Thursday, March 27, 2014
Another day of indecision as the Dow fell 4 points on good volume. The advance/declines were positive. Volume was above average today. The market is still trying to figure out what to do here but the indicators are pointing down. The summation index is heading lower and the small stocks are relatively weak. Perhaps we can get a near term bounce but I do not expect any extended rallies for stocks. I could be wrong. GE was up almost 20 cents and remains at the apex of a wedge on the daily charts. Volume was a touch less today. Gold continues lower as the futures fell another 8 bucks. The US dollar was slightly higher. The XAU was up a buck today for a change. ABX and GG had fractional gains, while NEM had a fractional loss. Volume was light to average. I did place an open order for the May ABX calls but it wasn't filled. I'm leaving the order in overnight. Is this the bottom for the gold shares? I'm thinking that it is. I may have to adjust the ABX option order to get it filled but we'll see. Gold is getting close to my target of $1280. Mentally I'm feeling a bit tired. Still trying to figure out exactly what is going to happen in the stock market. I'm still a believer in lower prices on an extended basis eventually. We could continue to slosh around for a while. Sometimes the April tax season brings sideways activity. Gold continues to not see a bid but some bargain hunting took place in the gold shares today. The technicals for the gold issues are blown out to the downside. Even if we do see a bounce in the XAU, it may take a while to get something extended to the upside here. That said, I'd still like to try the ABX calls here. We'll keep an eye on the foreign markets tonight and finish off the trading week tomorrow.
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