Wednesday, December 05, 2012
A mixed bag today as the Dow gained 82 points on good volume. The advance/declines were slightly positive. The overall market did not fare as well. The S&P 500 only gained 2 points and the NASDAQ was negative. Still waiting on Fridays jobs numbers. The summation index continues higher but the S&P 500 is stalling at the 50 day moving average. We should get a clear direction of things are Friday. Hopefully at least. GE rallied today, up 1/3 on average volume. I still have no trading ideas here. Gold finished the day just about flat on the futures as the US dollar had a bit of a rise. The XAU got clobbered, down 6 1/2. Most of this was due to FCX. But the gold shares reversed as well. ABX off 3/4, GG and NEM down 1 1/8. Volume was average. No love for the gold shares here and it looks like I will have to abandon the January ABX call trade. It is an over 50% loser at the moment. Unless there is a reversal on the gold shares after the employment report, I'll probably exit this trade. Mentally I'm feeling a bit tired. The over the counter market was weak and that is not a positive going forward. The short term technicals remain in the overbought zone for the stock indices. The gold shares look as though they are breaking down after todays price action. That will not help any gold share call trades and it looks like I'll have to add another loser to the 2012 trading ledger. I'll give this trade until Friday but I'll need to see some type of reversal to stick around. We'll keep an eye on what happens overseas tonight and go from there.
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