Tuesday, November 19, 2013
Sloppy is the way that I'd describe todays market action as the Dow fell 9 points on light volume. The advance/declines were 2 to 1 negative. Once again the overall market was weaker than the Dow. This fact underscores the idea that things aren't as strong as the Dow appears to be here. The small stocks are showing relative weakness and today the TRAN joined them. We are due for some type of decline. Todays market action should turn the summation index back down again. The overall longer trend remains up. However it could be time for a move back to the 50 day moving averages for the stock indices. GE was off around 1/4 on average volume. Due for some weakness here as well. Overdue you might say. Gold was up a buck on the futures, while the US dollar was little changed for the session. The XAU was flat on the day as well. ABX and NEM had slight fractional gains, while GG was basically unchanged. Volume here was light. I'm looking out to the January calls on the gold shares but in no hurry to do anything. Gold itself remains in a funk. Mentally I'm feeling OK. We'll get retail sales, the CPI and existing home sales numbers out tomorrow. We'll see how the market reacts to the data. Still due for some price weakness in my opinion. The Dow is taking the lead lately and that isn't bullish. The small stocks usually lead the way both up and down. They have shown relative weakness lately. Gold isn't going anywhere though it has remained oversold for over a week now on the daily charts. I may be finished trading gold for this year anyway. We'll see what tomorrow brings.
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