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Monday, June 02, 2014

Kind of a mixed bag to start off the week and the month of June.  The Dow rose 26 points on paltry volume.  The advance/declines were slightly negative.  The overall market was weaker than the Dow.  The summation index continues higher.  The technical condition of the market remains the same.  Overbought and staying there.  My June OEX puts are still losers.  I still do not trust light volume rallies and that is what we have.  I expect that we will see some type of decline soon.  GE was up a few cents and the volume is still very weak.  My next trade for GE will involve getting some January calls over the summer or fall.  I expect some kind of significant market decline for autumn of this year and that will hopefully set up an opportunity for this trade.  Gold lost a couple bucks on the futures today as the US dollar continued higher.  The inverse relationship here remains intact.  The XAU was off 3/8.  ABX, GG and NEM all had fractional losses on light volume.  The song remains the same here.  There is no interest in owning gold or the gold shares.  Mentally I'm feeling OK.  Although I'm looking for some type of decline for the stock indices this week, it probably won't be enough to save my June OEX put trade.  There are just a little less that three weeks to go in the June option cycle.  I'm not sure that a big enough drop is in the making here.  This trade is in the cut the loss mode unless we see something dramatic to the downside this week.  That is wishful thinking.  I've said all that I can say about gold.  It is unloved and has no interest on the long side.  We'll keep an eye on the foreign markets overnight and take it from there.

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