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Monday, November 03, 2014

A mixed bag to start the month of November as the Dow lost 24 points on average volume.  The advance/declines were barely negative.  The overall market acted better than the Dow.  The summation index continues higher.  Still short term overbought for the major stock indices.  We'll get the mid-term elections out of the way and wait for the employment report.  There is nothing in the way of higher prices.  GE was off 1/8 and the volume was good.  I'm still thinking about getting the March call here.  The timing is the ongoing question.  Gold was off a couple bucks on the futures as the US dollar continued its climb higher.  The XAU was actually up two points and this is the first sign of the gold shares starting to act better.  Of course one day doesn't make a trend but it is something to keep an eye on.  ABX and GG had very minor gains, while NEM was up 1/3.  Volume remains heavy here.  I did place an order for the January ABX calls and I am leaving it open.  The technicals for the gold shares remain oversold.  However it looks like both ABX and GG are trying to hammer out bottoms here on the daily candlestick charts.  Mentally I'm feeling OK.  I'm not sure how much longer the straight line up from the lows can go.  But you've got to admit it's been pretty amazing.  I really don't think anybody saw that coming.  But where we go from here is what matters now.  Declines, if we get any, can and will be bought in my opinion.  I do not have any OEX trades in mind right now.  I am starting to look at the SPY as a trading option as well.  Gold has broken support and lower prices are forecast from that.  How low is the question here.  The gold shares look like they are trying to stabilize here.  Whether or not they can remains to be seen.  I'm still willing to try the January calls here if I can get filled at the price that I want.  This looks like it will be my next attempt at a trade.  We'll see what transpires overnight and watch the pre-election markets tomorrow.

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