Friday, May 15, 2009
The Dow closed the week down 62 points on average volume. Advance/declines were negative. It was a downer week for the stock market. The summation index has turned down. I think the upside is limited from here. Again, I'd like to see a light volume retest of the recent highs and then get some OEX puts. But the market will do what it wants. Option expiration today was relatively mild. On to the June cycle and it's a week longer than usual. Gold was up a couple bucks today and the XAU dropped 2 points. ABX and GG had fractional losses, while NEM lost a buck. Volume was light. The dollar was stronger today. We'll have to see how the dollar and gold do next week. Gold is overbought and the dollar is oversold. I still like the gold shares and may purchase some calls on a pullback. Mentally I'm feeling good. I didn't do anything stupid this week and it's time for the weekend. I think the overall market moves sideways to down here but that's a guess. I've stated the optimal scenario for buying the OEX puts for June and we'll have to wait and see how it unfolds. I'll check the charts over the weekend and go from there. The extra week on the option cycle keeps the premiums high and that will have to be taken into consideration. So it's a couple of days to rest and back at it on Monday.
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