Wednesday, July 29, 2015
Continuing higher as the Dow gained 121 points on once again heavy volume. The advance/declines were about 3 to 1 positive. The McClellan oscillator should be back to around the zero line, while the summation index is trying to turn around. The Fed came and went and there was nothing really new there to report. The market viewed the statement in a positive light and the early daily rally continued. I think that the decline of last week has run its course and higher prices are coming. The TRAN broke through its daily downtrend line today and that is a positive. Perhaps this is the beginning of the summer rally that I've been looking for. GE was up over 1/8 and the volume was light. No trades in mind there. Gold was slightly lower on the session despite a good move up in the US dollar. The gold shares were slightly higher as the XAU and GDX had slight fractional gains. Volume was good. My ABX October calls are still very much in the red. I did purchase ABX outright today in a non trading account. Still very oversold on all time frames for the gold shares. Mentally I'm feeling OK. Two triple digit up days in a row and we'll see how tomorrows GDP report affects things. Stabilization in the Chinese market would probably help the bullish cause here as well. The short term buy signal on Monday was valid. Now it is a matter of how high will we go. Unless we see a dramatic turnaround tomorrow, the trend is up. Gold is trying to stop its decline here in my opinion. The jury is still out there. Gold remains unloved but perhaps we will get a short covering rally here soon. That is a hope and not a prediction. Still very oversold on the precious metals. We'll watch the action tonight and see how the market reacts to the GDP report tomorrow.