Tuesday, October 02, 2012
Another mixed bag today as the Dow fell on light volume. The advance/declines were positive. The overall market was stronger than the Dow today. I really feel that we are about to take off to the upside soon. We've had plenty of time to fall here but it just isn't happening. I think that I will look at the October OEX calls tomorrow to try and find a trade. We've been moving sideways for a week and it is time to get going. I could be wrong but I don't think so. GE was off a touch on average volume. No trades here for now. Gold fell $7 on the futures and the US dollar was lower a bit as well. The XAU fell 1 1/4. ABX, GG and NEM had fractional losses on light volume. The gold shares have been moving nowhere for a couple of weeks since the huge move that began in August. I'm still a believer in higher prices here. I'm not sure if I'll try the October or November gold share calls though. Mentally I'm feeling OK. It could be that we are just waiting for Fridays employment report at the moment. The summation index continues lower but I am guessing that it will turn around soon. When markets drop, they usually go straight down and we have been hanging around now for a while. A short squeeze rally could be in order. Gold is hesitating but the underlying fundamentals for higher prices haven't changed. We'll see what happens tomorrow.
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