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Thursday, March 06, 2014

A mixed bag today as the Dow was higher by 61 points on light volume.  The advance/declines were positive.  The NASDAQ was lower and the overall market was weaker than the Dow.  All eyes will be on tomorrows employment report.  The summation index continues higher.  The market still has the feel to me that it will go higher regardless of the numbers out tomorrow.  We're overbought and have stayed that way for some time.  Money needs a home and stocks are still the place where money is going.  GE was up 1/4, the volume was OK and we are now above the 50 day moving average.  If GE is the precursor for the overall market again then higher prices are coming.  Gold rallied today on a weaker US dollar.  The precious metal futures rose over 10 bucks.  The XAU gained 1 1/4.  ABX was flat on the day, while GG and NEM were up 1/3.  Volume was light.  Gold should get moving tomorrow as well and it remains overbought.  Mentally I'm feeling a bit tired.  The stock market needs a breather but when that will occur is anybodies guess.  We are still in a favorable seasonality period for stocks.  That is probably one of the reasons we've stayed overbought for so long.  Another is the fact that we are at all time highs for some of the indexes and there is no overhead resistance.  Gold has had a good run but is overdue for a rest as well.  Ditto for the gold shares.  The volume has been pretty light for gold the past 2 sessions, so maybe some weakness is coming.  We'll see what the reaction to tomorrows employment report is and go from there.

1 comment:

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