This Stock Blog gives insight on daily stock market trading as well as stock trading analysis. We also list stocks to buy, top stocks, stock picks, and the best stocks to invest in 2013/2014.
Monday, 24 September 2012
A lower start to the week as the Dow fell 20 points on light volume. The advance/declines were negative. Still basically moving sideways for the S&P 500. I continue to believe that this is simply a pause before we head higher. I see nothing to change that view for now. Plenty of economic data out this week so maybe that will get things moving. GE was off 1/8 or so on light volume. I'll get the calls here when we get to the 50 day moving average, when and if that happens. Otherwise it's a waiting game. Gold fell today, the futures dropped $13 on a slightly higher US dollar. The XAU lost 6 1/8. The gold shares underperformed today. ABX off 1 1/2, GG down 1 7/8 and NEM lost a buck. Volume was average. The gold shares were due a pullback and this is probably the start. I've placed an open order for the October ABX calls since I believe that we will head back up to test the highs again before the end of the October option cycle. No real hurry though as I have priced the ticket away from todays premium. If ABX continues to drop the order may be filled. Mentally I'm feeling OK. I saw a lot of press this weekend about the divergence of the Dow transports, which I mentioned last week. When everybody sees the same thing in the markets it usually doesn't mean anything. We'll see. The transports got a bounce today. My work actually shows that we should see a move up in the stock indices this week despite the overbought conditions. Time will tell soon on that. Haven't had any news from Europe in a while to get things going. End of the month and the 3rd quarter coming up on Friday. We'll keep an eye on things overnight and go from there.
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