This Stock Blog gives insight on daily stock market trading as well as stock trading analysis. We also list stocks to buy, top stocks, stock picks, and the best stocks to invest in 2013/2014.
Tuesday, 27 December 2011
A slow holiday trading session as the Dow lost 2 points on very light volume. The advance/declines were about even. I'd expect more of the same for the rest of the week as we are in holiday mode. I think there will be a downside bias, since we are short term overbought. I do not expect a lot of news out of Europe or anywhere else this week. GE dropped about 1/4 on light volume. My GE calls are still in the black. I would expect some weakness here as well and that would relieve the overbought condition that we're in for GE. I still will be holding this trade into the new year. Gold fell $10 on the futures today and the US dollar dropped a touch. The XAU lost 2 1/2. ABX and NEM fell 1/2, while GG shed 2/3. Volume extremely light. I am looking at the gold share calls again for January. Oversold and staying there for the gold shares. When the Gold/XAU ratio hits the buy point, I will give this trade a shot. Mentally I'm feeling OK, it was a nice long break from the trading action. Not much to do but get ready for next year at this point. I'll be keeping an eye on things but I don't expect any surprises this week. I expect some drift lower, that's about it.
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