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Monday, October 28, 2013

A Monday in waiting for the stock averages as the Dow fell a point on light to average volume.  The advance/declines were negative.  Working off the overbought condition here in my opinion.  Some economic data but no real market moving event.  The small stocks had relative under performance.  Plenty of economic data out tomorrow including retail sales and inflation.  Then it's on to the Fed for Wednesday.  We are over extended here and due for at least a pause.  GE was up about 1/4 on average volume.  Still consolidating the recent gains here.  Gold was flat on the session with a slightly higher US dollar.  The XAU added 1/2.  ABX, GG and NEM had fractional gains on light volume.  Overbought for these issues as well.  Earnings due Thursday for ABX and NEM.  My November ABX calls are still showing decent gains.  Mentally I'm feeling a bit tired, did not sleep well.  The major stock indexes continue to seek new highs day after day.  At some point this will stop and we are probably pretty close to that point.  We'll have to see the markets reaction to the Fed on Wednesday and what type of tone that sets.  The dollar is due for some type of bounce I would think due to its oversold condition.  Gold may need a rest or consolidation near term as well.  The precious metal has continued higher on lighter volume.  I suppose I'll wait for the earnings for ABX on Thursday and then decide about exiting the ABX call trade.  A break above 21.50 on good volume would be a huge positive but anything can happen.  We'll see what transpires in the next couple of days leading up to the earnings announcement.  I'll keep an eye on the overnight action and go from there.

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