Watch and wait.

Not a pretty picture

Happy New Year to you all and may it be a prosperous one.

I have completely ignored the market over Christmas. barring a couple of sneak peeks and a bit of a groan as precious metals dig a hole in my portfolio. This is where I need to focus my attention so that I have a better idea of what to do next.

Which way will it go?

Dow is back up to the resistance level and sitting there. It is sitting high so the big question is 'will it break out?' I've no answer to that so I sit and wait with my ducks lined up.

Gold is ugly. It has broken all nearby support levels so its current rebound is unconvincing. The next support level now is around 1480 almost 7% below where we are now. Resistance at 1600 is frighteningly close. Logic dictates: clear the decks and that is what I might do sometime today.

Silver not looking too bad

Silver is a bit more hopeful. It has bounced of a strong support area around 26.00 and has almost 5% to go before resistance. So good reason to hold or even add. Again I'll leave the decision till later.

A bit of euphoria hit the UK market at the open pushing it up over 100 points. Even after the pull-back it is still strong.

So I am watching and waiting for a sign to show what the Christmas break has done to the market's mood.