General Electric (GE) closed at $15.75. GE forecasts flat revenue and margin growth in 2010. GE January option implied volatility of 33 is below its 26-week average of 39, according to Track Data, suggesting decreasing price movement.

IVX Volatility Monitor: PHLX Oil Service Index (OSX) was down 2.6% to 30.9, NASDAQ (NDX) was down 0.2% to 20, Gold and Silver (XAU) dropped 1.5% to 41, according to IVolatility.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Mining stocks don't always march in lockstep with the price of gold. Among other things, the shares can be affected by money flowing into and out of the overall equity market, as well as changes in company or sector operating fundamentals and investor outlooks.

That said, the shares and the precious metal do tend to loosely track one another; historically, at least, the relationship between the two tends not to move too far out of line. When it happens, however, it can signal a short-term trading opportunity.

Over the past few weeks, mining shares have come under considerable pressure in relation to the metal. In fact, the ratio of the Philadelphia Stock Exchange Gold and Silver Index (XAU) to spot gold has fallen to a level that has, in recent years at least, been a staging point for a relative rebound in the shares.

While it is possible that continuing turbulence in equity markets could produce a different result this time around, the pattern of the past five years suggests it is a good time to go long the shares and sell (or sell-short) the metal.

One way to play it using exchange-traded funds: buy the Market Vectors Gold Miners ETF (AMEX: GDX) and sell the streetTRACKS Gold Trust ETF (AMEX: GLD).

Michael Panzner is a 25-year veteran of the global stock, bond, and currency markets and the author of Financial Armageddon: Protecting Your Future from Four Impending Catastrophes and The New Laws of the Stock Market Jungle.

Over the last six weeks, the Philadelphia Gold and Silver Index ("XAU") has lost an eye-popping 16.2% while spot gold has slipped by 2.7%.

The last time the XAU fared as poorly relative to the price of the yellow metal was in August, after which the shares staged a notable rebound.

Indeed, with the benchmark index of precious metals mining shares nearing short-term technical support, the stage seems set for a replay of that summer reversal of fortunes.

Depending on your risk profile, it could be a good time to buy mining shares -- or, perhaps, the Market Vectors Gold Miners ETF (AMEX: GDX) -- and sell (or sell short) the underlying metal -- or a substitute such as the streetTRACKS Gold Trust ETF (AMEX: GLD).

Michael Panzner is a 25-year veteran of the global stock, bond, and currency markets and the author of Financial Armageddon: Protecting Your Future from Four Impending Catastrophes and The New Laws of the Stock Market Jungle.