Notes for Thursday / Friday 1/6/11 1/7/11

Submitted by: Iseedeadpeople

1/7/11

We should see downward pressure continue for GLD / SLV it appears that we may have a short term bottoming pattern and then a bounce for gold up to 13900 then we could see the downward resumption with a target of roughly 13400. 13400 should flush out weak hands where we can then possibly play to the move higher.

SLV has seen decent sell volume in past couple days and should follow the same pattern as gold.

US Dollar index is in an uptrend and a move up to 84500 would not be un-realistic. If this does occur expect markets S&P / equities to pull back fairly sharply. GLD and SLV should also pull back sharply as well. Yesterdays unusual options volume standout was the KBE (bank index etf) with 66k call options traded and 2k put options coming in at 9x the average volume for this etf. Someone is betting large on large move north in this ETF or is extremely short banks and having to stop the bleeding with the drift up we have had in the past few weeks. No actionable information here but it will be interesting to see how things shake out on this. I will be keeping an eye on it. Keep well and talk soon.

Unusual ETF Options Volume For Thursday 1/6/11

Symbol	OptVolume	Puts	Calls	Mult	AvgDailyVol	OpenInt	OIMult	Events	Amex%	Bats%	Box%	Cboe%	C2%	Ise%	Nsdq%	Pcx%	Phlx%
XLF	475,127	223,795	251,332	2	205,210	5,726,711	0.08		22	0	1	3	0	8	0	31	34
VXX	85,561	59,095	26,466	2	38,713	972,648	0.09	52WeekLow	4	1	8	65	0	8	3	5	6
KBE	68,679	2,650	66,029	9	7,651	148,840	0.46		0	0	0	0	0	0	0	100	0
FXE	28,318	25,099	3,219	3	9,046	282,403	0.10		4	0	4	17	0	10	7	37	20
XLB	20,079	12,995	7,084	2	9,762	613,766	0.03		14	0	7	28	0	34	1	7	7
FXY	8,530	6,318	2,212	3	2,960	117,924	0.07		12	0	0	29	0	15	0	24	20
IWO	7,535	7,523	12	3	2,620	35,985	0.21		100	0	0	0	0	0	0	0	0
QLD	5,923	1,965	3,958	3	2,082	40,729	0.15	52WeekHigh	2	0	2	64	0	26	0	4	2
MOO	5,010	3,993	1,017	4	1,133	23,517	0.21	52WeekHigh	16	0	0	21	0	6	0	1	56