Wednesday, November 28, 2012
It was a one day reversal to the upside today as the Dow opened lower and closed higher. The Dow gained 107 points on light volume. The advance/declines were 2 to 1 positive. The summation index continues to the upside. I was expecting a bit more weakness than what we have seen. But I could be wrong and often am. We should move off of the GDP report tomorrow. End of the month coming on Friday. The technicals for the stock indices are heading to overbought. GE was up 1/4 on light volume. We got the same type of intra day reversal here as well. We'll see if we get any follow through tomorrow. Gold took a hit today. The futures were off over $25. The US dollar closed a bit lower after being higher early on. The XAU followed the overall stock market higher by 1 1/8. ABX, GG and NEM all had fractional gains on average volume. One day doesn't make a trend but it was nice to see from the bullish angle that the gold shares outperformed the precious metal for a change. Mentally I'm feeling OK. A bullish reversal for the stock indexes today. We'll see if it can carry over for tomorrow. I don't think that we have seen the end of the near term weakness yet though. We'll see. Not a good day for gold but I am still in the bullish camp here going forward. Perhaps it will turn around tomorrow. That's a guess as usual. However the technicals for gold have turned down on the daily chart. We'll keep an eye on what happens overnight and wait for the GDP revision tomorrow morning.
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