Thursday, February 27, 2014
Trying to get some upside going as the Dow gained 74 points on average volume. The advance/declines were 2 to 1 positive. The summation index continues higher. The new Fed head, Janet Yellen, spoke but didn't say anything. Sounds like she is perfect for the job as were her predecessors. Still overbought and still moving up for the stock indices. Sounds like a broken record but you cannot ignore the price action. It appears the last couple of days were a pause before moving higher. GE rose almost 1/4 however the volume was light. Still below the 50 day moving average. Gold was up a few bucks on the futures, while the US dollar was off a bit. The XAU drifted lower by 1/8. ABX, GG and NEM were all little changed on light volume. A waiting game now for the next gold share call trade. Mentally I'm feeling OK. It feels like the stock indexes are poised to move higher now. We closed near the highs for the session and that's bullish. The small stocks continue to lead the way. One day left in the week and the month. Perhaps the beginning of next week and month will see some positive money flows. Like I have already stated, unless we get a dramatic turnaround the trend is up. Gold needs a rest and perhaps this is the beginning of it. March is not a good month for the price of gold historically. The ideal scenario is getting long some gold share calls at some point in March. That is my theory at the moment. We'll see if the foreign markets follow the Dows lead upwards overnight and close out the trading week tomorrow.
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