Thursday, October 20, 2011
An up and down day as the Dow finished ahead by 37 points on average volume. The advance/declines were positive. The market is being held hostage by the ongoing fiasco in Europe. Hopefully something gets resolved over the weekend. But that won't be the end of it as there are no quick fixes. Expiration Friday tomorrow. More overbought than oversold here. Summation index still moving higher. I'm a believer in a breakout to the upside from the congestion zone for the stock indices. GE was up 1/8 on average volume before the earnings report tomorrow. Tomorrow the market will key off of this report early in my opinion. I'm still looking out to January if and when we get oversold here. Gold fell again today as the US dollar showed a bit of strength. The precious metal lost over $30 and the XAU fell 1/4. ABX down 1/2, GG lost 1/8 and NEM off by 2/3. Volume was good. My ABX calls are in the red. I'll be lucky to get out alive at this point. I think that I was a day early on the purchase. I'm committed to holding on until the earnings are out next week. We did close pretty far from the low of the day which may portend higher prices tomorrow. Mentally I'm a bit tired, did not sleep well. GE earnings tomorrow should set the tone for the stock market and we'll go from there. Expiration Friday will add to the mix. Gold and the gold shares are having a tough week and we'll see how it closes out. No economic reports due out tomorrow but they are taking a back seat to Europe anyway. Let's finish up the trading week and see what happens over the weekend.
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