Tuesday, January 12, 2010

Gold Takes a Hit While Dollar Treads Water

I hacked out some gains trading one gold contract today. Not bad considering all my trades were long and gold took quite a hit today. The dollar index threatened to break yesterday's lows during the morning hours, but then firmed up later in the day. In my opinion, the move in gold did not make sense in relation to the move in the dollar. THAT, ladies and gents, is how you know that options expiration is around the corner! The SPDR Gold Trust (GLD) is seeing 2X average daily trading volume, with 461,000 contracts traded and put volume representing about 53 percent of today's activity.

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About Me/Disclaimer/Philosophy

Trading since 1996, it NEVER leaves my mind which is a curse and a blessing. I trade stocks, options, and futures.