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Thursday, May 28, 2015

Weakness for this trading session as the Dow fell 36 points on light volume.  The advance/declines were negative.  We'll get the GDP revision tomorrow and finish up the month of May.  The summation index is moving lower.  I still think that we will be moving higher from here but anything can happen.  The short term technical indicators for the major stock indices remain mid-range.  Not a clear signal really.  GE was up 1/8 on light volume.  I still would like to get some July calls here if we ever get oversold.  Gold was up a couple bucks as the US dollar was lower today.  The XAU was up a point and GDX had a fractional gain.  Volume was light.  ABX was a bit lower early on and I placed an order for the June calls.  My order wasn't filled and ABX turned around to finish the day with a gain of 1/3 on average volume.  Perhaps I should have chased this trade but to me it was short term in nature so I stayed out.  It is simply another missed opportunity if ABX continues higher.  I also like the October calls here at some point over the summer.  Mentally I'm feeling OK.  We'll see how the market reacts to the revised GDP number and that is about all we've got to finish the week and the month.  Still three weeks to go in the June option cycle, so there will be trades out there.  My guess is a weaker GDP and a stock rally with gold moving higher as well.  The consensus is for a weaker number as well.  Perhaps there will be some more volatility with the end of the month but we could finish things with a whimper as well.  There really isn't a clear technical signal for the stock indexes at this time.  The gold shares were stronger than the price of gold today and that's a positive.  However the volume was light.  Summer is approaching and you don't want to force trades.  If the gold shares head back to the downside in the next few weeks, it possibly could be the set up for the October calls.  Time will tell.  We'll watch the overnight developments and see what tomorrow brings.

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