Wednesday, June 23, 2010
A day of indecision as the Dow gained 5 points on light to average volume. Advance/declines were about even. The overall market was weaker than the Dow. The Fed announcement came and went with no surprises. We were up over 50 and down over 50. I sold the OEX puts for about a 50% profit. We are now back to short term oversold. I bought some July OEX calls as I expect some upside for the next 4 days. So it's out of one trade and into another this time around. The calls usually take longer to develop a profit unless we see a dramatic move to the upside. I don't expect that. GE was down again on heavier volume and that is worrisome. The July GE calls are cheap now but I decided to go with the OEX. That could change tomorrow. Gold was down $6 but the XAU was up 1/2. The gold issues were mixed, with ABX flat, GG up 3/4 and NEM off 3/8. Volume was light. The gold shares did mount somewhat of a comeback from earlier in the day. The dollar was weaker today. I don't have any gold trades in mind at the moment. Mentally I'm feeling tired, haven't slept enough the past couple of days. That will change tonight. Feeling good about the trade closed out today, finally did something right for a change. But that trade is over and now my attention will be on the OEX July calls. The fact that the market sold off today and did not close on it's low could be a positive going forward. The transports held up after falling early as well. So we'll see what happens tomorrow.
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