Monday, October 01, 2012
A mixed market today despite the 78 point rise in the Dow. The NASDAQ showed a slight loss. The advance/declines were positive. Volume was light. We should be seeing a rise here in my opinion, ahead of the employment report on Friday. But the action lately has been sloppy. The summation index continues heading lower. I'm sticking with a bullish stance unless we break the uptrend line in the S&P 500 at 1420. GE was up 1/8 on average volume. As long as GE continues higher it should bode well for the stock indices. Gold was up almost $10 on the futures today as the US dollar was lower. The XAU rose 1 1/8. ABX and GG showed slight gains, while NEM had a fractional loss. Volume was light. I'm still considering the October gold share calls but have not put in another order just yet. I may go out to November here. Mentally I'm feeling OK. It's never a good sign when the Dow is the strongest index and the over the counter market lags. That's what we got today. It's a short term negative in my opinion. The technicals here are getting mixed, which makes for a tough directional call. But like I said before as long as 1420 holds on the S$P 500, I'll still look for higher prices. It's still a presidential re-election rally for now. Gold is still above the uptrend line from mid-August. The short term technicals for gold remain overbought. We'll check the overseas markets overnight and go from there.