Monday, December 17, 2012
A positive start to option expiration week as the Dow gained 100 points on light volume. The advance/declines were 2 to 1 positive. This should send the summation index higher. No technical reason for the rally. The tax problem in Washington looks like it is almost being solved. Of course that could change tomorrow but some kind of deal will be reached. We will see if todays action has some legs. GE was up 1/3. Short term overbought here. Gold and the US dollar both didn't do much today. The XAU was up 1/3. ABX, GG and NEM all had fractional gains on light volume. Unless we get some type of rally in ABX, I will have to dump the January calls that I own at a loss. That is the most likely outcome. Mentally I'm feeling OK. The stock indices continue higher and are getting short term overbought again. We have a holiday week next week. All of the major trading for the year will be done in the next 4 days. Perhaps we will run things up into the expiration but that is just a guess. Gold at around $1700 remains dead money and I don't see a catalyst in the near future. We'll keep an eye on the action overseas and go from there.
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