Wednesday, February 26, 2014
Still in a wait and see mode for the stock indices. The Dow rose 18 points on good volume. The advance/declines were positive. The summation index continues higher. We are in the same situation as yesterday and waiting for the market to decide which way it is going to go. I'm still a believer in higher prices despite the overbought condition. GE didn't do much and the volume was light. Thought about getting some calls here a few days ago but will probably not do that trade. Gold dropped today as the futures fell about $15. The US dollar had a good session for a change. The XAU lost 1 1/3. ABX, GG and NEM all had 1/4 or so losses on light volume. These issues are still due for rest. ABX and GG are in solid up trends for now. Mentally I'm feeling OK. Not much to report really. The stock indexes remain overbought. The small stocks have broken out and that is bullish. The Dow is the laggard here. Gold took a much needed breather here but is still overbought. The gold shares are due for a rest as well. I'll be looking at the gold share calls for April or May to be purchased next month. Patience is required. I may or may not have a decent trade set up for the March option cycle. We'll see what tomorrow brings.
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