Wednesday, July 17, 2019
Selling continued as the Dow fell 115 points on light volume. The advance/declines were shy of 2 to 1 negative. The summation index turned around and is heading down. The short term technical indicators for the major stock averages have started to turn down. The TRAN got clobbered today on heavy volume and that is not a good sign. I don't think that we're on the verge of a breakdown here but I could be wrong. GE lost 3/8 on average volume. Gold found buyers, the futures rose over $10. The US dollar was lower. The XAU jumped 3 1/4, while GDX gained a full point. Volume was heavy. I still like the longer term gold share calls despite the higher prices and the overbought nature. Money has decided that this is the place to be and I expect to see the 30 price for the GDX. I did not think it would be straight up but that's what it looks like will happen. I would still like to wait and see an oversold reading on the indicators but that doesn't look like it will occur. Mentally I'm feeling tired after a long day and the blog will be cut short today. Europe and Asia were lower overnight as well. It isn't a wholesale rout for now but we'll have to see where it goes.
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