Friday, July 26, 2013
The Dow made an impressive comeback after being lower by 150 points during the session. The most watched index finished the day with a gain of 3 points on very light volume. The advance/declines were negative. The market is acting as though it wants to move higher here. Perhaps next week we can get above 1700 on the S&P 500 and start looking for some OEX puts. Maybe some negative divergences will start to appear. Hasn't happened yet. Today was interesting to be sure, even with the light volume. GE was flat on the day with volume nothing special. Gold was off about 8 bucks on the futures, with the US dollar slightly lower. The XAU was up almost a point. ABX, GG and NEM all had fractional gains to the upside. Volume was heavy in NEM which reported lousy earnings. NEM sold off and then came all the way back plus some. The gold shares are holding up here despite bad news. That is a positive moving forward. My October ABX calls are still in the black. Mentally I'm feeling OK. Plenty going on next week for the stock indices. We've got the Fed, plus GDP and Fridays employment report. So things could get interesting. I'm not sure exactly what to expect. I'm hoping for one more run to the upside but the markets always go where they will. TRAN was higher today and that could be an indication of things to come. We're still short term overbought for the stock indexes. Gold had and OK week but it seems like we are stalling here. Same action in the gold shares as well. ABX reports earnings next week and we all know they will be bad. We'll see if the stock can hold up like NEM did today. It's anybodies guess really. I'm going to try and hold on to this trade but you never know. Plenty of charts to check over the weekend and potentially a big coming week for the markets on tap. For now it's Friday afternoon and time for a break.
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