Friday, November 21, 2014
A jolt higher in the morning and then a down to sideways drift. The Dow ended the day with a gain of 91 points on expiration heavy volume. The advance/declines were 2 to 1 positive. There is nothing in the way of higher prices. We'll get a holiday week next week and that is generally positive. Declines will continue to be bought. The trend remains up and should be for quite some time in my opinion. GE was up 1/8 and the volume was average. I still like calls here but will need to see some decline for purchase. Otherwise it's a wait and see game for GE. Gold was up $6 on the futures despite a good day for the US dollar. The XAU was up 3/4. ABX, GG and NEM had fractional gains one way or the other on lighter volume. The recent rise in the gold shares could be over here and perhaps I have overextended my stay with the ABX January calls. Overbought on some of the short term technical indicators for the gold shares. Mentally I'm feeling OK. What more can I say about the stock indices? There are no sellers, only buyers. We are in the seasonal positive zone for stocks and will be for quite some time. New all time highs are a daily occurrence. Calls are the way to go for option trading. Daily declines are immediately purchased. You cannot fight the positive price action. Gold has had a bounce but it certainly hasn't been robust. I think the most we can hope for here is a sideways range before continuing higher. The only certainty is that I don't know. The gold shares have had a decent couple of weeks but it does look like that may be out of steam. There should be some more end of the year tax loss selling in this sector as well. My ABX January calls are still showing a good profit. I will have to seriously consider whether or not to sell them over the weekend. I'll also be checking the charts to try and find some new ideas. For now it's Friday afternoon and time for a break.
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