Friday, November 08, 2013
The market exploded to the upside on a better than expected jobs report. The Dow gained 168 points on good volume. The advance/declines were positive but not as much as you would expect with a 168 up move. We basically gained back all of what we lost yesterday. We will be looking for follow through on Monday. It will be expiration week so the usual upside bias should be in effect. I was looking for more of a decline than what we saw yesterday but the market speaks and we must listen. I guess there is so much liquidity out there that it needs a place to go. You cannot fight it. GE was up 3/8 and the volume was lighter than lately. The daily chart now has a bullish engulfing pattern, which implies higher prices. Gold dropped again today on a stronger US dollar. The gold futures fell over $20 and cracked the $1300 level. It was a negative week for gold. The XAU actually gained 3/4 though. Money needs a place to go. There is no other reason for anybody to be purchasing gold stocks when the metal is breaking down. ABX, GG and NEM all had slight fractional gains after selling off early in the session. Volume was average. The technicals for the gold shares are oversold here on a short term basis. Mentally I'm feeling OK. I was looking for a much longer and deeper decline than what we have had here. But with todays market action there is a chance that we are already heading back up to new highs. The summation index hasn't turned around yet though. Maybe we'll hold things up for another week and then see some better selling. That's a guess as usual. The overall market was back in the lead today and that is bullish. Plenty to ponder over the weekend. Gold remains dead in the water. The gold shares did turn around today but I'm not sure if that means anything. I'm reluctant to take on any kind of trade at the moment. Confidence lost is not the way to get ahead in this or any other endeavor. I'm still trying to regroup after the latest ABX trade fiasco. It's been a tough trading year. But for now it's Friday afternoon in the autumn and time for a break.
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