Tuesday, January 22, 2013
Continuing higher as the Dow gained 62 points on average volume. The advance/declines were 2 to 1 positive. Overbought and staying there. It seems that even the slightest decline finds buyers these days. I'm not sure how long this can last but you cannot fight the trend. I would expect to see some weakness here but I've expected that more than once this year and it hasn't happened. The summation index continues to the upside as well. The momentum rally is intact for now. GE lost a nickel on good volume. I'm leaving in my open order for the February GE calls. Still waiting for the snap back from breaking above the declining tops line from October. If and when that occurs, then the order will probably be filled. Gold is in rally mode as well. The futures gained $6 as the US dollar was lower today. The XAU followed the market, higher by 2 7/8. ABX and NEM up 3/4, and GG gained 1 1/8. The volume was good to average. I'm also leaving in the open order for the February ABX calls as well. The gold shares have been moving sideways for about 3 months. The breakout should be a pretty good move once it gets started. The question is, which way? Mentally I'm feeling OK. The stock indices have been going practically straight up since 2013 began. How much longer can this last? I don't know. Not a lot of economic data out this week. Money continues to flow into stocks. Gold has rallied back to the 50 day moving average. That could provide some near term resistance. We'll keep an eye on overseas markets overnight and go from there.
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