Thursday, December 11, 2014
Volatility is back as the Dow gained 63 points on heavy volume. The advance/declines were positive. The summation index is still trending lower. The Dow did have a 200 point gain at some time early in the session. Can't say I know exactly what is taking place here. But I'm sticking with the thesis that this sets things up for a rally into the new year. I'm also a believer of the reverse head and shoulders patterns being formed on some of the major stock indices daily charts. GE was up 1/8 and the volume was good. The GE March calls that I own are back to break even. Plenty of time for this trade to work itself out. Gold was off $3 on the futures as the US dollar bounced back. The XAU dropped another point. ABX and GG had fractional losses, while NEM had a fractional gain. Volume was light. Sideways is the most that we can hope for the gold shares here. The short term technical indicators are neither overbought or oversold. Mentally I'm feeling tired. Cannot shake this cold/flu. Declines can still be purchased in my opinion. I'm still looking for a good start to the new year for stocks. Six days to go in the December option cycle. I have no index option trades in mind for the S&P at the moment. USO continues to drop. I'm looking but not buying just yet. Oversold and staying there for this issue and that is dangerous. The CRB continues to drop as well. Gold continues to hang in there for now. But I don't see any huge rallies coming. We'll watch the overnight action and finish out the week tomorrow.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment