Monday, June 14, 2010
We opened higher and closed lower, which usually isn't a bullish sign. The Dow lost 20 points on light volume. The advance/declines were solidly positive though. Today looks like it was the day to try the OEX puts. I did not get any. We broke through the daily downtrend line on some indices but the volume was light. I still might try the OEX puts if things line up to do it later this week. However with only 4 days in the June option cycle the risk will be very high. I still have an open order in for the GE July calls. GE was down a bit today on light volume. My thinking here is that we will build a small base and that process is happening now. From there we will rally and then I can dump the calls at a profit. Could be wishful thinking as well. Gold lost $5 today and the XAU fell 2 2/3. ABX, GG and NEM all fell over a buck on light volume. ABX is at it's rising trend line and it's 50-day moving average. It's possible that the line will hold and the June calls can be bought here for a quick trade. It's also possible that the rising trend line will be broken and the rally from February is over. But we are at the moment of truth. Still a buy signal on the Gold/XAU ratio. So I'll have to think about that one tonight as well. Mentally I'm doing OK, slept well. It's expiration week and I do have a couple of ideas. Might be too late for the OEX puts though. The safer trade to do would be to go out to July with the GE call trade. So we'll see. Time will be compressed with just 4 days to go here in the June cycle. Timing will be even more important and it will have to be close to exact. A tough order in the markets. So I'll mull things over and decide which path, if any, to choose.
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