Friday, November 22, 2013
Higher we climb as the Dow gained 54 points on light volume. The advance/declines were almost 2 to 1 positive. The S&P 500 closed above 1800 for the first time. The small stocks are hitting new highs as well. The momentum continues to the upside and with the easy Fed policy, there is no end in sight. It will not end well, that's for sure. But you just don't know how high we will go before it does end. The summation index should be back to the upside after today. Thanksgiving week is coming up and that is historically positive. So sit back and enjoy the ride. GE was up 1/8 or so on very light volume. I'm still considering the January calls here if we see some weakness. Gold held steady today despite a drop in the US dollar. The trend for gold remains lower. The XAU was off 3/4. ABX, GG and NEM all had fractional losses on light volume. The weekly candlestick charts here now look bearish again. We are approaching the lows for the year and will have to see if they hold. Money is going everywhere except into gold. Mentally I'm feeling OK. I'd expect next week to be a light volume move higher for the stock indices. It will be a holiday week for sure and holiday mode trading. Still overbought on the stock indexes in whatever time frame you choose. No overhead resistance and nothing to stop the party from going higher. Gold is going nowhere to lower. I'm still looking at $1200 as the next stop. What happens there will be the key to direction going forward. The overall fundamentals are still lousy for gold. We could see a bounce from time to time though. That's it for this week. It's Friday afternoon and time for a break.
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