Thursday, June 08, 2017
Another day of hanging around as the Dow gained 8 points on good volume. The advance/declines were positive. The summation index is still heading sideways. We were both up and down today so it was frustrating no matter which side you're playing. At this rate I probably won't be attempting any trades in the June option cycle. We're still short term overbought and have been all week. The small stocks also continue to outperform and that is a positive sign. I think that I'll still try the SPY June puts if we get to 2450 on the S&P but that isn't a given at this rate. The news today didn't do much for trading and we've got the election results from England coming in soon. With only six days to go in the June option cycle the risk only increases from here. GE was off about a dime on good volume. Gold dropped over $10 on the futures as the US dollar was a bit higher again. The XAU and GDX had fractional losses on average volume. Gold has now dropped back from the breakout point of the long term down trend line. That makes the breakout this week invalid unless we get a rally tomorrow. Mentally I'm feeling a bit slow, did not sleep well. So we've made it to Friday and still no trade. Even if we do rally tomorrow, I may have to wait until Monday to attempt the put trade. Due to the short term overbought condition of the market, I do not expect to try the calls. The fact that we've stayed overbought for so long puts the odds of trying the calls even higher. So at this point I'll wait to see the reaction to the British election and go from there. Europe and Asia were mixed in last nights trade. We'll close out the week tomorrow.