Wednesday, June 20, 2012
We got the expected Fed announcement out of the way as the markets gyrated like a ping pong ball in a tornado. The Fed will continue operation twist until the end of the year. Ho hum really. The Dow ended the session with a loss of 13 points on light volume. The advance/declines were about even. We're still short term overbought but that doesn't mean we can't go higher. The summer rally isn't over yet in my opinion. The resistance on the S&P 500 comes in at between 1370 1nd 1380. The summation index continues higher. GE was up 1/8 on average volume and closed on the highs for the day. We are right at the downtrend line in effect since the beginning of 2011 on the weekly charts. If we can break through here on decent volume, GE will have no overhead resistance and higher it will go. Still short term overbought and staying there. Gold bounced all over the place today and finished down $7 on the futures and at least that much more in the aftermarket. The US dollar gyrated as well but finished the day relatively unchanged. The XAU fell 1 1/2. ABX was unchanged, while GG and NEM had fractional losses. Volume was good. The gold shares continue to outperform the precious metal. I'm looking at gold share calls going out a couple of months. I"ll still be waiting for some type of pullback first though. Mentally I'm feeling OK. So we got the Fed over with and now what? There's always the possibility of some type of headline out of Europe, either positive or negative. Event risk is still possible at any time. So it remains a time to be vigilant and to keep an eye on developments around the world. Although I am hoping that we get a case of the summer doldrums this year. We'll see how the overseas markets react to todays news and go from there.