Wednesday, October 27, 2010
The Dow lost 43 points today on average volume. Advance/declines were over 2 to 1 negative but the overall indices were stronger than the Dow. We were down well over 100 points but came back as has been the pattern for quite some time now. It seems as though the market just wants to continue to grind higher. Until we see some real downside, that is the scenario that I expect. No OEX trades for now. Gold lost $16 today as the Dollar gained some more ground. The XAU lost 3 7/8. ABX and NEM each lost a buck, while GG fell about 1/2. Volume was a bit better than average. I canceled the open order for the November ABX calls before the earnings. We'll see how they come out and take it from there. I may try the order again. We're oversold on the gold shares here. I expect pretty good earnings but that doesn't mean the shares will rise. Mentally I'm feeling fine. GDP on Friday and the Fed next week. There will be plenty of information for the markets to digest. However, the overall trend remains up until proven otherwise. The summation index is moving sideways and after today it should start to head lower. That could be the sign of a change in direction but it hasn't happened yet. It's possible the summation index could head lower and the indices simply move sideways. We'll see.
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