Monday, December 27, 2010
A very slow back to work Monday as the Dow lost 18 points on light volume. Advance/declines were positive. A major East coast snow storm hampered the already sparse trading environment. It will be a thin trading scenario throughout the week. GE was up 15 cents and that helped my January calls. Overbought here though and it needs to take a rest or move sideways in order to move higher at the beginning of next year. We'll see. Gold gained a couple of bucks and the XAU fell 3/4. The US dollar was weaker today. ABX and NEM were flat on the day, while GG lost 1/4. Volume was very light here as well. I did place an order for some January GG calls overnight and it got filled this morning. We are oversold on the gold shares however that doesn't mean we can't get more oversold. I have been looking at this trade and I was going to give it a shot when it hit my price target on the options. I'm looking for money to flow into these issues at the beginning of the year. I could be wrong and have been a lot this past year. But I'm moving on. I do not plan on holding these options deep into January unless gold itself breaks out. Mentally I'm feeling good after a nice break from the market action. I'm going to hold my 2 positions into next year so it is a matter of watching and waiting for next week. The GE calls are solidly in the black and the GG calls are where I bought them. I'm looking for a good start to the new year.
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