Tuesday, April 28, 2015
Back to the upside today as the Dow rose 72 points on average volume. The advance/declines were positive. The summation index is heading sideways at this time. We did sell off early and then come all the way back for a one day reversal to the upside. The action was the opposite of yesterday. Most major stock indices made a comeback today but the NASDAQ didn't make it into positive territory. Tomorrow will be interesting with the 1st quarter GDP early and then the Fed later in the day. I'm not sure which way we'll go but I still have to lean towards bullish outcomes for now. GE was up 1/4 on average volume. It looks as though we have put in a hammer here on the daily candlestick chart. That bodes well for higher prices here. Gold followed through to the upside on US dollar weakness. The precious metal futures added another $10 to yesterdays stellar gains. Could the traders here think that we'll get a weak GDP report followed by a dovish Fed? Or is there something else behind the recent strength? The XAU was up 2 3/8, while GDX gained 3/4. Volume was good again showing that the gold shares are receiving some interest here. The earnings for ABX were weaker than expected but it rallied anyway. ABX gained 1/2 on good volume and closed above $13. Some of the technical indicators for ABX are pretty extended in overbought territory. My ABX May calls are showing a small profit. I probably should get rid of them sooner rather than later. Mentally I'm feeling OK. Nothing to do now with respect to the stock market except wait to see the reaction to tomorrows developments. The sideways summation index tells you that things can go either way. The technicals are in the overbought zone but that doesn't mean it can't stay that way. So we'll see. Gold has had a couple of good days in a row and the indicators have roared back to the upside. It's possible that gold is telling us what to expect tomorrow. We'll know in less than 24 hours. As usual we'll watch the overnight action and then see what tomorrow brings.