Friday, November 15, 2013
Another day, another record as the Dow gained 86 points on light volume. The advance/declines were almost 2 to 1 positive. This should turn the summation index back to the upside. Very overbought here on all levels but it doesn't seem to matter. I'm not sure just how long this can go on but it's usually longer than you think. The easy money policy continues to lift equity prices. Until this policy ends, I suppose there is not telling how far we can go. Don't fight the trend. It is hard not to when all the technicals are blown out to the upside. The technicals say get short but that strategy isn't working. No overhead resistance and we are in a favorable seasonal period for stocks. Enjoy the ride. GE was up 1/4 and the volume was good. Short term overbought here for a month and a half. Hard to trade that condition. Gold was little changed on the futures as the US dollar was lower. The XAU fell 1 1/8. ABX, GG and NEM all had fractional losses on light volume. No trades in mind for the gold shares at this time. Still oversold here technically. Mentally I'm doing OK. Expiration week came through with its usual positive bias. I'd say we're due for a rest here but I've been saying that for a while. Money is still finding a home in stocks. All declines are still being bought. I do not see any changes in the near future. Gold may have put in a short term bottom on the weekly candlestick chart but we'll need to see next weeks price action to be sure. Definitely oversold there. The fundamentals however remain negative for gold at this time. I'll be checking the charts over the weekend in hopes of coming up with some ideas for the December option cycle. For now it's Friday afternoon and time for a break.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment