Wednesday, March 05, 2014
Taking a breather after yesterdays run up. The Dow dropped 35 points today on light volume. The advance/declines were about even. Waiting on Fridays jobs report. The overall market was stronger than the Dow and that's a positive. There wasn't any market noise from the Ukraine today. I'm still looking for higher prices near term. But the market will not stay overbought forever. GE was up 1/4 and the volume was light. Right on the 50 day moving average now for GE. Perhaps the March calls were the proper play here. Too late now. Gold didn't do much today, up a couple bucks on the futures. The US dollar was little changed as well. The XAU did rise 1 1/2 though. Perhaps the gold shares are ready to take the lead again. ABX was flat, while GG and NEM gained 3/8. Volume was light. It's possible that the gold shares are ready to begin another leg up here. However I am going to remain on the sidelines for now with respect to the gold share calls. Mentally I'm feeling OK. I'd not expect much from the stock indices tomorrow ahead of the employment report. Last month the preceding Thursday ahead of the report had a rally and it continued on Friday. I doubt that we'll see a repeat of that. That's a guess as usual. Gold is still due for a rest in my opinion. The gold shares showed some life today but the volume was light. One could make a case that the prior couple of weeks was a consolidation before we move higher in those stocks. Time will tell. We'll follow the overnight action and continue from there tomorrow.
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