Wednesday, January 11, 2012
We continue to grind away with an upward bias as the Dow lost 13 points on average volume. The advance/declines were positive. The overall market was stronger than the Dow. The Fed beige book came and went with nothing new. The technicals remain the same, overbought and staying that way. There is nothing to suggest any changes are forthcoming. Summation index moving higher. We are due for some pullback but I don't expect anything drastic. GE bounced back today on lighter volume. It gained 1/8. I'm looking at the January calls for perhaps a trade before the earnings report but it would be very risky. It is probably wiser to look elsewhere. Perhaps the OEX instead. Gold continued to the upside by $8 on the futures and a touch more in the aftermarket. The US dollar had a strong day but that did not deter gold. The XAU gained 1 1/3. ABX, GG and NEM all had fractional moves to the upside on light volume. It looks like I will have to hold off on buying the gold share calls for now. I need to see some weakness here and it just isn't happening. I think that it is too late to chase this move but I could be wrong. Mentally I'm feeling tired, did not sleep well or enough. The song remains the same for the stock indices. The technicals have been overbought for weeks. Yet we continue higher. Gold and the US dollar have both shown strength in the last week or so and that isn't the normal relationship between the two. No real bad news out of Europe and that has helped us move higher. 2 trading days left in the week before a long holiday weekend.
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