Wednesday, September 19, 2012
We bounced around a little today but not much on the end result as the Dow gained 13 points on light volume. The advance/declines were positive. The technical story for the stock indices remains the same. My thinking is that the recent sideways action is simply another pause before we head higher. But I could be wrong and often am. Still, I think we'll head up from here. GE was up about 1/4 again on light volume. Very overbought here on a short term basis but have been for a while. Won't last forever. Gold was flat on the futures today as the US dollar fell just a touch. The XAU gained 1 3/4. ABX, GG and NEM all had fractional gains on average volume. Very overbought on the gold shares as well but there are no sellers. I'd still like to try the October gold share calls if I get the chance. Mentally I'm feeling OK. The trend remains up for the stock indexes. The summation index is moving higher. There really isn't any overhead resistance and any decline will probably be bought. We should keep moving up into the November election. The market is telegraphing an Obama victory. The market action is consistent with the president being re-elected. The worlds central banks have indicated that they will print as much money as needed to keep the game alive. That is extremely bullish for gold going forward. The gold shares continue to outperform the precious metal. That is bullish for them. Just 2 days left here in option expiration week. We really haven't seen any volatility yet. We'll watch what happens overseas tonight and go from there.