The vote in France was NO over the weekend and predictably the Euro dropped with a similar drop in gold due to the dollar's advance. This was the big news for the market we are currently following, gold. This should give a little pullback in the price of gold, as it is down overnight about $2.50. This drop could give the HUI, gold mining stocks, a bit of a breather after their stunning performance over the past couple of weeks.
The other gold news that we get every Friday evening is the commitment of trader's report that has shown bullish tendencies the last month. The commercials have decreased their net short position for the fourth straight week and have dropped another 20k contracts this past week. Remember, this is without much drop in the price of gold. Together with the news from the French this weekend, gold and silver will become better buys this week. We are watching.
The stock market is looking to Friday to see if the Employment report will reveal anything about the current state of the economy. With the report near we are thinking the top in the market should be either behind us or in the next few trading days until Friday.
With several days off in the market, we are going to be patient with any new positions and give the market a chance to trade a little before we make too many predictions.
Hope your holiday weekend was good.
Dow Industrials: 10542.55 +4.95