Monday, April 28, 2014
Bouncing around today and the Dow finished with a gain of 87 points on heavy volume. The advance/declines were slightly positive. Not sure what to make of todays price action but we did finish well off of the lows. The summation index is neutral. Plenty of data to digest this week, including GDP, employment and the Fed. So we can expect some volatility going forward. The technicals for the major indices are still overbought while the small stock technicals are mid range. You can make your case either way. GE was up over 1/8 on average volume. Good relative strength for GE here. Perhaps GE is telling us all will be OK for the stock indexes for now. Gold was off a couple of bucks on the futures and a bit more in the aftermarket. The US dollar was slightly lower as well. The XAU fell almost 2 points. ABX off 1/2, GG lost 1/3 and NEM shed 1 3/4. Volume was good. The proposed deal between ABX and NEM fell through. This led all the gold shares lower. My May ABX calls are now slight losers and the daily chart here looks bearish. It looks like this trade is going to hinge on the earnings report on Wednesday morning. I can't say that I'm feeling confident at this point. Mentally I'm doing OK. The small stocks continue to lag and that isn't a positive sign. When the Dow is leading the way, it usually means we are at the end of the road for any sustained rally. We will have to watch for the reactions to the data coming out this week. Gold stopped right at the short term down trend line from March. We really need to get through there with some volume to get gold moving higher. Earnings due for both ABX and GG this week. That should get the gold shares moving. Todays developments were not positive though. We'll keep an eye on the overnight action and take it from there.
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