Friday, October 11, 2013
Good follow through to yesterdays extreme upside as the Dow gained 111 points on light volume. The advance/declines were around 3 to 1 positive. Still no debt or budget deal out of Washington but the market always knows more than the rest of us. Today should turn the summation index back to the upside as it was still lower even after yesterdays big gain. The trend has changed back to higher prices. Earnings season is underway but overall the stock indices should move higher. The small stocks continue to outperform and that is bullish. We've got option expiration week coming up and it usually has a bullish bias. The only thing that could derail things now is if there isn't a US debt deal but Thursday. A deal will get done. GE was up 1/8 or so and the volume was lighter. Earnings out here in a week. Technically not overbought just yet so there is probably more room to go on the upside. Gold fell again today as there is no interest in owning the precious metal. The futures fell over $25 despite a weaker US dollar. The XAU dropped another 1 3/4. ABX, GG and NEM all lost 2/3 on good volume. My November ABX calls are now in the red. Oversold and staying there for the gold shares and that isn't a good sign for the bulls. This already looks like another losing trade for me. Mentally I'm feeling OK. So the market has spoken and it appears the next stop will be new all time highs for the stock indexes. Unless we get some bad news out of Washington over the weekend. It is still a headline driven environment. However the technicals have now said there should be higher prices unless there's a surprise. We probably should listen to that. Gold continues lower with no buyers. It doesn't appear to have any news that will send it higher. The gold shares haven't dropped as much as gold lately but that just means that they are losing less. Perhaps I should just stop trading the gold shares since I have certainly lost more there than gained. It's something to consider. Plenty of charts to check out over the weekend. Plus an eye and ear on the doings in Washington. For now it's Friday afternoon and time for a break.
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