Wednesday, July 06, 2016
It was a one day reversal to the upside as the Dow opened lower and closed higher. The most watched index climbed 78 points on better than lately volume. The advance/declines were about 2 to 1 positive. Just waiting for Friday in my opinion. The summation index continues to the upside. Bumping up against the near term resistance in the S&P 500. I'm expecting that we'll get through. Still short term overbought for some of the technical indicators, room to run on others. GE was up almost 1/3 on average volume. Close to a new yearly high here. Gold was up $7 on the futures as the US dollar was a bit lower. The XAU rose 3 1/3, while GDX gained 7/8. Volume was good. Gold and the gold shares have broken out to the upside from their consolidation zones and continue to attract capital. Plenty overbought here though on both a short and medium term basis. Mentally I'm feeling OK. Was it just less than 2 weeks ago the world was consumed by the vote in England? That seems to have left the markets radar in a hurry. Tomorrow should be a wait and see game ahead of Fridays employment report. My guess would be that we're heading higher regardless of the numbers. Perhaps GE is leading the way here. I do not have any trades in mind at the moment. Europe and Asia were generally weaker overnight. We'll see what tomorrow brings.