Monday, October 14, 2013
The Dow continued higher as we wait for some kind of deal out of Washington. The most watched index gained 64 points on semi-holiday light volume. The advance/declines were positive. Getting to short term overbought technically. The summation index has moved back to the upside. Option expiration week as well. It's still a headline driven affair for now. Once we get past this drama, we can refocus on the economy. Or more likely move on to the Fed drama. I'd still be cautious here despite the huge run up recently. It might be a sell the deal market. Time will tell. GE was flat on the day and the volume was light. Earnings on Friday. Gold was up 8 bucks on the futures as the US dollar was slightly lower on the day. The XAU was up 1/2. ABX, GG and NEM had slight fractional moves one way or the other on light volume. Still no interest in the precious metals. My ABX November calls are in the red. Mentally I'm feeling OK. Today was quiet despite an early sell off. Some foreign markets were closed and it was Columbus Day here in the US. The markets are in stand by mode prior to whatever kind of deal is reached in Congress. This soap opera should be completed this week. Gold remains unloved. It looks like the ABX call trade was not the right idea for now. Earnings due there at the end of the month. We'll see if there is any news tonight on the budget/debt gridlock and go from there.
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