Tuesday, July 07, 2015
A one day reversal to the upside today as the Dow gained 93 points on heavy volume. The advance/declines were positive. We were off 200 points within the first couple hours of trading today. It was quite an impressive comeback. Perhaps we now have an all clear for some more upside but the Greek drama remains. Greece now has until Sunday to work out a deal. Except nobody knows how that is going to happen. The TRAN turned around today and the small stocks did as well. The short term technical indicators have rolled back to the upside. But we are still in a headline driven environment. GE turned around as well and was up 16 cents on OK volume. The GE July calls that I purchased yesterday now have a slight gain. Gold was off over $15 today and we dropped below the important $1150 level at one point. The US dollar had a good session but did come off of its highs. Commodities in general took a hit today. The XAU fell 3 points and GDX lost 7/8. Volume was heavy. Silver broke support today and could be leading the precious metals complex lower. I'm still looking at the October gold share calls but will have to careful here because we could be in for a washout to the downside. Mentally I'm feeling OK. We'll have to see if the stock indices can build on the todays turnaround. We've got the Feds beige book tomorrow as maybe Greece can stay in the background for few days. Doubtful, but we'll see. We also have the Chinese stock market falling apart as well. Todays price action should lead to higher prices in the near term though. But the market will go where it wants. 8 days left in the July option cycle. We will have to see what the summation index has to say. I don't think todays action turned it back up yet. But the market turnaround was encouraging. Gold needs to hold on here or we could be heading much lower. That's a guess as usual but with the breakdown in silver today, gold probably isn't too far behind. We will keep an eye on things there. We'll see what happens overseas tonight and take it from there.