Monday, January 14, 2013
Running in place it seems as the Dow gained 18 points on light volume. The advance/declines were about even. Sold off early and then came back throughout the trading day. The summation index continues to the upside. I expected some weakness early this week and we may have seen it this morning. I would expect a pretty good move to the upside within the next 2 days. It is expiration week. GE was flat on the day with light volume. My January GE calls are still slightly positive. It looks like I'll be holding them into the earnings report on Friday. We still need to get through the downtrend line from last October. Hasn't happened yet. Gold rose $8 on the futures as the US dollar was flat today. The XAU lost 3/4. ABX, GG and NEM had fractional moves one way or the other on light volume. I'm leaving in the open order for the ABX February calls. I'll need to see some weakness in ABX for this order to be filled. Mentally I'm feeling OK. Still overbought on the stock indices. Regardless, my technical work shows that we will most likely see a pretty good upside move within the next couple of days. I could be wrong. ABX is stalling at its 50 day moving average. A move above this line would be a positive sign. 4 days left in the January option cycle. We'll keep an eye on what transpires overnight and go from there.
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