Friday, September 13, 2013
It was pretty much a lackluster session but the Dow did tack on another 75 points to the upside. The advance/declines were positive and the volume was light. The retail sales number was less than expected. Still overbought on the stock indices. The summation index continues higher. It was a good week for the stock indices and we'll just have to wait and see on the Fed next week. I would guess that we'll see volatility pick up but you never know. You could build a case to go in either direction really. The market will let us know what's next. It won't be boring. GE lost a few cents on very light volume. Gold was off another $20 on the futures but came back in the aftermarket. The US dollar finished the session little changed again. The XAU was up 1 1/8 and has yet to break the up trend line that began in early July. Perhaps the gold shares will hold up here. ABX and GG had fractional gains, while NEM was flat. Volume was good. The weekly technicals for the gold shares have rolled over to the downside. Mentally I'm feeling OK. My October OEX puts are at a slight loss. Next week will probably determine the outcome for this trade. A positive reaction after the Fed could lead to new highs for the stock indexes. But as usual the markets will go where they want. But we won't stay overbought forever. Gold had a terrible week for the bulls and broke important support. May need some time to regroup here. Perhaps it's an early warning that the Fed will be coming out hawkish. Or maybe there will not be any military action by the US in Syria. Those are simply speculations. The technicals for gold have rolled over. Plenty of work to do over the weekend and then back at it on Monday. For now it's Friday afternoon and time for a break.
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