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Thursday, June 26, 2014

The Dow fell 21 points today on light volume.  The advance/declines were slightly positive.  The market sold off hard early and spent the day making its way back.  Looks like we could be in a holding pattern for the stock indexes for now.  Actually I don't expect much to happen between now and the 4th of July holiday.  But that's a guess as usual.  We'll get the employment report a week from today due to the holiday next week.  Still short term overbought on the stock index technicals.  GE was off another 1/8 and the volume was light.  Is GE the canary in the coal mine?  Time will tell on that front.  Gold was off five bucks on the futures.  The US dollar was flat on the session.  The XAU rose a bit over 3/4.  ABX, GG and NEM were all up around 1/4.  Volume was light.  Once again the gold shares are doing better than gold itself.  I am still trying to be patient here but all signs that I can see point to higher gold share prices coming.  I am still looking at the September or October calls.  GG is the best performer here and also looks to have the best chart set up.  However the market is not going to make it easy for you.  Mentally I'm feeling OK.  There is nothing to suggest that we are on the verge of a major move up or down.  A grind to higher prices appears to be in store for the near term.  I would like to see some sort of pullback in the gold shares but the market rarely accommodates you.  That said, I'd still like to wait for the holiday period to pass.  I do not know the reasons for the recent interest in the gold shares and gold.  All I can say is that money is now flowing into this sector.  Higher prices will come.  We'll close out the trading week tomorrow.

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