Monday, December 12, 2011
Today the market didn't like what it heard from Europe and we were down 162 points on the Dow. The advance/declines were 4 to 1 negative and the volume was pretty light. We were down over 200 for much of the day. I still think we will see higher prices going forward. I also think we will see a solid up day this week and sooner rather than later. That is what the technicals look like to me. I could be wrong. We've got the Fed this week, plenty of economic data and option expiration. Things could get volatile however the light volume today was interesting but it may or may not mean anything. I'm thinking that there weren't a lot of sellers. GE lost 3/8 on lighter than lately volume. My GE calls are still in the black but lost some ground today. I'm still holding them and plan to into next year. Gold was the story of the day as it got pummeled on the sharply higher US dollar. The yellow metal fell about 50 bucks on the futures but made a slight comeback in the aftermarket. The XAU declined 6 7/8 but we were lower. ABX and GG off around 2 bucks and NEM dropped 1 2/3. We were lower here as well, with volume average. I placed an overnight order in for some January ABX calls and it wasn't filled. I'm leaving the order good until canceled. Not sure this is the right trade to do but I'm willing to take the risk at the price that I want. There was some interesting volume on some of the ABX January calls. Also getting oversold now on the gold shares. We'll see. Mentally I'm feeling OK, slept good enough. We started the week to the downside on the stock indices and we'll see if we get any follow through. It still remains a headline driven environment. Gold took a huge dive as well as it looks like the US dollar could move to new recent highs. We are right on the cusp. We'll see what Europe does overnight and go from there.
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