Tuesday, March 19, 2013
A mixed market today as the Dow gained 3 points while the S&P 500 and the NASDAQ were lower. The advance/declines were negative and the volume was average. The stock indices are still trying to digest what is going on in Europe. Maybe we can get another push higher with the Fed tomorrow but I'm a believer that we are near the end of the rally. I could be wrong. We will have to see what happens tomorrow. Technically the stock indexes remain overbought but not so much so on a short term basis. The sock market will take its cues from the Fed tomorrow. GE was up almost 1/8 on light volume. No trades here for now. Gold was higher again. The futures here rose 6 bucks. The US dollar was up today as well. The flight to safety trade is attracting capital. As usual the gold shares continue not to participate. The XAU was flat on the day. ABX and GG barely budged, while NEM was up 1/3. Volume was average. I'm still in the April ABX call trade that is a loser. Mentally I'm feeling tired, did not sleep well. The problems in Cyprus appear to be a blip on the radar screen for now. The selling we've seen has been met with buyers. Money continues to flow into stocks. I think we are building a top here. The summation index has rolled over but not decidedly so. The next few days will help tell the story. But I still don't think that it is time to be a buyer of stocks. We'll see. Gold itself has grudgingly moved higher but the gold shares continue to lag. This will end at some point but I certainly don't know when. All eyes and ears will be on Big Ben tomorrow. We'll keep an eye on things overnight and go from there.
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