Wednesday, December 15, 2010
A down day in the markets? Can it really happen? The Dow lost 19 points today on average volume. Advance/declines were 2 to 1 negative. The overall market was weaker than the Dow. I do not expect this decline to last. I did place an overnight order for some December OEX calls. I am leaving the order open for tomorrow. This is a risky play with only 2 days left. However I do believe that we will see some decent upside before the close on Friday. I could be wrong and have been for much of the year. So we'll see. I may cancel the order tomorrow morning as well. GE lost 20 cents on good volume. My GE calls lost some ground but are still profitable. We are not near the target price that I have for GE prior to the January expiration. I'll adjust my expectations as we move forward in time. Gold lost $18 today and then some in the aftermarket. The XAU fell 3 7/8. ABX down 1/2, GG down 1/3 and NEM down 1 1/8. Volume was light. The dollar had a strong day and gave a reason to dump gold. The daily dollar candlestick chart is looking bullish. I am still looking to purchase some gold share calls before the new year. This could be the beginning of a pullback that I've been waiting for. Mentally I'm still feeling a bit tired. 2 days to go on the December options and I'm considering an OEX trade? This idea is really more of a feel for what is going on in the markets lately. Overbought markets tend to stay that way for much longer than anyone anticipates. That is what I think we're in the midst of. Declines will be aggressively purchased. So we'll see what happens.
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