Monday, July 02, 2012
Pretty much just a drift today as the Dow fell 8 points on light volume. The advance/declines were 2 to 1 positive. The overall market was much stronger than the Dow. The summation index continues higher. The economic news today for the US was soft but the market wants to go higher here. Summer rally mode continues. We should move higher into the employment report on Friday. It's a vacation week with the July 4th holiday right in the middle. I would not expect a lot of volatility or volume. GE fell 1/3 on average volume. Still overbought here on the daily technicals. We did have a vaid breakout on Friday though. I'm not sure if I'm going to try the July calls here. Gold was off around $5 on the futures as the US dollar bounced today. The XAU was up 1/8. ABX, GG and NEM all had fractional moves to the downside on very light volume. My ABX calls are still in the black. At his point I plan on holding the calls until the earnings report at the end of this month. Mentally I'm feeling OK. The stock indices are in a waiting game until Fridays employment report. Throw in a holiday in the middle of the week and very light volume. So I really don't expect much in the way of market moves for now. I do think that we'll drift higher for the time being. Gold should be quiet as well as the market players are on holiday. I'll simply watch and wait for the numbers on Friday.