The Dow finished the day practically unchanged on holiday light volume. The advance/declines were negative. The small stocks were slightly higher but the S&P 500 showed a loss. The price of oil took center stage as it continued its collapse in a big way after the recent OPEC meeting. I am thinking of getting some USO calls for February. USO is a widely traded fund used as a proxy for the price of oil. Oil is blown out to the downside and some type of recovery will occur. As always the timing is the key question. The overall stock market remains short term overbought. GE was off over 1/3 today on average volume. Could this be a sign of things to come? No new news here and the short term up trend line has now been broken. Perhaps I'll get a chance for the March calls here. Gold followed oil lower today as the futures fell $15 to add to the $10 they dropped yesterday. The US dollar had another good session. The gold shares got clobbered as the XAU fell 6 points. ABX and NEM lost over a buck, while GG dumped 1 1/4. Volume was very good for a holiday shortened session. The gold shares are rolling over here. The time to sell my ABX January calls was earlier this week. They are still showing a profit but it has been more than cut in half. Commodity prices are crumbling. Mentally I'm feeling OK. It was supposed to be a quiet holiday session but the oil drop changed things. You really can never tell what will happen in this game. I think that the oil price is overblown to the downside here but it isn't something that I usually trade. That said, opportunity appears in times of crisis. Or so they say. I'll consider the USO trade over the weekend. The trend in stocks remains up. The summation index continues higher. I don't have any OEX trades in mind at the moment. Gold and the gold shares have rolled over. Perhaps the vote in Switzerland would turn things around but that is a long shot and probably won't happen. I will seriously have to consider exiting the ABX January call trade on Monday. I suppose a small profit is better than a loss. But it's another thing to look at over the weekend. It's Friday and time to take a break.
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