Action, Such as It Is, Is All About Gold and the Dollar

 | Dec 29, 2016 | 10:45 AM EST
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The market is acting like many folks have decided to close up shop and call it a year. Volume is pathetic, the indices are barely moving and if you are looking for pockets of trading action, you won't find much. Breadth is positive, but we don't even have 100 stocks on the new 12-month high list.

The most interesting group on my radar right now is precious metals. There is a decent bounce in gold and silver, which is a function of a weaker dollar and the end of tax loss selling. Gold (GLD) is way off its summer highs, but traders are likely looking at how gold acted back in January and February, after similar poor action a year ago.

Precious metals are driven primarily by currencies, so if you want to trade them keep on an eye on the PowerShares DB US Dollar Index Bullish ETF (UUP) . The inverse correlation with GLD is quite high. Ultra Gold ETFs NUGT and JNUG are leading today.

I was hoping to find some quick trades today, but so far it is extremely slow and random on my screens. It is an easy environment in which to force things, so I'm working hard not to do that.

Keep in mind that this is a very ripe environment for program trading. It is very thin and the computers can move things around quickly if they go to work. Big swings on the last day or two of trading are not unusual.

Precious metals like Alamos Gold (AGI) , McEwen Mining (MUX) , Siler Wheaton (SLW) and Richmont Mines (RIC) are the focus today, but the thinness and volatility undercuts short-term trading.

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Bitcoin. Plunged below $8,000 over the weekend.



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