Wednesday, November 22, 2006
The Dow was up 5 points on light volume. Advance/declines were positive and the overall market was stronger. We are very overbought here, at the top of the ranges on a lot of indicators. So a drop is imminent but none of the drops lately has led to anything major. Gold didn't do much today and neither did the XAU. Volume was light. It's pre-holidays doldrums and then a shortened session on Friday. So there isn't much really going on and this is more of a time to just take it easy. Sometimes the beginning of December is weak, setting up the end of the month and January to be positive. The market has had a very good run here and a pullback would probably be a good thing. But the market will do what it does, so if it just continues higher I suppose that wouldn't be a surprise either. Mentally I'm on hold waiting for the next trade. I'm not going to force things and will wait and see if I get a chance for the gold trade. Otherwise it will be the sidelines until a decent signal is generated.
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