Friday, May 30, 2008
It seems like summertime already as the Dow lost 8 points on average volume. Advance/declines were positive. We went nowhere really all day and then sold off in the last 5 minutes. These type of days are not good for option trading. I canceled my open order for the OEX puts and will try again next week. Perhaps getting them on Monday if we see any strength. I did notice a lot more premium in the puts than the calls, which leads me to believe that the puts are the way to go here. 3 weeks on the June option cycle left. We'll see. Gold bounced back about 10 bucks and the XAU gained 4 points. ABX, GG and NEM were all higher but the volume was light. I'm still thinking sideways there for now but I certainly don't know. Could follow oil if it heads lower like we saw in the past week. I'm just guessing there. As usual it will help to follow the dollar. GE was up a touch on good volume. Again the volume in GE has picked up but I can't tell if it's accumulation or distribution. It is oversold on a weekly basis. Mentally I'm feeling OK, slept well enough. We've had an up week on light volume. We also did not see any follow through to a very bad previous week. I am pretty sure that there will be some downside next week. It's a matter of proper positioning beforehand. We should see some positive money flows early in the week. The employment report is out on Friday. I'm going to check the charts over the weekend and try and come up with some type of viable game plan. For now it's time for a break. Relax and forget about the markets for a couple of days.