Thursday, August 02, 2012
The ECB followed the Fed with not much to say and the Dow moved lower. The major average fell 92 points on average volume. The advance/declines were negative. We were down twice as much during the session. I have expected higher equity prices and we have done nothing but move lower. However the decline has not been as bad as it could be. Considering the lack of Central Bank follow through to their previous statements, we should be down much further. But that is simply my opinion. The daily technicals have rolled over for the stock indexes and the summation index is now trending lower. That could all change on tomorrows employment report or the averages will confirm the downside by moving lower. Or the number could be a non-event since it will be a Friday in the summer. We'll soon know the answer. GE was off 1/4 on average volume. GE had a pretty wide range for the day, I'm guessing due to the uncertainty going forward with the employment report. No trades there for now. Gold dropped again, off $16 on the futures. The US dollar rose again today. The XAU held up OK, considering the dollar and the overall slump in the indices. ABX, GG and NEM all had fractional losses but NEM led the way down and that isn't bullish. My October ABX calls are still in the red. The gold shares have held up better than lately in the recent gold decline. We'll see what that means going forward. Mentally I'm feeling tired, did not sleep well. All eyes will be on the employment numbers tomorrow. I have no idea what they will be. We will have to see how the market reacts and take it from there. Even with the recent decline I'm still in the bullish camp for now. We'll see what happens tomorrow.
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