Thursday, October 04, 2012
Moving back to the upside as the Dow gained 80 points on average volume. The advance/declines were almost 3 to1 positive. We've worked off the overbought condition in the stock indices. Higher prices are the next logical conclusion. Todays action should send the summation index back to the upside. We should hit new yearly highs for the S&P 500 in the next couple of days. I'll go out on a limb and say that tomorrows employment report won't make a difference. We'll probably move higher regardless. That's my guess at the moment. GE was little changed on average volume. No trades there for now. Gold moved higher on a weaker US dollar. The gold futures rose $16. The XAU gained 5 1/2. ABX and GG tacked on over a buck, while NEM added 3/4. Volume was light. It looks as though I've missed the chance for the October gold share calls. The XAU closed on its high and should continue to the upside tomorrow. I still may try the November ABX calls. Mentally I'm feeling OK. The OEX calls a couple of days ago looks like another missed opportunity. Of course that's always easy to say after the fact. Like I've said before, no uptrend lines have been violated in the stock indexes so the trend is up. Gold continues to attract capital. That trend remains in place. The same things that have been working continue to work. We'll look to the unemployment report tomorrow for direction but it may be to the upside now matter what. We'll see.
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