Monday, April 14, 2014
We bounced around today as the Dow was up around 150, came all the way back to almost break even and then zoomed back up in the final hour. We finished the day up 146 points on light volume. The advance/declines were 2 to 1 positive. The small stocks are still under performing but at least things held up for today. Short term we may stabilize here since we are oversold but that's a guess. The market is still skittish but we are oversold. Expiration week usually has a positive bias and that may be the case for this week as well. A short week though as Friday is a holiday. GE was up 1/4 and the volume was light. Attempting to hold the 50 day moving average here. Gold rose on the tensions in the Ukraine resurfacing. The yellow futures were up $8. The US dollar was higher today as well. The XAU gained 1 1/4. ABX, GG and NEM were all higher by around 20 cents. Volume was light to average. Not a lot of interest for the gold shares despite the unrest overseas. I'm still considering the May ABX calls but may switch to GG. But who knows? The technicals for the gold shares here are mixed. Mentally I'm feeling OK. 3 days left for the April option cycle. I do not think I will be making any trades short term here. My guess is that we will be heading lower at some time this week for the stock indices. The summation index is still trending down. Gold has had a slow steady climb for the past two weeks. Overbought on the short term for gold itself. The technicals for the XAU are mid range. The more bullish scenario would have the gold shares in the lead. Perhaps patience is the proper course of action here. The gold share earnings will be reported in the May option cycle. We'll follow the overnight action and take it from there.
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