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Monday, December 02, 2013

A down day to start the week and month off as the Dow fell 77 points on light volume.  The advance/declines were about 3 to 1 negative.  Todays action may turn the summation index back down again or produce a sideways chart pattern.  We fell apart in the final hour again and that isn't a positive.  However the volume is light and perhaps all the players haven't returned just yet.  Plenty of economic data from Wednesday through Friday capped off with the employment numbers.  We're overdue for some weakness but we've been that way for quite some time.  We will have to see if there is any follow through downside tomorrow.  GE was unchanged on the day and the volume was average.  I'm not in a hurry to get the January calls here but I'm keeping an eye on things.  Gold was one of the stories today as the futures fell almost 30 bucks on a stronger US dollar.  We are getting closer to the important support level at $1200.  The XAU shed 4 1/2.  ABX, GG and NEM all lost a buck or so on slightly better than average volume.  The fundamentals for gold remain horrible.  However the technicals are blown out to the downside and I am considering getting the January GG calls tomorrow.  Or at least placing in an order overnight.  Some of the longer term technicals for GG are in the spot where previously there has been some type of bounce.  I will check things out again tonight.  Mentally I'm feeling OK.  The small stocks fell today as well so maybe we will finally see some sustained negative price action.  Hasn't happened yet though but all the pieces are in place.  But like I've said before, one day doesn't make a trend.  Tomorrow should be interesting.  Gold had a negative session and closed near its lows.  Ditto for the gold shares.  Perhaps this is an area I should just steer clear of.  Something to ponder tonight as I check the gold share charts.  We'll see how the foreign markets react to todays stock index and gold declines.  That should provide a clue for tomorrows open.
     

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