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Friday, June 05, 2015

Reaction to todays employment report?  Not much.  The Dow fell 56 points on light volume.  The advance/declines were slightly negative.  We were down, then up and spent most of the day in a sideways malaise.  That is where we are at.  Sideways forever or so it seems.  The summation index is still heading down.  The TRAN had a positive session and the small stocks along with the overall market were stronger than the Dow.  I'm leaning towards perhaps getting some SPY June calls at the beginning of next week.  GE was up a few cents and the volume was pretty light.  Getting short term oversold but not completely there yet.  Gold fell $7 on the futures as the US dollar was higher today.  Gold did come back a few bucks in the aftermarket.  The XAU fell 7/8 and GDX lost 1/4.  Volume was very light.  There is no compelling reason to own gold here.  $1150 is the next downside target and it will need to hold on there.  I'm still looking at the October ABX calls.  Mentally I'm feeling OK.  It is rare when we don't see some volatility one way or the other on the jobs report.  Perhaps the market has its mind on something else.  Employment expanded more than expected.  Maybe the recent rise in interest rates is putting a lid on the stock market.  That money has to go somewhere though.  Technically the major big cap indexes are short term oversold.  Whatever is going on underneath the surface will eventually come out.  There will be a lot to consider over the weekend.  The precious metals did come off of their lows but the lack of volume was glaring.  There is no interest here.  Sometimes the time to buy is when nobody else wants it.  The fundamentals for gold at this time are negative though.  But I do want to have some kind of bullish position before the seasonally strong August/September time period.  It may be too early.  Plenty to ponder over the next 2 days.  I really think that the market is setting up for some type of rally soon.  I could be wrong but if things pan out on Monday or Tuesday, I'm probably going to attempt the SPY June calls.  We'll see what the charts say over the weekend.  For now it's Friday afternoon and time for a break. 

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