Thursday, June 18, 2015
Moving higher as the Dow gained 180 points on good volume. The advance/declines were 2 to 1 positive. Todays action should turn the summation index back to the upside. The down trend line of the last four weeks in the S&P 500 has been broken to the upside on good volume. Declines can be bought in my opinion. Technically I'll be looking for a snap back to this line to get some SPY July calls. The Greece situation wasn't resolved and the meetings will now be ongoing. Expect some type of resolution there. This is the beginning of the summer rally in my mind. I am hoping it is not too late to profit from it. GE was up 1/3 on good volume. May have missed this July call trade but we'll see. Earnings are due the day of the July option expiration. Gold moved higher as the futures gained $25 but some of that was from the aftermarket yesterday. The US dollar was lower today but did finish off of the lows for the session. The XAU added 7/8 and GDX rose 1/4. Volume was lighter than yesterday. I expected more upside here out of the gold shares considering the gains in gold itself. So perhaps the October call trade still could work. The ideal timing for this purchase would be sometime in July. That's my best guess at the moment. Mentally I'm feeling OK. It looks like buying the June SPY calls on Monday would have been the proper strategy. But it doesn't matter now. The bigger picture has stocks turning higher here and I think for more than just a week. The TRAN had a nice move higher today as well. So I feel that call buying for July is the right move from here. The proper timing will be one of the keys as usual. I'm probably going to buy some SPY July calls if we get a move back towards the broken downtrend line. If that doesn't occur then I will have to look for something else. GE remains on the radar as well but it isn't as volatile as we all know. I'm still being patient for the gold share trade at this time. So there you have it. We'll watch what happens overnight and close out the week with expiration Friday tomorrow.