Wednesday, January 08, 2014
A mixed market today as the Dow fell 68 points on average volume. The advance/declines were negative. We did come back in the final hour and that is positive. The small stocks were higher on the session and that is positive. So is the summation index still in a rising mode. I do expect more upside in the coming days for the stock indices. The employment report should be the next catalyst for market movement. We got the Fed minutes today with no real surprises. Technically getting more oversold on a shorter term basis somewhat. Regardless if we do see some rally here it should be sold into. Closer to some kind of top in my humble opinion. GE was off a dime and the volume was light. If GE is a precursor of events we'll be heading lower sooner rather than later. Gold dropped again today, another 5 bucks or so on the futures. The US dollar was slightly higher. The XAU fell 1 1/8. ABX and GG were down 1/3, while NEM shed 1/2. The daily technicals for these stocks have now rolled over to the downside. I did once again place an order for the January GG calls but was not filled. It is looking like this trade is not the way to go here. I may go out to the February contract or simply pass on this idea. I need to check the charts tonight again. Mentally I'm feeling tired as my daily schedule has been changed for this week. It is important to be in the best physical and mental shape as possible to play this game. It seems to me that the stock indexes are about to head higher in the short term. We've had plenty of time to digest the gains of late December. Even if we do hit new highs in the next few days, I don't think that it will last. Gold had a bounce and now we are drifting lower. Attempting a trade here with only 7 days left in the January option cycle is pretty risky. I still may give it a try. The gold shares remain near the resistance down trend line at around 87 for the XAU. A break above that area will mean higher prices rather quickly. However we haven't gotten through there yet. Points to ponder this evening. If a trade is to be done, it will have to happen before the employment numbers on Friday I feel to have the most effect. I could be wrong and often am. I'll decide what to do tonight. We'll keep an eye on the foreign markets overnight and go from there.
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