Thursday, December 22, 2011
Moving to the upside as the Dow gained 62 points on light volume. The advance/declines were 3 to 1 positive. The summation index is now moving back to the upside. It looks as though the Santa Claus rally has begun. Of course it could all turn around tomorrow if something negative comes out of Europe. We are right at resistance lines on the major stock indices, below them on the small stocks. We would have to get through them on good volume to continue higher in my opinion. I'm still a believer in higher stock prices going forward. GE continues to amaze as it gained 3/8 today on good volume. We have reached what was my target at $18. I'm going to continue to hold onto the calls into next year as I originally planned. GE is very overextended here and some type of pullback would be helpful for continuing to hold on. However with the price moving higher on good volume, the trend is clearly up. The GE calls I have are still in the black and continue to gain ground. Gold lost a few bucks in the futures and 5 more in the aftermarket. The US dollar bounced around and finished the day about where it started. The XAU fell 1 1/4. ABX and GG lost 1/3 but where lower during the session. NEM dropped 1 7/8. Volume was light. I'm still looking at the January gold share calls but that is about it. I don't plan on attempting this trade until a decent signal presents itself. That is the plan. The gold shares are pretty oversold and staying that way. Mentally I'm feeling tired once again as I did not sleep well. Tomorrow is a Friday before a long holiday weekend and I would not expect any big moves. It should be a slow affair. Next week should be about the same. Unless something occurs in Europe. If that is the case, anything could happen.
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