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Monday, June 04, 2012

Kind of a mixed bag today as the Dow fell 17 points on average volume.  The advance/declines were negative.  The overall market was stronger than the Dow.  We were much lower for most of the day but started to come back in the last 2 hours of the trading session.  Short term oversold on the stock indices here with a possible positive divergence on the daily RSI indicator.  The European markets are closed both today and tomorrow.  We should see some type of bounce here tomorrow.  GE fell 3/8 and has broken through the last near term support.  Volume was good.  Todays action would be considered a negative for the overall market going forward if GE is going to be a proxy for the stock indexes.  I'm still looking at the July calls here but simply keep lowering the strike price.  Perhaps today was the time to buy the calls but with no underlying support on the daily charts, I stayed on the sidelines.  Gold fell $8 on the futures but came back in the aftermarket.  The US dollar was weaker today.  The XAU was lower early but came back to post a gain of almost 2 points.  ABX and GG had fractional gains, while NEM rose 1 1/4.  Volume was pretty good.  I placed an order for some June GG calls.  GG has yet to break its down trend line on the daily charts that goes back to the beginning of March.  We are right on the cusp of doing so though.  I'm leaving the order open but most likely I have simply missed the opportunity to profit from the current rise in the gold shares.  The gold shares are short term overbought now.  Mentally I'm doing OK.  We did get some follow through to the downside today in the stock indices but began to fight our way back.  I'm expecting higher prices tomorrow.  I'll consider the July GE trade tonight.  Money continues to flow into the gold shares and this is a trend that I expect to continue for a while.  Declines, if we see any, can be bought.  Not a lot of economic data out this week but we do have a meeting in Europe and Bernanke testifies before Congress on Thursday.  We'll see what tomorrow brings.

2 comments:

James said...

Thank you.

city said...

nice posting.. thanks for sharing..