Tuesday, October 18, 2011
Back to the upside as the Dow gained 180 points on average volume. The advance/declines were 5 to 1 positive. We are attacking the top of the congestion area and I do think we will break above it. Expiration week usually has a positive bias and that may be enough to push us through. Calls and being long are the way to go until further notice. GE was up 1/2 on average volume. Waiting on the earnings report on Friday. Gold took a hit today, down around $25 on the futures. We were down lower than that early and made even more of a comeback in the aftermarket. The US dollar was just a bit lower today. The XAU dropped early on but closed higher by 1/3 on the day. ABX off 1/8, GG was flat and NEM fell 3/4. Volume picked up here. The gold shares sold off hard to start the day and followed the market higher for the rest of the day. My order for the ABX November calls wasn't filled. Today was probably the day to get them. It was kind of a reversal back to the upside for the gold shares today. I'm leaving the order in but may have to adjust it if we continue higher in ABX from here. Or I simply missed it. Time will tell. Mentally I'm doing OK. The stock indices feel like they want to go higher here. The summation index is still pointing to the upside. You cannot fight that. We're still overbought both short and medium term but Mondays action relieved some of that. We'll see what happens overnight in Europe and take it from there.
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