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Monday, October 21, 2013

Digesting the recent gains or simply marking time until tomorrows employment numbers.  The Dow lost 7 points on light volume.  The advance/declines were slightly negative.  The overall market is still performing better than the Dow but by not such a wide margin as before.  The summation index continues higher.  Still short term overbought for the stock indices.  Money however needs a place to go.  The trend remains up for the stock market.  GE was up over 1/2 today on heavy volume for a nice follow through to the breakout on Friday.  GE is telling us that the market has no worries for now.  If we do get a pull back in GE, it will be an opportunity to buy some calls there in my opinion.  I'm not sure that will happen though.  Gold didn't move much today and neither did the US dollar.  Waiting for the employment data perhaps.  The XAU rose 1 3/4 though.  ABX, GG and NEM were all up around 1/2 or so.  The volume was pretty light here which isn't a positive.  At least price is moving in the desired direction.  My November ABX calls are in the black.  Mentally I'm feeling a bit tired, did not sleep well.  Not sure what to expect with the employment report and the data is relatively old.  It could be perceived as stale numbers and perhaps will be not as market moving as usual.  That's a guess and the important thing as always will be the market reaction to the numbers.  We're short term overbought on the stock indexes and have been.  A move lower would not be a surprise.  Gold broke a daily down trend line last week and now we've had 2 days of slight movement with little volume.  ABX is getting close to its daily down trend line since late August as well.  A move through there with decent volume would be a positive.  The weekly candlestick chart for ABX still shows a potential head and shoulders bottom.  We would have to somehow break through the $21 level on good volume for that pattern to be valid.  We'll watch the overseas market overnight and go from there.

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