Monday, July 16, 2012
Just another mundane Monday in the summer as the Dow fell about 50 points on light volume. The advance/declines were negative. No upside follow through to Fridays fireworks. I still think we'll head higher from here with expiration week as the back drop. We've got a couple days of Bernanke blabbering to Congress to get through. The daily stock index technicals are mid-range so I suppose you could make a case for either direction from here. Plenty of earnings to contend with along with a modest amount of economic data. GE was off 1/8 on light volume. Still holding the 50 day moving average on the daily charts. Earnings on Friday. I doubt I'll be attempting a trade for GE this week. Gold was little changed on the day as the US dollar was lower. The XAU fell 5/8. ABX was flat while GG and NEM had fractional losses. Volume was light. My ABX August calls continue to be losers. I'm resigned to waiting on the earnings report next week. Might be too late by then. This trade is in the cut the loss stage at this point. The technicals are oversold though so we'll see what happens. Mentally I'm feeling OK. The stock indices continue to remain above their rising trend lines on a daily basis that began in the beginning of June. As long as that holds the trend is higher in my opinion. Gold has been moving sideways and the gold shares have lagged. That usually isn't a bullish scenario going forward. Yet I still own the August ABX calls at a loss. Less than 5 weeks to go on this trade now. Perhaps the earnings will help me cut the loss. Not a good trading strategy there. We'll wait to see what Bernanke has to say tomorrow.