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Monday, February 09, 2015

Weakness to begin the week as the Dow fell 95 points on average volume.  The advance/declines were negative.  I'm expecting some downside/consolidation this week ahead of next weeks option expiration.  That will fit in with my buying some SPY February calls this week.  Retail sales on Thursday seems to be the only economic data that will be relevant this week.  So perhaps I will wait until then to purchase unless we see some decent downside in the next couple of days.  I'm still expecting new all time highs for the major stock indices by Februarys expiration.  GE was up 1/8 and the volume was light.  Almost back to the 50 day moving average here.  Gold bounced back over $5 today as the US dollar was slightly lower.  The XAU was up 1 1/3, while GDX added 1/3.  Light volume for the gold shares.  I don't expect much movement here for the gold shares until the earnings arrive later this month.  Mentally I'm feeling OK.  Patience is required now before the next trade attempt.  I do want to try the SPY February calls though.  A pull back to 2025 on the SPX would be ideal.  Timing, as always, will be an important key.  This will be a strictly short term endeavor, there are only 8 days left in the February option cycle.  So we'll see.  My GE March calls are still in the red.  Plenty of time left there for now.  We'll keep an eye on the overnight news and take it from there.

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