2006
The Dow was up 28 points on expiration heavy volume. Advance/declines were negative. We are overbought once again, however the market just shrugs it off and continues higher. It is momentum driven. The inflation data as benign. Gold got hammered and lost over $11. However the XAU only lost a couple of points. The gold shares have held up rather well considering golds recent demise. I think it has to do with long only funds simply buying shares in sympathy will the overall strong stock market. At any rate it is interesting and makes for difficult trading decisions there. The dollar has been stronger here lately too but the gold shares are hanging in there. I'm still looking at January for the gold shares but who knows? As for other trading ideas at this point, I don't really have any. I think we will be in holiday mode for the next 2 weeks. It will give me a chance to regroup and get ready for next year. Mentally I'm just hanging around. The trading year is essentially over and I ended up with a small loss. I'll have to review the year and try and do better in 2007...
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