Tuesday, August 26, 2014
Nothing but good news from the economic numbers today and that helped the Dow to a gain of about 30 points on light volume. The advance/declines were 2 to 1 positive. The summation index continues to the upside. No overhead resistance for the major stock indices and daily new all time prices are the norm. I should have not tried the September OEX put trades but hindsight is always correct. GE was off almost 20 cents and the volume slightly picked up. If GE is the leader once again we should start to see some weakness in the indexes. Hasn't happened yet. Gold found a bid today as the precious metal futures rose six bucks. The US dollar was up yet again. The XAU gained 2 1/8. ABX, GG and NEM all had fractional gains on light volume. Still waiting on the positive seasonal factors for gold to kick in. Mentally I'm feeling OK. Slow volume continues as we reach the end of summer. This week is playing out as expected with a move higher to begin the week. I don't see any bumps in the road yet for this rally. I'm just hanging on to the losing positions that I own and waiting for next week. Without a doubt overbought here for the stock indices. But the market can sometimes stay overbought for long periods of time and we have yet to see any sellers arrive on scene. Gold is hanging in there so far this week. However the fundamentals right now are not bullish. Plenty of time still left on the ABX call trade though. We'll keep an eye on the foreign action overnight and take it from there.
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