Tuesday, July 03, 2012
Continuing higher and that is the plan as the Dow gained 72 points on extremely holiday light volume. The US markets closed early today. The advance/declines were almost 4 to 1 positive. An overseas bank scandal did nothing to stop the rise in the stock indices today. A market that shrugs off bad news is one that is going higher. The S&P 500 is at its resistance line on the daily charts. The smaller stocks have already broken through their resistance and the S&P 500 should follow. GE was off a touch on extremely light volume. Not exactly sure why GE isn't joining in the party here. Still overbought on the daily technicals here but that doesn't mean that we can't go higher. I may look at the July calls once again. Gold had a good day, up over $20 on the futures. The US dollar was just a bit weaker. The XAU rose 5 7/8. ABX and NEM climbed 1 1/4, while GG was up 1 7/8. Volume was very light. My ABX August calls are in the black. The daily technicals are mid-range, so there is still room to the upside in my opinion. Mentally I'm feeling a bit tired, did not sleep well. The stock indexes are in full summer rally mode. We'll see how far we can go. There's always the risk of some headline out of Europe but as we've seen recently that can go either way. Friday is the next event in my mind but the market may ignore that as well. Gold has found a bid here and I certainly don't know why. We were short term oversold though. We'll watch events overseas if there are any, take tomorrow off and be back on Thursday.