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Friday, May 30, 2014

A mixed picture to finish out the month as the Dow gained 18 points on better volume.  The advance/declines were slightly positive.  The small stocks were lower on the session.  The summation index continues higher and there is no overhead resistance.  The S&P 500 closed near its high for the trading day.  It appears that all systems are pointing towards higher prices.  The June OEX puts that I bought are almost at a 50% loss.  Bad timing on my part there.  The technicals for the stock market are overbought and staying there.  GE was up a few pennies but the volume here remains extremely light.  No trades in mind here.  Gold was off over $10 on the futures but came back a bit in the aftermarket.  The XAU rose 2/3 in a turnaround during the day.  ABX, GG and NEM all had fractional gains.  I'm not sure if this is the bottom for the gold shares and there is no rush to find out.  I think it may be prudent to wait and see if we get down to the $1200 level.  Mentally I'm feeling OK despite holding onto the losing June OEX put trade.  There are still three weeks to go in the June option cycle.  However the market seems as though it simply wants to move higher.  Overbought short and medium term, so some type of pullback is due.  The volume has been really light on the upswing but there do not appear to be any sellers out there.  The beginning of the month should see some positive money inflows as well.  Gold broke the support this week and is heading lower.  The US dollar was a bit lower today but remains in an uptrend on a daily basis.  Today was the first day in a while that the gold shares outperformed the precious metal for a change.  But that may not mean anything.  I'm still looking at getting some October gold share calls eventually.  Perhaps golds perceived value as a safe haven doesn't work anymore.  There is practically a civil war about to erupt in the Ukraine and gold continues lower.  I can't figure that out.  Plenty of charts to consider over the weekend.  It seems like the June OEX put trade is now a cut the loss deal.  We'll see what happens next week.  For now it's Friday afternoon and time for a break.

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