Monday, September 08, 2014
A mixed bag to begin the week as the Dow fell 26 points on light volume. The advance/declines were negative. The NASDAQ showed a gain on the session and that's bullish. The small stocks are out performing and that is not a negative sign. The summation index is trending sideways at the moment. Not a lot of economic reports due out this week. Retail sales on Friday being the biggest. GE was off a couple pennies and the volume was light. Light volume is the general theme for the market right now. Gold continued to move lower. The precious metal futures fell around $13. The US dollar continues to move higher and that is bearish for gold. The XAU lost 2 1/2. ABX off 3/8, while GG and NEM dropped 2/3. Volume is good to the downside for the gold shares. Although my ABX call trade goes out to October, it is practically worthless. Another loser trading the gold shares this year. Mentally I'm feeling OK. Although the market sold off a bit today, there always seems to be plenty of buyers on the sidelines. We've been sideways for about two weeks but at this rate it appears that we will eventually break out to the upside. That is what the small stocks are saying. Perhaps tomorrows AAPL product announcement will be the catalyst for higher prices. Technically on the major stock indices the short term technicals have started to roll over. Gold is headed to $1240 and we'll see what happens when it gets there. The US dollar is overbought, staying there and now moving up in a straight line. That won't last forever but the trend is up until proven otherwise. We'll keep an eye on the overnight action and see what happens tomorrow.
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