Wednesday, July 01, 2009
The Dow gained 57 points today on the cusp of the employment report. Volume was light and the advance/declines were over 2 to 1 positive. We were up over 100 at one point. The breadth here is encouraging but the volume isn't. It is summer though. The summation index is starting to move sideways here as well as the market. So we'll see what happens tomorrow. I really don't know what to expect. Gold had a good day, up the $13 we lost yesterday. The XAU gained over 5 points. ABX, GG and NEM were all back up around 1 1/2. Volume was light though. The dollar did lose some ground. One of my thoughts is that the employment report comes out weaker than expected and the dollar gets hit thus supporting gold. Then the dollar gets sold off even more with the holiday here in the US on Friday. That's all just a guess. I also thought that yesterdays sell-off in the gold shares was just end of the month activity and that may prove to be correct. But I didn't act on it. It's tough for me to take a stand here with the volume so anemic. So there's no rush to do anything at the moment but that could be wrong. Mentally I'm feeling OK, slept well enough. We'll wrap up the week tomorrow and then take a long weekend. It seems as though the market has really slowed down here and that is expected for the summer. But summer has just begun and at this rate it could be a long one.
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