Tuesday, January 12, 2016
We bounced around and ended the day higher as the Dow gained 117 points on very heavy volume. The advance/declines were negative though. Not sure what to make of it but the breadth hasn't been positive lately. The summation index is still heading lower. The jury is still out on what will happen here. I'm still cautious due to the close proximity to the zero line for the summation index. GE was up a few cents and volume was average. Gold was off around $8 on the futures as the US dollar was little changed. The XAU dropped another 1 1/2 and GDX shed 1/3. Volume was average for lately. It appears that the rush to gold is over. Mentally I'm feeling tired as I have a busy schedule this week and it is taking its toll. You can only do so much. I think that the bounce that we have seen so far is anemic. It doesn't bode well if you're looking for a bullish future in the medium term. We need to see some stronger upside soon or I believe this market will simply roll over again. Time will tell on that. It looks like Europe is following the US lead, with the Asian markets still moving down. We'll keep an eye on the overnight developments as usual.