Tuesday, October 29, 2013
Higher and higher we climb. The Dow gained 111 points on average volume. The advance/declines were positive. The summation index continues higher. The economic data reported today came in about where expected. We'll get GDP and the Fed tomorrow. Overbought, staying that way and I certainly don't know how long this can last. The Dow will probably hit a new all time higher tomorrow. The small stocks are not in the lead now and that means we should be near the end of this run that has been in effect since the second week of this month. It is getting to be almost parabolic and that never ends well. We'll enjoy it while it lasts. GE was up 1/8 and the volume was average. No trading ideas here at the moment. Gold dropped around $7 on the futures as the US dollar showed a bit of strength today. The XAU fell 2 1/2. ABX off 1/2, GG down 7/8 and NEM lost 3/8. Volume was light. The gold shares needed a breather and that is what we are seeing now. My November ABX calls are still showing a profit but not as much as last week. The earnings on Thursday will determine the outcome of this trade. Mentally I'm feeling OK. I doubt that we will see any surprises out of the Fed tomorrow. Perhaps we'll get some selling on the announcement due to the extreme overbought condition of the stock indexes. But that's a guess as usual. There's really nothing in the way of higher stock prices looking out into the future. Gold is hanging around its 50 day moving average line. A move above there would be a positive. I'd like to see the gold shares bounce back tomorrow but that could be wishful thinking. We'll keep an eye out on the overnight action and go from there.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment