Wednesday, November 20, 2013
Lower again today as the Dow fell 66 points on light volume. The advance/declines were 2 to 1 negative. The stock indices dropped after the Fed minutes were announced. But the decline isn't really aggressive and it looks like we could head back up at any moment. Buyers are there for the dips. We will have to see if that mentality changes. The summation index is heading lower again. The short term technicals have rolled over for the indices. But it doesn't have the feel of a more extended decline coming up, despite the fact that we are overdue for one. GE was little changed on the day and volume was lighter than lately. I'll get some January calls here if we ever get oversold on a daily basis. Gold fell again as the US dollar moved higher on the Fed minutes. The precious metal futures dropped $15 in the regular session and that much again in the aftermarket. The XAU lost 2 2/3. ABX and GG were both off around 2/3, while NEM shed a buck. Volume picked up to the downside and that is never a good sign. No love for the gold shares and the stronger US dollar is no help for the gold bulls. Mentally I'm not feeling 100%. Another trip to the dentist today. Successful trading requires your full attention. There is no doubt about that. The small stocks acted better than the overall market today so perhaps we'll see some positive action tomorrow. That's a guess as usual. The Dow has been put on a temporary hold at the 16000 level. We are way past overdue for some kind of sustained decline for stocks. Gold continues to head lower and it looks like it could head down to the $1200 level. That would be the area to take a chance with the gold share calls again in my opinion. So we'll see about that in the days to come. We'll keep an eye on the overseas markets tonight to see if they follow the US market lower.
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