Wednesday, September 12, 2012
The Dow gained 10 points today on average volume. The advance/declines were almost 2 to 1 positive. The market was lower but made a final hour comeback. Waiting on the Fed. The market breadth remains in an uptrend. The McClellan oscillator continues to the upside. I think that we will continue to see higher prices going into the September option expiration. It looks to me like that is the set up at the moment. Of course the Fed could move things the other way if the reaction to the announcement tomorrow is negative. But even so, I feel it would be short lived. I could be wrong. GE was up almost 1/3 on average volume. Overbought and staying there for GE. Looks like I won't be able to buy the October calls here as a pullback hasn't materialized. Gold was flat on the day as the US dollar dropped a bit more. The XAU gained 2/3. ABX up 1/4, GG rose 3/4 and NEM added 1/2. Volume was good here. The gold shares sold off early and came all the way back. Still overbought here but trying to go higher. I'm still interested in the October gold share calls if I get the chance to re-enter. Mentally I'm feeling a bit tired, did not sleep well. I'm guessing things will get a bit volatile with the Fed news tomorrow. It could be a triple digit day either way. I have a couple of trading ideas but I will let the news pass before attempting the next trade. All eyes on the Fed tomorrow.