Thursday, November 07, 2013
Moving to the downside today as the Dow fell 153 points on heavy volume. The advance/declines were about 4 to 1 negative. The summation index is now heading lower. A decline is in order for now as we had the signs of one coming in recent days. GDP was better than expected but the market was in the mood to fall. We will have to see how long it lasts. The small stocks had announced lower prices were on the way. Support comes in at around 1700 on the S&P 500. GE had a one day reversal to the downside. It fell 1/4 on heavy volume. Perhaps we will get a chance to try the calls on a pull back to $25. Hasn't happened yet. Gold dropped as well as the US dollar had a good day despite being short term overbought. The precious metal futures lost $11. The XAU fell 2 1/2. ABX off 1/8, GG dropped 3/4 and NEM shed 5/8. Volume was average for the gold shares. The short term technicals have turned back down for the gold shares. I have no trades in mind here at the moment. Mentally I'm doing OK. One day doesn't make a trend but the feeling here is that this is the start of some sort of decline. I do not know how long it will last. I will say that today a company called Twitter went public and it was all the rage of Wall Street. It traded well above its offering price amidst plenty of hype. This, for a company that is losing money and may not turn a profit until 2015. This is the kind of market action you see at tops, not bottoms. It is not quite the internet frenzy of around a decade ago but you get the idea. We'll see if the employment report tomorrow can turn things around back to the upside. Gold remains unloved and a non performing asset. The gold shares have been laggards all year. The recent upside in the US dollar does not bode well for these issues near term. We saw the reaction to the GDP number today from the market. We'll see what happens with the jobs numbers tomorrow.
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