Friday, December 03, 2010
The Dow was lower for most of the day but made a final hour comeback to finish the day with a gain of 19 points. Advance/declines were positive and the volume was light. The employment numbers were much worse than expected but the market held up rather well. When the market ignores bad news it usually means higher prices. We'll have to see about that. Getting overbought now so a pullback wouldn't be out of the question. Summation index is turning. GE gained a few cents after being lower early on. The January calls that I have are still positive. It was a good week for GE and we'll see if it can build on that going forward. I'm still a believer that it will. Gold had a stellar day as the dollar got whacked on the employment news. The precious metal gained over $15 and added more in the aftermarket. The XAU rose 4 3/8. ABX up 3/4, GG up 1/2 and NEM up 1 7/8. Volume was lighter than it has been. ABX and GG look as though they have put in doji tops on the daily candlestick charts. The gold shares are overbought here but we just set a new high in the price of gold itself. Money continues to flock to gold. That is a trend that I expect to continue. That is why I would like to get some January gold share calls if we get a pullback from here. May not happen though. Mentally I'm doing OK. It was a very good week for the GE January call position and that gives me an optimistic view for how that trade may pan out. Plenty of time to go for that trade yet. The overall market seems like it wants to go higher. If we solidly get above 1220 on the S&P 500, I think the rally will continue. For now, it's Friday afternoon and time for a break.
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