Tuesday, September 16, 2014
Turnaround Tuesday as the Dow gained 100 points on average volume. The advance/declines were 2 to 1 positive. Fed chatter was the reason for todays gains but the oversold nature of the market was the technical clue. The McClellan oscillator was near minus 200 yesterday. We'll get movement on the Fed statement tomorrow. The summation index is still heading lower despite todays gains. My remaining September OEX puts are practically worthless. It's anybodies guess which way we head tomorrow. GE rose over 1/4 on better volume. My September puts here are worthless. Gold was up a buck or so on the futures. The US dollar was lower today. The XAU gained 3/4. ABX and GG were up 1/8, while NEM was flat. Volume was OK here. Gold may move on the Fed tomorrow but the underlying bearish fundamentals will remain. I'm still looking at some January gold share calls eventually. Mentally I'm feeling OK. Tomorrow will tell the story for the stock indices. If we move higher, then most likely new highs will be in the near future. If we give up todays gains, then perhaps the long awaited correction will be underway. Regardless of what is said tomorrow by the Fed, interest rates really have no place to go but up. With rates at zero, what do you expect? Eventually the market will react. Gold remains unloved. All eyes and ears on the Fed tomorrow.
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