Wednesday, August 01, 2012
The Fed has come and is gone once again. Nothing new was said and that wasn't unexpected. The markets sold off, came back and sold off once again. The Dow fell 32 points on good volume. The advance/declines were negative. Now that's out of the way and we'll see what comes from the ECB. Still more overbought than oversold on the stock index technicals. The summation index is trending sideways. I'm still a believer that we are in an uptrend but it's a slow moving affair. GE was flat on the day and the volume was light. No trades there for me at the moment. If anything, I may try the August calls. Gold fell today as the US dollar moved higher. The precious metal futures were off $7 and a bit more in the aftermarket. The XAU lost 1 3/4. ABX, GG and NEM all had fractional losses and the volume was good. The gold shares sold off hard early in the session and then made a comeback. Not exactly sure of what to make of things here but at least it wasn't a total sell off. My ABX October calls are still in the red. Mentally I'm feeling OK. The small stocks had a worse day than the big caps and that usually isn't a positive going forward. The transports had a rough day as well and they often times lead the way. Perhaps we are simply in a waiting game until the employment report on Friday. Gold sold off today but it wasn't as bad as it could have been. The gold share technicals are breaking down from overbought. August and September are historically the best months for the price of gold. We'll see. All eyes and ears will be on the ECB tomorrow. It should be some type of market mover.