Thursday, October 17, 2013
The Dow fell 2 points today but the overall market was much stronger. Volume was good and the advance/declines were about 5 to 1 positive. New highs in some of the major indices including the S&P 500. The summation index is heading to the upside. Still short term overbought and staying there. No resistance to move higher and expiration week concludes tomorrow. Awaiting the postponed economic data now that Washington is out of the way. Earnings are coming out as well. Nothing to derail the upside at the moment. GE was up 1/3 and the volume was pretty good. Could somebody know something about the earnings report due tomorrow? It wouldn't be the first time but we'll find out tomorrow. Gold actually had a stellar session on a very weak US dollar. The precious metal futures gained $40. Today gold broke out above the down trend on a daily basis that has been in effect since late August. The volume was decent as well. That is a bullish development for gold. The XAU managed a 4 1/2 point gain. ABX and GG rose 7/8, while NEM was higher by 1 1/8. Volume was average. My November ABX calls are back in the black. Mentally I'm feeling OK. The stock indexes continue higher as we wait for economic data to trade off of. Nothing in the way of higher prices for now. We'll see what happens next week. Gold had a nice upside breakout today. I don't know where that came from but the bulls will take it. If the dollar continues lower, it will be supportive for gold. The gold shares should go along for the ride. However, one day doesn't make a trend. We'll have to see more upside for gold and the gold shares near term to turn things positive there. Hasn't happened yet. We'll see if the foreign markets follow the US indices overnight and go from there.
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