Thursday, December 16, 2010
Back to the upside as the Dow gained 41 points on average volume. I don't think that is all the decline we are going to get here but it puts an end to trying an OEX call trade. Advance/declines were 2 to 1 positive. Expiration tomorrow and then we'll move into holiday and end of the year mode. Things will slow down and trading will be thin. GE gained 28 cents today on average volume. My GE January calls are hanging in there. I'll be holding these until next year at this point. Gold fell $15 and the XAU dropped 2 7/8. The dollar didn't do much today. ABX and GG were both off 7/8, while NEM fell 2/3. Volume was good. The gold shares were lower but came back late. The gold shares have held up better than the metal itself. That's usually a bullish sign. I'll be keeping an eye on the January calls for the next trade. We are moving to oversold territory on the gold shares. I expect strength in these issues at the beginning of next year. Of course, I could be wrong. Mentally I'm doing OK. Not much else to do here but watch the expiration tomorrow. I do not expect any dramatic moves up or down in the equity markets in the next 2 weeks. It should be sideways action with perhaps a Santa Claus rally moving us a bit higher. Barring any unforeseen events, that's what I expect.
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