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.
Tuesday, 27 November 2012
Heading lower today and that isn't unexpected as the Dow fell 89 points on light volume. The advance/declines were negative. We are working off the short term overbought condition of the stock indexes. I would guess that the recently made lows would hold any decline but that is just a guess. The summation index is still moving in a positive direction. I feel as though we are simply taking a rest here but I do not expect any huge rally anytime soon either. GE was off almost a 1/4 on lighter volume. Nothing new to report here. Gold fell $7 on the futures as the US dollar posted gains today. The XAU dropped 3 3/4. ABX off 3/4, GG fell 1 7/8 and NEM shed 1/3. Volume was average for the gold shares. The ABX January calls that I own continue to lose value. Plenty of time for this trade to work out and I will hold these options at least into December. However I would like to see the price direction turn around at some point this week. Mentally I'm feeling OK. A couple of down days to start the week and I would not be surprised if the weakness continued just a bit more. We could be moving into a sideways trading range but only time will tell on that. Gold fell a bit today but we are still above the rising trend line that began at the beginning of the month. I would prefer to see the gold stocks taking the lead here but it hasn't happened yet. We'll see what tomorrow brings.
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