Friday, January 06, 2012
The employment report came and went as the Dow fell 55 points on light volume. The advance/declines were negative. The jobs report was a bit better than expected but the market did not rally. The overall market was stronger than the Dow once again. We're still overbought and staying there. The summation index continues higher. Where we go next is the question as usual. I'd like to see one more pop to the upside but of course I'm holding calls at the moment. I have no idea what next week will bring. Some economic data and the Fed beige book will be out. GE was up 1/8 on average volume. I placed a stop loss order here for the day but it wasn't hit. The GE calls I own are still in the black. The relative strength of GE continues to be strong but I can't hold on to these options forever. They will probably be sold next week. At least they should be. Overbought both short and medium term here. Gold fell a couple of bucks on the futures as the US dollar continues to move higher. In fact it's a mystery to me why gold hasn't dropped this week with the US dollars strength. The XAU fell 1 7/8. ABX off 1/2, GG down 1 1/8 and NEM dipped 1/8. Volume was light. I'd still like to get some gold share calls but not exactly sure about the timing at this point. Perhaps next week. ABX has been showing the best relative strength but there is no guarantee that continues going forward. Mentally I'm a bit tired, did not sleep enough. Both the stock indices and gold have moved higher this week despite the rise in the US dollar. That is the opposite of what you would expect. I don't know why nor do I know how much longer that abnormal relationship can go on. I'm still going to look for higher prices in the beginning of next week for the stock indexes. That could give me an opportunity to dump the GE calls. That is my game plan as of now, subject to revision over the weekend. It's the first Friday afternoon of the new year and time for a break.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment