Monday, December 31, 2012
It was quite a final day for 2012 as the Dow rallied 166 points on better volume than we have seen lately. The advance/declines were 6 to 1 positive. The tax deal is finally coming together but it hasn't been finalized as of yet. Investors are front running the expected beginning of the year positive money flows. I did want to get some January OEX calls but the premiums were so inflated that I stepped aside there. Today stops the down trend for now but the volatility has definitely picked up. We should rally when the markets reopen on Wednesday. What happens after that is the main question. GE had a huge move, up 55 cents on good volume. We should be able to build on that going forward as well. Gold was up as well. The precious metal futures rose almost $20. The US dollar was little changed on the day again. The XAU gained 5 points. ABX, GG and NEM were all up at least a buck on average volume. I did place an order during the day for some January ABX calls again but it wasn't filled. I believe that money will make its way into the gold shares at the beginning of next year as well. I may try the ABX calls again on Wednesday if we get some weakness early. We'll see. I haven't done too well with this trade lately. Mentally I'm feeling OK. We are getting the expected pop in the stock indexes with the resolution to the tax situation. The over the counter stocks are moving even better to the upside and that is a positive going forward. The stock indices were also short term oversold, so a move higher is no surprise. Gold had a decent day but we will have to see if there is any follow through to the upside. Gold has been dead money for quite a while. I do think that I will try the January ABX calls again though. It's a holiday tomorrow and perhaps the tax deal will be done by the open on Wednesday. Most foreign markets are closed tonight as well. So we'll take a day off and keep an eye on the news out of Washington. A Happy and Prosperous Trading New Year to all.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment