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Monday, October 08, 2012

It was a semi-holiday today as the bond market was closed for Columbus Day.  The Dow fell 26 points on extremely light volume.  The advance/declines were negative.  I expect a bit of weakness in the early part of this week.  After that, who knows?  Not a lot of economic data out this week.  The trend is still up.  GE fell almost 1/4 on the same very light volume.  We're still overbought on GE, so there is room to head lower near term.  That doesn't mean that will happen but the technicals won't remain overbought forever.  Gold lost $5 on the futures as the US dollar was a bit higher.  The XAU fell 1 1/2.  ABX, GG and NEM all had fractional losses on the very light volume.  Still moving sideways here.  I did place an open order for some ABX November calls.  This will be my next trade if it gets filled.  This is the idea for now but that could change going forward.  Mentally I'm feeling OK.  I'm still a believer in new yearly highs for the S&P 500 going forward.  We've been moving sideways for 3 weeks.  No uptrend lines have been broken.  Earnings season is upon us.  Gold is moving sideways as well.  If and when we get through 1800 should signal the next up leg.  Patience is required for now.

1 comment:

Anonymous said...

You are right for gold.Gold has no barrier for growth and we have to take a patient for growth and as per current position we may show that gold cross big resistance $1800 in few month may be at the end of year.


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