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Tuesday, November 12, 2013

The Dow was off over 100 points during the session but made it back for a loss of 32 points on the session.  The advance/declines were almost 2 to 1 negative and the volume was light.  The small stocks were relatively stronger today.  However the summation index is still heading lower.  I think perhaps we should take our cues from there even though it is expiration week.  Unless we see some strong upside tomorrow my guess would now be that we are heading lower.  GE was flat once again on the day but the volume picked up.  No trades here for now.  Gold continues to drop, off $10 on the futures and more in the aftermarket.  The US dollar finished flat on the session.  The XAU was off 1 7/8.  ABX, GG and NEM all had fractional losses on better volume.  There is still no love for the gold shares.  Mentally I'm feeling OK.  The stock indices are trying to make up their mind here.  The technicals remain overbought and with the summation index heading lower, I think that we are going to roll over here.  Buyers did come in near the end of the day today, in the last couple of hours.  However I'm sticking with a short term bearish stance for now.  That could change if the summation index turns around.  Gold remains dead money or worse.  It looks like we're heading back to $1200 and we'll have to see if that holds.  Like I said yesterday, the fundamentals for gold are looking bad at the moment.  You can't fight that.  We'll see what tomorrow brings.

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