Friday, December 07, 2012
The employment report was better than expected and the Dow rose 81 points today on light volume. The advance/declines were positive. It was a mixed market once again as the NASDAQ finished the session lower. The Dow has been leading things here and that usually isn't a bullish sign. We started the morning off higher and then just drifted for the rest of the day. I really don't see any conviction to this rise in prices recently. But you can't argue with price and we are moving higher. The summation index remains positive as well. GE was up a nickel on very light volume. Still below the 50 day moving average here. Gold was up 3 bucks on the futures and the US dollar was higher today as well. The XAU was up 1 1/2. ABX, GG and NEM all had fractional gains on light volume. I'm still holding the January ABX calls at a loss for now. However I've been waiting for some type of rally in the gold shares and it hasn't happened. Oversold on the gold shares and they are simply moving sideways or lower. I will have to see some type of positive action next week or I will take the loss. Mentally I'm feeling OK. The employment report came and went. It wasn't really a market mover. The bigger cap stocks are in the lead here and more often than not that precedes a decline in the overall stock indexes. Not always but the odds lean that way from my experience. So I would be careful on the long side here. Gold isn't really doing anything and that isn't helping my case with the January ABX calls. 6 weeks left in that trade but it isn't looking like it will be a winner. There's really only a couple of weeks left of regular trading before the holidays take effect. It looks like I am going to have to dump that trade as the final loser of the year. The weekend is here and it's time for a break.
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