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Tuesday, December 31, 2013

We finished off the year with a new closing high as the Dow gained 72 points on very light volume.  The advance/declines were 2 to 1 positive.  We'll take a day off tomorrow and then begin trading for 2014.  The stock indices remain overbought on a short and medium term basis.  A decline is due at any time.  We most likely will continue a bit higher in the next few days but caution is advised.  The summation index is heading higher and that is bullish.  GE was up 1/8 and the volume was OK.  We've reached $28 here.  Gold was up a bit on the futures as was the US dollar.  Gold was lower early in the session but came back.  The XAU rose 1 3/4.  ABX up 1/2, GG gained 3/4 and NEM added 1/8.  Volume was good for the gold shares.  I did place an overnight order for the January GG calls but it was not filled.  There is now a bullish engulfing candlestick for the daily GG chart.  If we get some weakness on Thursday here I may still attempt this trade, however it may be too late.  Mentally I'm feeling a bit tired, did not sleep well.  How long can this rally last?  Longer than I think perhaps.  But I must say some of the technicals are really over extended here and the bullishness is extreme by some accounts.  The stock indexes are overdue for some decline.  Gold is trying to hold the $1200 level and has succeeded so far.  Any gold share trade now has to be short term.  I'll check the charts here again with the day off tomorrow.  We'll keep an eye on any overseas developments and be back at it on Thursday in the new year.  2013 is a year that I'd like to forget.  My trading account shed 30% and my win % was worse than that.  I'll start 2014 with a clean slate and try to get things right again.

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