Wednesday, January 15, 2014
Continuing higher as the Dow gained 108 points on good volume. The advance/declines were 2 to 1 positive. It looks like I may be wrong in my top building prognosis for the stock indices. The small stocks are breaking out to the upside and that is a positive. The summation index continues higher. The expiration week positive bias seems to be taking hold. We'll have to see how the rest of the week goes though. But higher prices on expanding volume is usually a positive sign. GE was up over 1/3 on average volume. The earnings due on Friday will probably be the next catalyst. Gold was off $4 on the futures but closed off of its low. This, despite a higher US dollar. Not sure exactly what that implies. The XAU rose 1 1/4. ABX and NEM had fractional gains, while GG was off a few cents. Volume was light. Not a lot of interest in the gold shares today with the market moving higher by over 100. I'm still considering the February calls here but probably after this week. Mentally I'm feeling OK. It looks like buying some OEX January calls on the decline Monday was the way to go. Hindsight is always profitable. Where we go from here is the next question. The short term technicals could support some more upside. However I have to say that prices for stocks are over extended in my opinion. I remain cautious for the stock indexes even if we hit new highs. We are closer to a top than to a bottom. Gold is hanging around the 50 day moving average. $1280 remains the near term target but the move higher recently has been anemic. I'm still keeping an eye on GG. We'll see what happens overnight and go from there.
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