Gold (GLD) & Silver (SLV) ETF

PIIGS Woes Help Dollar

Concerns about the fiscal position of European countries are giving the dollar a lift this morning, while causing a selloff in commodities. >>READ

ECB hold interest rates @ 1% >>READ
Silver Wheaton (SLW) is getting sold off hard today...suggest buying or adding as Euro/Dollar near downside targets. Gold has broken undeer $1075 support $1040 next, US Dollar is nearing 80, upside resistance level 81.

Banks Attractive

A few weeks ago I suggested buying JPMorgan (JPM) on the fear being created by the Obama administration..."Buy the Fear".  Charts are attractive... BUY! read previous post

Key Levels On Dollar, Euro, Gold & Silver

Improving Economy

ISM and GDP numbers are improving as the chart below indicates.
Yesterday's ISM report along with last Friday's similarly bullish GDP number and encouraging ISM report and the ISM non-manufacturing survey due out tomorrow...should be bullish. The big economic data point will be this Friday's monthly Jobs Report.

December Low Indicator...Remain Cautious

When the Dow closes below its December closing low in the first quarter, it is frequently an excellent warning sign. The December Low Indicator was originated by Lucien Hooper, a Forbes columnist and Wall Street analyst back in the 1970s. Hooper dismissed the importance of January and January's first week as reliable indicators. He noted that the trend could be random or even manipulated during a holiday-shortened week. Instead, said Hooper, “Pay much more attention to the December low. If that low is violated during the first quarter of the New Year, watch out!”

16 of the 30 occurrences were followed by gains for the rest of the year after the low for the year was reached. Hooper’s “Watch Out” warning was absolutely correct. All but one of the instances since 1952 experienced further declines, as the Dow fell an additional 10.9% on average when December's low was breached in Q1. Only three significant drops occurred when December’s low was not breached in Q1 (1974, 1981, and 1987).
Click to see charts

The Value Line Arithmetic Index ($VLE) shows how the small/mid cap indexes have so far held up...lets see what the next 2 months bring!

WATCH THE DOLLAR

Key levels being tested on the Dollar, Gold & Oil today as well as the S&P500.

$SPX Broke Support...Downside Objective

Technical damage on the $SPX chart as the 1080/1085 support has broken. Next big area of support is the 19.1% Fibonacci Retracement levels around 1045/1050 just about a 10% correction.

Crude Oil Stocks Attractive

S&P500 Retracement Levels

Dollar -Gold -Silver: Update

The fundamentals for the dollar($USD) remain bearish. Once the dollar’s consolidation runs its course, the trend lower should resume. A break over 79 should see 81 tested.

Genco Shipping (GNK) Update

Twelve-days ago I suggested for those using covered calls to rollup & out on the GNK call trade. link
Genco Shipping (GNK) On this covered call the Jan $25 GNK-AE sold on Oct 21 for $1.70, suggest BUYING it back to close position for $0.50 and rolling up and out to the [SELL] April $28 Call ticker GNK-DV for $1.65 bid. The original cost for GNK was $22.90 - $1.70 + $0.50 - $1.65= $20.05
With GNK trading down under $22, the April $28 call is @ $0.35 ask, suggest buying back to close; open position.That would place the GNK cost basis at $20.40. Looking to resell a call as GNK trends to higher levels.