Tuesday, May 14, 2013
It's momentum, it's to the upside and that is all we need to know for now. The Dow gained 123 points on average volume. The advance/declines were 2 to 1 positive. We opened higher and kept on going. New highs all around. The summation index continues to the upside. The positive option expiration bias is in place. I suppose we will see just how far this rally can go. No sign of a top in the game now but the momentum runs to the upside never end well when they do. For now we simply enjoy the ride. GE was up 1/8 or so on average volume. Still hanging around the 50 day moving average. GE isn't at a new high and that could be telling going forward. Or not. Gold wasn't participating in todays rally as the precious metal futures fell 10 bucks. The US dollar had a good session to the upside. The XAU fell 1 1/8. ABX, GG and NEM had fractional moves one way or the other on light volume. The money flows are not to the gold shares right now but at least they aren't going straight down anymore. I still consider the recent action in the price of gold as the start of a retest of the crash lows. This process could take a couple of weeks or more. Mentally I'm feeling tired, did not sleep well. New highs in the stock indices sometimes on a daily basis. There is no overhead resistance. It continues to be a great rally. There is no fighting the flow of money into stocks. Perhaps the 12 year sideways movement in stocks is over. It sure feels that way. Gold continues to be unloved but there is plenty of time for the ABX October call trade. It remains profitable for now. Plenty of economic data in the next 3 days. We'll see what happens tomorrow.
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