Thursday, July 30, 2015
Almost unchanged on the session after selling off early. The Dow lost 5 points on average volume. The advance/declines were about even. GDP came in about where expected and the market lost some ground early. However we came all the way back and that is a positive. The small stocks had good relative strength as well and that is a plus. The summation index is trying to turn around here and a decent positive breadth day should do the trick. I'm looking for higher prices going forward. GE fell about 1/8 on light volume. No trades in mind here. Gold dropped on a stronger US dollar. The spot gold price fell $7 on light volume. The XAU dropped 1 3/4, while GDX shed 1/2. Volume was good here. Still no love for gold and the gold shares. My ABX October options remain mired in red ink. Mentally I'm feeling OK. We'll finish the month of July tomorrow. A couple of minor economic reports are due. Position squaring for some funds as usual. It was a positive month for the major averages. If we can get the summation index heading back to the upside, I'll once again say that we're headed for new all time highs in the S&P 500. Gold has been going nowhere or lower. We are entering the positive seasonal time of August/September for the precious metal. If we don't see some kind of rally here, I'd be surprised. The oversold condition here has lasted longer than I would have imagined. The gold shares have been decimated. The carnage seen hasn't happen since the last major bear market in gold. But bear markets don't last forever. I suppose I am hoping for some kind of bounce to cut my losses in the ABX October call trade. We'll see. We'll watch the action overseas tonight and finish up the week and month tomorrow.