Tuesday, May 07, 2013
Continuing higher as the Dow closes above 15000 for the first time in history. The most watched index gained 87 points on light volume. The advance/declines were 3 to 1 positive. Overbought and staying there on a short and medium term basis for the stock indices. The summation index continues higher. Nothing to stop this rally as there is no overhead resistance. It won't go on forever but you cannot fight the trend. It is a momentum run that we are on now. GE was up a touch on light volume. Stalling below the 50 day moving average here. No trades for now. Gold fell today, off $20 on the futures. The US dollar didn't do much today. The XAU fell 2 1/2. ABX, GG and NEM all had fractional losses of 1/2 or so. Volume was average but remains above average for ABX. It is expected for gold to retest its recent lows and the same goes for the gold shares. What happens after that will be the key for the October ABX call trade. It remains in the black for now. Mentally I'm feeling OK. It looks like another leg up has begun on the rally that began last November. Most stock indices are making new highs together and that is nothing but bullish. I certainly did not see this kind of up move coming when the year started. We'll see how long and how far it can go. Any decline continues to be bought. Gold was lower today and we'll see if there is any follow through tomorrow. Same goes for the gold shares. The best case scenario here for the bulls would be a sideways consolidation to work off the overbought condition. We'll see. As usual we'll keep an eye on things overnight and go from there.
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