Tuesday, November 30, 2010
The Dow continued lower today with a loss of 46 points on good volume. Advance/declines were 2 to 1 negative. We closed the month on a down note. The summation index continues lower. We are moving to oversold territory. I still think this is a sideways consolidation before we move higher. But I could be wrong and usually have been this year. GE lost 14 cents on average volume. I bought some more GE January calls. The calls I had already got cut in half so I doubled my position. This isn't something that I normally do. It may not work out but I decided to take a chance. My thinking is that GE will follow the overall market higher in December and January. We'll see. Gold rose $18 today despite strength again in the US dollar. The XAU gained 2 1/3. ABX up 1 1/3, GG up 1/2 and NEM up 3/4. Volume was average. There is lingering fear about European debt so the dollar and gold are once again viewed as safe havens. Gold has bounced at its 50 day moving average on a daily basis. Perhaps the gold shares are the correct trade here again but I'd like to wait until sometime in December to try that again. Mentally I'm feeling OK. Doubling up on a losing position is not recommended. For some reason though, I feel that this is the time to give it a try. Perhaps it's because there is so much time left on these options to turn profitable. Time will tell. December begins tomorrow and we have the employment numbers on Friday.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment