Tuesday, December 21, 2010
Continuing higher in light volume trading as the Dow gained 55 points today. Advance/declines were over 2 to 1 positive. This should move the summation index to point to the upside. It's hard to trust light volume rallies but it is a holiday week. Staying overbought for longer than normal. That usually never ends well. We'll ride it out for now. GE gained 20 cents and my January calls moved up a bit. GE is very overbought as well. I'm still waiting for next year to sell these, hopefully at a profit. We are not at the target that I have in mind. Subject to adjustment as we move forward of course. Gold gained a couple of bucks and the XAU was up 1/3. ABX, GG and NEM were flat to fractional losers on very light volume. We're oversold on the gold shares and I'm looking at the GG January calls for the next trade. I'm going to try and wait for next week to buy them considering the thinly traded markets at the moment. We'll see. There's only 2 trading days left in this week. Mentally I'm feeling good. I already am in what looks to be a profitable GE for the start of the new year and I have a gold share idea waiting in the wings. However we all know the market will do what it wants. That's what makes the game so interesting as well as difficult. I don't expect much movement for the rest of this week.
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