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Tuesday, December 11, 2012

Overbought yet continuing higher as the Dow gained 78 points on average volume.  The advance/declines were 2 to 1 positive.  The summation index continues higher.  We'll get the Fed tomorrow and we'll see what happens with that.  Obviously the trend remains up.  We just got through the 50 day moving average on the major stock indices.  That's a positive moving forward.  Perhaps we are beginning the Santa Claus rally.  Of course, that could all change tomorrow.  GE was up 1/8 on good volume.  No trades there for now.  Gold was lower by about 5 bucks on the futures despite a weaker US dollar.  Gold and the dollar have not had their usual relationship lately and that is troublesome going forward.  The XAU lost 1/2 today.  ABX, GG and NEM were mixed with fractional moves one way or the other on light volume.  Gold will probably move off of the Fed announcement tomorrow.  That should give us the near term direction for the precious metal.  We'll have to see how the gold shares react.  Mentally I'm feeling a bit tired, did not sleep well.  The stock indexes continue higher as the rally lives on.  Overbought, staying there and that is a condition that lasts in bull moves.  Gold seems to be dead money at the moment.  Unless we see some kind of move following the Fed, that could be the case for a while.  If gold can't rally on a weaker US dollar then something is wrong somewhere.  My January ABX calls remain losers.  We'll see what tomorrow brings.    

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