Friday, June 26, 2015
A day of indecision as the Dow gained 56 points on very heavy volume. The advance/declines were negative. It was a mixed bag as the small stocks were weaker on the day. That's not a positive. It appears we have some early end of the month and quarter moves going on. I did place another order for some SPY July calls but it wasn't filled. I'm a believer that weakness can be bought on Monday if there is any. The Greek saga should be settled over the weekend. We may just rally on the open when the market reconvenes. GE was up a nickel on light volume. I put in an order for the July calls here as well and wasn't filled. Perhaps I'll try again next week. Gold was little changed today but did come off of its lows. The US dollar was up a bit. The XAU and GDX had fractional losses on light volume. Still no interest here. I am going to try the ABX October calls at some point. Mentally I'm feeling OK. Earlier in the week I propositioned that Monday would be the ideal time to try the SPY July calls. Perhaps the market will actually cooperate this time around. We are not completely oversold on the major averages as the short term technical indicators are merely mid-range. However one of my other short term tools will be giving a buy signal if we are negative on Monday. I'll consider my options over the weekend. A short holiday week coming up with the end of the month and quarter thrown in. Plus the employment report on Thursday of next week. So there will be a lot for the market to digest. The summation index is still heading down but I expect it to turn back up in this area. I could be wrong. Gold remains unattractive now even with the Greek dilemma. The fundamentals here are negative with the stronger US dollar and the Fed looking to raise rates. However I will be looking for the seasonal rally to take place in roughly the July-September time frame. The gold shares are oversold on both the short and medium term. They are unloved and look like they are about to break below the recent nine month consolidation zone. If that happens things could get worse in a hurry. Hasn't happened yet but it's something to keep a close eye on. So there will be plenty of things to ponder over the weekend. For now it's Friday afternoon and time for a rest.