Monday, September 17, 2012
A weekend hangover Monday as the Dow fell 40 points on light volume. The advance/declines were 2 to 1 negative. We made a bit of a comeback in the final hour. The market still has the feel of wanting higher prices although we remain overbought on a short term basis. Expiration week usually has a positive bias so we'll have to see if it holds true for September. Some economic data out this week. However all the news from the Fed and the ECB is already out. We will have to wait and see where the next catalyst comes from. GE was off a touch and volume was heavy. I'm still considering the October calls here on some type of pullback. Not yet though. Gold was off a couple of bucks on the futures and $10 more in the aftermarket. The US dollar was just a bit higher today. The XAU was down 1/3. ABX and NEM had fractional losses, while GG was flat. Volume was average. Gold really needs to take a rest as it has remained overbought for a couple of weeks. I will attempt the gold share calls again on a pullback but must try and remain patient for now. Mentally I'm feeling OK. 4 days left in the September options and it probably wouldn't be wise to try anything there. I think that I will have to simply let this week go by trading wise. But we'll see. Perhaps if gold takes a rest I can make a trade there. I'm leaning towards a wait and see attitude for now.
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