Tuesday, June 15, 2010
The Dow exploded to the upside today as it gained 214 points on average volume. Advance/declines were over 5 to 1 positive. The summation index is moving higher. I tried the OEX puts halfway through the day. Yes, it was a loser and I dumped them in the final hour. It was a 40% loss but not a lot of money involved, thankfully. The risk is high in the last week of the options as I have said. I was simply wrong on the timing and got out. I still believe that there will be a decent downside day this week. With that thought in mind I am leaving in an overnight order for some OEX puts again. We are short term overbought. GE was up about 40 cents on light volume. I'm leaving in the open order for the GE July calls. Gold was higher by $10 and the XAU gained 4 1/3. ABX and GG were up almost a buck, while NEM rose 1 1/3. Volume was light. The dollar was weaker today as the flight to safety there is taking a break. The daily uptrend line for ABX has held once again. That looks like the trade that should have been done. Mentally I'm a bit tired, did not feel well this morning. So I tried the OEX puts today when I shouldn't have and I'm going to try them again. The summation index is heading higher so the path of least resistance is actually higher according to this indicator. Maybe I'm just wrong in my assessment of Junes expiration week. Perhaps just waiting on the GE trade to be filled is the better course of action. I'll consider these things tonight and take it from there.
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