Wednesday, October 23, 2013
Slight downside movement today as the Dow fell 54 points on good volume. The advance/declines were negative. A pause was certainly due for the stock indices. We'll have to see if it develops into something more but I doubt that for now. The summation index continues higher. The overall market was weaker than the Dow for a change. More backing and filling is the prediction here. The trend remains up despite the short term overbought condition. GE was off 1/3 on average volume. If we make it back to roughly the $25 level, I'll be looking at the calls there. Gold was off 8 bucks on the futures as the US dollar didn't do much today. Gold is stalling at the 50 day moving average and that is not unexpected. Some sideways consolidation would be healthy for a continued move higher. The XAU fell 2 1/2. ABX and GG were off around 1/2, while NEM dropped over 1 1/8. The gold shares were technically expected to head back to the down trend line that was just broken. However the fall in NEM is worrisome for the bullish cause. The volume was lighter today on the drop. It will be something to keep an eye on. Mentally I'm feeling OK. Still overbought for the stock indexes. Plenty of economic data due in the next 2 days. I'd expect some more sideways activity but you never know. We still need to digest the recent run up. Gold will probably move sideways for a couple of days or so as well. The gold shares were a bit weaker compared to gold today and that isn't a positive. We'll keep an eye on the overnight action and see the reaction to the data tomorrow.
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