Monday, June 22, 2015
Back to the upside post expiration as the Dow gained 103 points on light volume. The advance/declines were positive. The summation index is moving sideways as we have yet to have a solid break higher here. But I do believe that it will be coming. I'd still like to try the SPY July calls at some point. However the short term technical indicators for the major stock indices are overbought. We are also moving day to day with the situation in Greece. Supposedly that problem will be solved by the end of the week. GE was up 18 cents on light volume. We'll need to see a run back to the bottom of its sideways channel in order to attempt the July calls here. Gold futures fell $17 today on a positive US dollar and the good news on Greece. The XAU shed a point and GDX lost 1/3. Volume was light. The gold shares bounce of last week looks false and we are heading lower. We are getting medium term oversold and the time to buy the October gold share calls is approaching. I'm still looking at the ABX calls as the vehicle of choice. Mentally I'm feeling OK. A good start to the week for stocks but we'll need to see a pullback to get long. Otherwise this will be another missed trade. The small stocks continue to lead the way here and that's a positive. Not a lot of economic data out this week. The final GDP revision on Wednesday could be a mover. However with the beginning of summer the doldrums can appear at any time. The trading is never easy and sluggish markets don't help the matter. The daily gold candlestick chart has a bearish pattern after todays price action. A resolution of the Greek drama would probably put further pressure on the precious metal. Patience is still advised here. We'll keep an eye on the overnight developments and see what tomorrow brings.