Monday, December 09, 2013
Slight upside today as the Dow gained 5 points on light volume. The advance/declines were just about even. Not much to report about todays session. The summation index is still heading down. I'm expecting weakness in the coming days and I am not looking for a break out to new highs yet. The volume on the rally is light. I do not trust light volume rallies. GE was up another 1/4. The volume was nothing special. If GE is a proxy for the overall market then we should see higher overall prices moving forward. That remains to be seen. Gold was up $5 on the futures with a slightly weaker US dollar. Gold continued to rally in the aftermarket. There was a lot of chatter over the weekend about gold being sold out along with a possible double bottom being put in. The XAU rose 1 2/3. ABX and NEM were up over 1/2, while GG was flat. Volume was light. I did place another open order for the January GG calls. We'll see if it gets filled this time around. I'm thinking that we'll see more sideways price action for gold near term. Mentally I'm feeling OK. Not much economic data to go on this week. It could be a quiet time for the stock indexes. That doesn't do much for trading options. However sometimes you have to be patient. The fundamentals for gold haven't changed, so I really don't see any big rally coming up anytime soon. Perhaps the gold share call trade isn't the best idea for this time. I'll reconsider it overnight. We'll keep an eye on the overseas action and take it from there.
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