Tuesday, June 02, 2015
Back and forth again today as the Dow fell 28 points on light volume. The advance/declines were slightly positive again. So we continue to go nowhere as the market tries to resolve which way it wants to go. This has been going on for weeks on end. The only sustained trend is sideways. There is a short term down trend line in effect for the big cap stock averages. What happens there probably will tell the story. Waiting on Fridays employment report. GE was up a nickel and the volume was light. Waiting for oversold here. Gold was up $5 on the futures which wasn't that much considering the US dollar got clobbered. The XAU rose 1 1/4, while GDX gained about 1/3. Volume was average for lately. Not sure what is happening here with respect to the US dollar. However golds lack of better upside isn't bullish. Mentally I'm feeling OK. I suppose all we can do is wait while the market decides which way it wants to go. The short term techncials are getting oversold here though for the major stock indices. Perhaps the SPY June calls ahead of the employment report will be the proper play. But the summation index is still moving lower. I may just have to remain on the sidelines. I've got a couple of days to decide. The gold shares can wait for now in my opinion. Short term oversold there as well. However the medium term picture isn't as clear. The trading is never easy. We'll keep an eye on the overnight developments and see what tomorrow brings.