Thursday, June 11, 2015
We did get some follow through today as the Dow rose 39 points on light volume. The advance/declines were positive. The summation index is still moving down. Retail sales were a touch better than expected. We rallied for the first half hour and drifted lower for the rest of the session. The short term technical are now mid-range for the S&P 500. I still think we are heading higher. I did sell the SPY June calls today for a bit over 100% profit. I could have had a better exit as well but at least I stuck to the short term trade time frame. I may even try these again before expiration. GE was off 1/8 and the volume was light. I'm still considering the July calls here. Gold was off around $5 on the futures as the US dollar rose off of the retail sales report. The XAU lost 1 1/3, while GDX shed about 1/4. Volume remains light here as there isn't any interest in the gold shares. The gold shares are relatively weaker here and that is not a bullish sign. Mentally I'm feeling OK. The SPY June trade went OK. The entry and exit good have been better. However that trade is over and doesn't matter now. If the technicals line up properly in the next 6 days, I may try this trade again. I do think that the summation index is going to turn around here and start to move higher. Perhaps the July calls would be a better choice but they are expensive. I'll have to look things over tonight. Inflation data tomorrow but next week we get the Fed and the markets should move on that. Gold is not doing much and remains uninteresting. But I am probably going to try the October ABX calls if gold gets to $1150 or so. Whether it can hold that level will determine the fate of that trade. We'll watch what goes on overnight and close out the week tomorrow.