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Tuesday, April 29, 2014

Moving higher as the Dow gained 86 points on good volume.  The advance/declines were positive.  The Dow is ever so close to hitting an all time high.  However the small stocks are nowhere near new recovery highs and that is an issue for the stock indices going forward.  Even if the Dow does break to new highs, caution is advised on being too bullish.  Plenty of news tomorrow with the 1st quarter GDP and the Fed.  Overbought on the major index technicals but that doesn't mean we can't go higher.  End of the month tomorrow as well.  GE was flat and the volume was light.  Short term overbought here as well.  The gold futures were off a couple bucks and the US dollar was a bit higher.  The XAU was up 1 1/2.  ABX, GG and NEM all rose 1/3 on light volume.  ABX earnings due before the bell tomorrow.  The May ABX calls that I have are slightly in the black.  The reaction to the earnings will most likely make or break this trade.  Mentally I'm doing OK.  Volume has increased to the upside for the major stock indexes.  This leads me to believe that higher prices are coming regardless of the data.  That's my guess at the moment.  The summation index is still trending sideways.  Gold is trying to make up its mind where to go here.  A break of the down trend line would be constructive.  The gold shares are out performing right now and that is usually bullish.  I'll be keeping an eye on the ABX report in the morning and decide what to do from there.

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