Tuesday, January 24, 2012
We opened lower today and tried to fight our way back but the Dow closed with a loss of 33 points on light volume. The advance/declines were positive. The overall market was stronger than the Dow. Still overbought and still no real pullback. The summation index continues higher. We'll get a Fed announcement tomorrow and that may move things. GE was down 1/8 on light volume. We've been moving sideways here for about 3 weeks. No trades there for now. Gold lost $13 as the US dollar was a bit higher. The XAU lost 3 2/3. ABX off 1 1/2, GG fell a buck and NEM dropped 1 3/4. Volume was average or better. NEM has been the leader for the gold shares and we are setting fresh lows there. Oversold on the gold shares and almost at the Gold/XAU ratio buy signal. It's possible that both gold and the gold shares will decline together. Regardless, I'm going to give the gold share call trade a shot this week if the signal comes through. Mentally I'm feeling tired, did not sleep well. The overall market is overbought and I expect some weakness this week. Today was not a real decline in my opinion. The overall market was too strong. So we'll get through the Fed announcement tomorrow and go from there.
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