Tuesday, April 23, 2013
The market roared to the upside today as the Dow gained 152 points on average volume. This was despite a mini flash crash halfway through the session. The advance/declines were 4 to 1 positive which should move the summation index back to the upside. I did not expect this type of strong move here. Perhaps my negative thesis on the stock indices is wrong. I'm sticking with it for now. We'll see how the market reacts if we get to the previous highs. We are definitely within striking distance. The short term technicals for the stock indices are turning back up. GE was up 1/8 and the volume continues very heavy. There is a huge downside gap on the daily chart here and it looks anything but positive. We're hovering at the 200 day moving average. Gold was off $7 on the futures and more in the aftermarket as the US dollar had a strong day. The XAU fell 2 points. ABX off 3/8, GG dropped 3/4 and NEM lost a buck. Volume remains heavier than normal here. Earnings out tomorrow morning for ABX. My October ABX calls have moved into the red. Anything is possible tomorrow and this issue remains deeply oversold on all the technicals. Mentally I'm feeling OK. The stock indexes had a mini crash today that lasted about a couple of minutes. This is the trading environment we now live in. It is a computer driven game. That is the reality and there is no getting around it. The positive performance of the stock indices today was impressive. However until all the indices break out to new highs I would advise caution about getting too bullish now. Gold had a nice bounce after the crash but it is probably due to retest the recent lows. What occurs there will be the key for the direction of the precious metal. The reaction to the ABX earnings will be my main focus for tomorrow.
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