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Tuesday, June 28, 2011

Another triple digit day to the upside as the Dow gained 145 points. The advance/declines were over 3 to 1 positive and the volume was light. The stock indices are looking forward to good news from Greece tomorrow. There's no other explanation for todays upside move. Perhaps some short covering as well. The summation index is now solidly moving higher. The trend is up but for how long? I'm still considering getting some OEX puts when we reach resistance. GE was up 1/8 on light volume and is back to its 200 day moving average. Gold gained $5 today and the XAU rose 3 1/8. The US dollar fell again today. Perhaps the breakout in the weekly US dollar chart was a false one. That would change the scenario for gold. ABX and GG gained 3/4, while NEM rose almost 1/2. Volume was light. Again, it looks like another positive RSI divergence in the daily ABX charts. I'm not sure if I'm going to try the calls here though. A little less than 3 weeks for the July option cycle and there's a holiday off thrown in there as well. So we'll see. Mentally I'm feeling a bit tired, did not sleep long enough. I guess we'll have to wait and see what the markets reaction to what happens in Greece is tomorrow and go from there. More overbought than oversold on the stock indices but not excessively so. If we see another big up move tomorrow, I may just try the OEX puts. But I'll have to ponder things once again tonight before any trades.

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