Wednesday, October 24, 2012
The Dow closed down 25 points today on light volume. The advance/declines were negative. The Fed came and went with no real market reaction. That was anticipated by most of the players. The stock indices tried to rally today but to no avail. We are short term oversold so some type of bounce should appear. But the trend is down and support lines have been violated. The Dow transportation index was down heavy today. GDP on Friday and that should be the next market mover. GE was flat today on average volume. Oversold here as well. Gold fell again today, off $7 on the futures. The US dollar was flat today. The XAU fell 3 1/8 as near term support appears to have been broken. ABX down 3/8, GG lost 1 1/2 and NEM fell 1 1/4. Volume picked up a bit and that isn't positive going forward. The gold shares look like they're breaking down here on the daily candlestick charts. ABX has held up better than the rest lately, however that could change at any time. I still have the open order in for the January calls there but I might adjust it overnight. Mentally I'm feeling OK. No buyers lately for stocks. I don't feel any sense of impending doom here but the summation index continues lower. Oversold on the stock indexes and that is a condition that needs to change or things could get dicey. Oversold and staying there is a recipe for downside surprise. Gold has gotten to $1700 and it really needs to hold on here. There is some other support at $1675 but I would not like to see that happen. The market will go where it wants though. Commodities in general are falling now. I'll have to ponder the ABX trade tonight and decide what to do. We'll see if we can mount some type of rally tomorrow.
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