Tuesday, March 25, 2014
Back and forth as the Dow was up 91 points on light volume. The advance/declines were positive. I'm still not sure what to make of the recent market action here. The summation index is still heading lower though. The small stocks remain relatively weaker as well. It isn't exactly a bullish scenario. I'm remaining in the cautious camp for now. GE gained over 1/4 on average volume. GE is now above its 50 day moving average. Perhaps GE is leading the way but that remains to be seen. Gold bounced around but closed flat on the session. The US dollar was flat as well but finished well off of the highs for the day. The XAU was up 2/3. ABX, GG and NEM were flat as well on light volume. A halt in the recent decline for gold today. We'll see how long that lasts. Mentally I'm feeling OK. The market still seems to be trying to make up its mind here on what to do. It makes for a treacherous trading environment. There is no urgent need to do anything here and there is not a solid technical signal that I can see. The major stock indices are moving sideways. We'll wait for a valid signal and go from there. Gold and the gold shares are in a decline and the technicals are oversold on a short term basis. I'm trying to remain patient here and am still looking at the ABX May calls for the next trade here. I am trying to let this week pass before purchase. We'll watch the overseas action tonight and see what tomorrow brings.
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