Thursday, September 26, 2013
Got the expected bounce today as the Dow rose 55 points on light volume. The advance/declines were about 2 to 1 positive. Short term oversold for the stock indices still, even with todays advance. Probably more upside to come. The summation index continues higher. Waiting on a deal for the US budget and when that happens I'd expect some type of rally to ensue. I could be wrong but maybe not in this case. GE was flat on the day with average volume. No trades here for now. Gold fell today on a higher US dollar. The precious metal futures lost $12. The XAU lost 1 1/2. ABX, GG and NEM all had fractional gains on light volume. I did place an order for some November ABX calls during the session. It wasn't filled and I canceled it. I'll consider this trade again tonight. ABX remains above the up trend line from July and the 50 day moving average on the daily charts. My October ABX calls are still showing a big loss. However the weekly candlestick chart for ABX still has the potential reverse head and shoulders pattern. If this pattern plays out, the gains will be substantial but maybe not until November. Mentally I'm feeling a bit tired. We'll finish out the trading week tomorrow. Not a lot to report here really. We've come off of the all time highs set after the Fed meeting. We'll have to wait and see if we get a test of the highs on lighter volume and a lower McClellan oscillator reading. The stock indexes are still short term oversold. Gold has been sideways for 2 weeks and the gold shares appear to be in the doldrums after last weeks huge one day pop. I'll consider chasing the ABX call trade out another month to November tonight. We'll keep an eye on the overseas markets overnight along with any news out of Washington on the budget impasse and go from there.
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