Tuesday, November 09, 2010
A bit of downside today as the Dow lost 60 points on average volume. Advance/declines were 3 to 1 negative. I don't think it's the beginning of anything sustained but I've been wrong before. Quite a lot this year by the way. GE lost a touch and I'm leaving in the open order for the January calls. I'll be on vacation for the rest of the week. Gold had a sharp one day reversal today, opening higher and closing lower. Although the futures remained in positive territory, we sold off $20 in the aftermarket. The XAU lost almost 6 after being higher early on. ABX fell 1/3, GG off 1 1/3 and NEM dropped 2 1/8. All had very heavy volume on downside reversals. I'm not sure how long this will last but the charts look bearish after todays action. The dollar had another good day. So the US dollar index has reversed to the upside after breaking the key level of 76. That is not what traders expected. Golds volatility returned today and that is why it is a very tough market to trade at times. I'll still be looking to get long the gold shares in the future though. Mentally I'm doing OK, a bit tired. There will not be any blog postings for the rest of the week as I am taking the rest of the week off. It's my first vacation from the markets since the summer of 2006. I'll post a recap of the rest of this week on Sunday.
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