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Tuesday, July 05, 2011

It was a relatively quiet post holiday session as the Dow lost 14 points on light volume. The advance/declines were about even. It was a mixed bag as the NASDAQ showed a slight gain. We're still overbought here but the market has the feel as though it wants to go higher. However some type of pause is due. GE was off a bit on light volume. Still below the downtrend line from February/May. Gold was up $16 after being up $10 yesterday. The XAU gained 5 points. ABX up 1 1/8, GG rose 1 7/8 and NEM gained 2/3. Volume was light. It looks like the RSI positive divergence for ABX is working. I have no explanation for the recent jump in gold. We were oversold but it has been quite a 2 day move. The US dollar was higher today as well. Something is going on but I certainly don't know what. Mentally I'm doing OK. A nice long weekend in the summer is always nice. 8 days left on the July option cycle. I don't really have any trades in mind at the moment. The employment report is out on Friday and that should be the next trigger for some type of sustained move. That's my guess at the moment.

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