Tuesday, August 11, 2015
Back to the downside today as the Dow fell 212 points on good volume. The advance/declines weren't even 2 to 1 negative though. China devalued the yaun overnight and that caused selling around the globe. We're still stuck in a trading range with respect to the S&P 500. I'm looking for a positive resolution to the sideways activity that has been in effect since the beginning of the year. But anything can happen. Still flirting with the zero line in the summation index. GE dropped 1/2 on average volume. The 200 day moving average continues to provide support here. Perhaps if it is broken we will have an idea of where the overall stock market is headed. Just a guess there. Gold was up a bit on the futures on good volume. The US dollar finished the session little changed but it did bounce around a bit. The XAU and GDX had slight fractional gains but they did come off of their lows. Volume was average. ABX had heavy volume but was only up a few cents. Mentally I'm feeling OK. It has been a volatile summer so far for the stock market. Not the typical trading by far. You can make a case for either direction here but the market will go where it wants. My guess is that the retail sales on Thursday will provide the next gyration. No SPY trades for now. 8 days to go in the August option cycle. The gold shares have performed better than gold lately and that is a plus. Hasn't happened in quite some time. Perhaps some overall market turbulence will provide some interest in the precious metal. Although that hasn't been the case so far this summer. We are in the positive seasonal time frame for gold now. We'll keep an eye on the next surprise to occur in the foreign markets overnight and go from there.
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