Friday, November 18, 2011
Not a very volatile expiration Friday as the Dow gained 25 points in uneventful trading. The advance /declines were positive and the volume was light. The overall market was a bit weaker than the Dow. We're short term oversold here and I would expect a bounce in the beginning of next week. I would also expect light volume next week as well with the Thanksgiving holiday on Thursday. I do not have any OEX trades in the works right now. GE was flat on light volume. The technicals here are oversold. I still would like to purchase the January calls here. Waiting for the premiums to get cheaper. Gold was up $5 today after yesterdays sell off. The US dollar was weaker today. The XAU was off 1 3/4. ABX and GG were off 3/8, while NEM lost 3/4. Volume light here too. We aren't oversold on the daily technicals for the gold shares just yet. However the weekly charts do not look constructive anymore for the bullish cause and patience is in order. Mentally I'm feeling tired, did not sleep well. I'm still a believer in higher prices for the stock indices medium term. We've been basically moving sideways for the past 4 weeks. The summation index is moving lower now and that is something to consider for the downside argument. The light volume lately isn't bullish either. So we'll see. I think staying on the sidelines next week would be a good strategy. It's getting to Friday night now and time for a rest.
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