Monday, December 10, 2012
Still a meandering market as the Dow gained 14 points today on light volume. The advance/declines were positive. Waiting for some kind of catalyst one way or the other. The Fed meets this week and maybe they can get things going. However the market seems to be on hold until Washington figures out the tax situation. This could go on until the end of the month. Technically the stock indices are short term overbought. The summation index does continue higher. GE lost a few cents on the trading day and the volume was very light. Getting to the 50 day moving average here. Gold was up $8 on the futures as the US dollar was weaker today. The XAU rose a couple points. ABX, GG and NEM all had fractional gains on light volume. Perhaps we'll see something out of the Fed to get gold moving to the upside. The technicals for the gold shares are short term oversold. Mentally I'm feeling OK. Not the most dynamic trading environment with just less than 2 weeks to go in the December option cycle. However the rally that started in mid-November remains intact. Gold is perhaps putting in a short term double bottom here but we will need to see the volume pick up to the upside for this to be true. I'm still holding my January ABX calls at a loss. We'll keep an eye on the overseas action tonight and go from there.
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