Tuesday, May 28, 2013
We started off the week with a positive day as the Dow gained 106 points on light volume. The advance/declines were positive. We were up over 200 during the session. Not exactly sure what that means. The summation index continues lower. Perhaps we are forming some sort of distribution top but that has yet to be seen. The majority is still bullish here and until we see some type of decline the trend remains up. It's a short trading week leading up to the end of the month on Friday. Not a lot of economic data, with the GDP revision probably the most watched. GE was up a bit on good volume. We closed off of the highs here as well. No trades in mind for GE right now. Gold fell $15 on the futures as the US dollar had a strong day. We really still need gold to hold the crash lows for the bullish cause. The XAU only fell 1/2. ABX, GG and NEM were mixed with fractional moves on lighter volume. My October ABX calls are at break-even. Some kind of rally in ABX to close the month is really needed here for this trade to have a decent chance of working out in my opinion. Mentally I'm feeling OK. The stock indices are now oversold for a change. Not drastically but enough to support some type of rally. Gold had a down session and if the US dollar continues its rally that will not bode well for the price of gold. The fundamentals seem to favor a stronger US dollar at this time. We'll keep an eye on the overseas action and go from there.
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