Tuesday, May 21, 2013
The Dow gained 52 points today on average volume. The advance/declines were slightly positive. The overall stock indices were weaker than the Dow. Waiting on the Fed here. Tomorrow should be a market moving day. Which way is the question. The summation index continues higher. Still no overhead resistance for the stock indexes. Overbought, staying there and that condition persists. GE was up a dime on light volume. We made it to $23.75 today and we'll see what happens from here. A break to the upside would be bullish for the overall market. Gold fell back today as the futures lost 6 bucks and about that again in the aftermarket. The US dollar finished the day a bit higher. The XAU fell 2 7/8. ABX, GG and NEM all had fractional losses on good volume. No follow through to yesterdays gains in gold. My ABX October calls are slighty in the black. Mentally I'm feeling a bit tired, did not sleep well. Bernanke will blab and the Fed minutes will be released tomorrow. So there is potential for some volatility. There has been no stopping this rally and probably tomorrow won't matter either. It is a momentum driven move. Gold is still trying to hold the recent crash lows and so far it has. There are possible positive RSI divergences on the gold charts. If things hold together here, some type of longer term rally in gold could take place. We'll have watch what happens here closely. We'll see what happens in the overseas markets and take it from there.
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