Monday, November 18, 2013
A mixed market indeed, as the Dow gained 14 points on light volume. The advance/declines were negative. The overall market was much weaker than the Dow. The small stocks led the way lower. The sell off was late in the session which doesn't bode well for tomorrow. One day doesn't make a trend but this market has been way overdue for a pullback. The McClellan oscillator did turn positive on Friday though. The short term technicals remain overbought for the stock indices. The Dow did reach 16000 for the first time today, so perhaps that was a nice round number to take some profits. We'll see. GE was flat on the day and the volume was good. This stock probably needs a rest as well. Overbought, staying there and that can't last forever. Gold fell today as the precious metal futures were off $15. The fundamentals here remain bearish. The US dollar dropped just a bit. The XAU lost 1 7/8. ABX, GG and NEM all had fractional losses on average volume. No trades in mind here for now. Perhaps if gold gets back to the $1200 level I'll try the gold shares again. Mentally I'm feeling OK. Plenty of economic data out on Wednesday and Thursday of this week. That could get things moving again one way or the other. I'd expect the major players to do their fair share of trading this week. Next week is a holiday shortened affair with people taking time off. Overdue for some selling for the stock indexes in my opinion. But I've said that before. The overall trend remains up. Gold is still going nowhere fast. The weekly candlestick chart did show some promise but not if we just head back down this week. Not a good start to the week for the gold bulls today. We'll keep an eye on things overnight and go from there.
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