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Monday, September 29, 2014

Another volatile session today as the Dow fell 41 points on average volume.  The advance/declines were negative.  The market fell straight down at the open and we were down over 170 points early.  But the stock indices spent the rest of the day making up ground and it was pretty impressive after the opening.  The decline is either over or we are hanging on for dear life before something big to the downside happens.  The summation index continues lower.  The small stocks hung on better and that is a positive.  End of the month tomorrow.  GE was off almost 1/4 and the volume was average.  Solidly below both the 50 and 200 day moving averages now.  Gold was up a few bucks on the futures but back down in the aftermarket.  The US dollar was flat on the session.  The XAU was off another point.  ABX, GG and NEM all had fractional losses on light volume.  The gold shares are completely blown out to the downside.  The technicals have been so oversold for so long that they don't even mean anything anymore.  My January ABX calls are in the red and on their way to the stop loss point.  Mentally I'm feeling OK.  The stock market made quite a comeback from the early bout of selling.  That cannot be ignored.  I would expect to see more buying tomorrow.  But I cannot get too bullish until the summation index turns around.  There is a chance that the selling is done for now.  Some of the medium term indicators are at levels where we have started to rally again.  Tough game as always.  The gold shares are decimated.  We'll probably see some more end of the month and quarter selling tomorrow.  That trade looks like it will be a loser.  We'll see how the foreign markets react overnight and go from there.

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