Tuesday, June 26, 2012
We bounced around today as the Dow finished with a gain of 32 points on light volume. The advance/declines were positive. The summation index continues higher but that appears to be a bit misleading considering we've just had a couple of triple digit down days. I think the market is trying to make up its mind here on which direction to take. No headline event today. Getting short term oversold on the stock indices. GE had a nice move to the upside, gaining 1/3 on good volume. Perhaps this stock will be the leader for the overall market. The relative strength for GE lately has been pretty good. Maybe I should have stuck with the original plan for the GE July calls. We still need to take out the overhead resistance at around 20.25. Gold fell back down today as the futures were off about $15. The US dollar was a touch weaker today. The XAU fell 2. ABX dropped 1 1/3, GG lost 1/2 and NEM shed 7/8. Volume was light to average. My open order for the ABX August calls was filled in the morning. It's already in the red. I could have gotten a better fill if I had waited a while longer but hindsight always has a better fill it seems. Plenty of time for this trade but I would like to see some upside from here. Oversold on the gold shares now. One thing that I don't think is in my favor is the lack of relative strength lately in ABX. It has been a laggard. Mentally I'm feeling OK. I'm in the next trade now and I thought I might take a break from the game but today looked like an opportunity for me. We'll see what happens. The stock indexes have started to move lower after the nice run up ealier this month. Anything could happen really due to the uncertainty in Europe. Perhaps we'll get more clarity on the direction of things after this weeks European summit. Or not. That in itself shows the type of problems that we face in this kind of trading environment. We'll watch what happens overseas tonight and go from there.