Wednesday, October 03, 2012
Muddling through the days here as the Dow rose 12 points on what now passes for average volume. The advance/declines were even. The overall market was stronger than the Dow again. We also rose in the final hour and that is short term bullish. Not much for me to say here as it appears that we are simply in a holding pattern awaiting the Friday employment report. I'm sticking with my bullish resolution. I may try the OEX calls tomorrow on weakness. GE was up 1/8 on light volume. Nothing doing here but we remain overbought. Gold was up a bit today as was the US dollar. The XAU fell 2 3/4 as the gold shares diverged from the precious metal. ABX, GG and NEM all had fractional losses on very light volume. I have yet to put in an open order for some calls here as we haven't reached an oversold condition. However I will be getting some calls eventually because the trend here is up and I don't think that it's over. Mentally I'm feeling OK. So we wait for Friday and that is the next market moving event. A little over 2 weeks left in the October option cycle. My thinking remains that higher prices are in the offing but I could be wrong. The summation index continues lower but prices haven't followed. The uptrend lines on the indices have not been violated yet either. The presidential re-election rally remains in place. Gold has been moving sideways for 3 weeks. A rally in the stock market may not mean a rally in gold though. We are almost back to the uptrend line in gold that now is at the 1760 level. We'll see if it holds.
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