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Thursday, February 02, 2012

The expected holding pattern before the employment report occurred today as the Dow fell 11 points on average volume. The advance/declines were positive. The overall market was stronger than the Dow. Still overbought on the stock indices. So we'll get tomorrows number and take it from there. GE was flat today on light volume. The Bollinger bands continue to tighten here, so expect a big move one way or the other in GE soon. I'm still interested in the March calls here but in no hurry. Gold continues to move higher, up about $10 on the futures and a touch more in the aftermarket. The US dollar was a bit higher today but really was in a holding pattern waiting for tomorrows employment report. The XAU was up 2 points. ABX gained 1/2, while GG and NEM each rose over a buck. Volume was light. I placed an order in for the ABX February calls again. Once again the volume on the February ABX 50 calls was heavy. The open interest there expanded again yesterday. I'd like to own some of these if the price is right because there is obviously something going on here. What? I don't know. Mentally I'm feeling OK. So we'll see what the employment report brings and the markets reaction to it. We've been overbought for so long on the stock indices that you'd just expect the markets to continue to churn higher regardless of what the employment report is. Gold is a mirror of the stock indexes overbought and staying there condition. We'll see what tomorrow brings.

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