Wednesday, January 19, 2011
The Dow moved lower today by 12 points. The overall market was much weaker than the Dow though. Advance/declines were 3 to 1 negative and the volume was average. I'm not sure this is the beginning of something major to the downside. We do need to work off the overbought condition of the indices. The uptrend line from the beginning of September remains in place. Todays action should start to move the summation index lower and that's something that we will have to keep an eye on. GE lost 24 cents on good volume. Earnings on Friday and it's anybodies guess what happens after the release. I'm trying to stay on the sidelines there. It isn't worth the risk at this point. Gold was up a couple bucks today but the XAU fell 2 3/4. ABX and GG were down fractionally, while NEM dropped over a buck. We are oversold here and I am looking at the February calls here. The dollar was down again today and it really didn't help gold at all. There is a disconnect going on there and I don't know why. However I do believe that my next trade will be in the gold shares for February. We'll see. Mentally I'm feeling fine. Slept well enough and I'm back in the normal market routine. Today was the first really negative day that we've seen this year. We'll have to see if we bounce back tomorrow or get some downside follow through. What actually happens could be the near term key to the market.
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