Wednesday, October 16, 2013
The expected last minute deal from Washington is now in place and the Dow rallied 205 points on good volume. The advance/declines were about 4 to 1 positive. Small stock indices hit new recent highs and that is bullish. The summation index is trending sideways but should start to move higher. Short term overbought for the stock indexes but that could last a couple of days with the option expiration on Friday. There is nothing in the way of higher prices going forward it seems at this point. We'll now get back to focusing on the economic data and earnings. GE was up an 1/8 or so and volume was light. Waiting for Friday here. Gold was up $9 on the futures with a slightly higher US dollar. The XAU did not follow and was off 1 1/8. ABX, GG and NEM all had fractional losses on light volume. Still no real interest in gold and the gold shares. Mentally I'm feeling a bit tired. With the budget/debt drama finally out of the way we'll have to pay attention to exactly when the tardy economic data is going to be released. Technically it looks like new all time highs are coming soon for the major stock indexes. There is no overhead resistance once we get past the previous highs and that should be soon. Gold has been in a down trend since late August and that down trend line remains in effect. There doesn't appear to be any catalyst to send prices higher. I don't know if I can hold on to the ABX November calls until the earnings report at this rate. We'll see. As usual we'll keep an eye on the overnight developments and go from there.
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