Monday, August 27, 2012
A mixed, mundane Monday as the Dow fell 33 points on very light volume. The advance/declines were negative. The Dow led the way down as other stock indices were not as negative. We did continuously lose ground in the final hour and that is not a positive. In a holding pattern here as far as I'm concerned as we wait for everyone to return next week. Plenty of economic data out this week but we'll have to see if it means anything to the market. GE was up a touch on the same very light volume. Nothing new to report here. Gold was up a couple bucks on the futures but fell in the aftermarket. The US dollar was flat today. The XAU dropped 2 1/8. ABX, GG and NEM all had fractional losses on light volume. My ABX October calls are still in the black but losing ground on a daily basis. The volume is light here and that is what you'd like to see on a decline. However we haven't been able to break through the $38 level of resistance, which is also at the weekly downtrend line from February. Plenty of time left on these options but selling them last week and then buying them back looks like the proper strategy that I did not follow. The gold shares remain overbought. We'll see what happens going forward. Mentally I'm feeling OK. The stock indexes are in a wait and see mode here as the 1420 level on the S&P 500 remains key in my opinion. If we can get through there with some volume it would be bullish. Gold is due to take a rest. As long as it doesn't turn into a protracted decline I think the bullish cause will remain positive. That's a guess as usual. Nothing out of Europe lately and we've still got Bernanke on Friday to deal with.