Thursday, September 27, 2012
Back to the upside today as the Dow gained 72 points on light volume. The advance/declines were 3 to 1 positive. The overall market was stronger than the Dow. I expect further upside tomorrow. The only negative today was the light volume. However positive market action was due and it showed up. We will most likely set new highs for the year in the S&P 500 on this leg up. That is my guess at the moment. With GE having a very good day I believe that this will help lead the market higher. GE gained 2/3 on good volume. Today GE set a new high for the year and I think the overall market will follow. Still overbought on GE but that is a condition that could last for a while. Gold had a good day on the weaker US dollar. The precious metal futures rose $26. The XAU gained 5 2/3. ABX up 7/8, GG higher by 1 1/3 and NEM higher by 1 1/4. Volume was OK here. It looks like that I've missed the chance to get long the gold shares this week as my open order wasn't filled on the decline yesterday. I'm leaving in the October ABX call order for now but I doubt that it will be filled. Mentally I'm feeling OK. The presidential re-election rally is still in place. We should continue higher into the beginning of November. After that, it's anybodies guess. Gold should continue higher as well and it is. We'll probably see new highs on this leg up but I don't know when that will occur. Any pull back in the gold shares looks like it can be bought. The money continues to flow there. We'll end the week, the month and the quarter tomorrow.