Thursday, January 12, 2012
Still chugging ahead as the Dow gained 21 points on what now passes for average volume. Nothing out there yet to derail this train. The advance/declines were positive. Volatility has disappeared as the days follow the same lower in the morning, higher in the afternoon routine. Sooner or later we'll pop one way or the other. Overbought, staying there, summation index moving higher. I've been writing the same thing for quite a while. GE was up a nickel on lighter volume. Will I try the January calls here before the earnings next Friday? That's about all there is left to do here. It's probably wiser to pass but that probably won't stop me. Gold was up another $8 today on the futures as the US dollar was lower. The XAU gained 2 points and is up against its 50 day moving average on the daily charts. ABX was flat, while GG and NEM rose 3/4. Volume was average for lately. I'll try the gold share calls if we get some weakness. They've already risen pretty good from the recent lows. Mentally I'm doing OK but could have slept better. We've got Friday ahead of a long weekend coming up tomorrow. I don't foresee any changes from the recent grind away higher pattern. I might look at the OEX puts here since we have been overbought for days. It would have to be a very short duration trade though because the trend is definitely up. I'll ponder things overnight and take it from there.
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