Tuesday, November 27, 2012
Heading lower today and that isn't unexpected as the Dow fell 89 points on light volume. The advance/declines were negative. We are working off the short term overbought condition of the stock indexes. I would guess that the recently made lows would hold any decline but that is just a guess. The summation index is still moving in a positive direction. I feel as though we are simply taking a rest here but I do not expect any huge rally anytime soon either. GE was off almost a 1/4 on lighter volume. Nothing new to report here. Gold fell $7 on the futures as the US dollar posted gains today. The XAU dropped 3 3/4. ABX off 3/4, GG fell 1 7/8 and NEM shed 1/3. Volume was average for the gold shares. The ABX January calls that I own continue to lose value. Plenty of time for this trade to work out and I will hold these options at least into December. However I would like to see the price direction turn around at some point this week. Mentally I'm feeling OK. A couple of down days to start the week and I would not be surprised if the weakness continued just a bit more. We could be moving into a sideways trading range but only time will tell on that. Gold fell a bit today but we are still above the rising trend line that began at the beginning of the month. I would prefer to see the gold stocks taking the lead here but it hasn't happened yet. We'll see what tomorrow brings.
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