Thursday, June 03, 2010
We were up and we were down with the Dow finally ending up with a 5 point gain. Advance/declines were positive. Volume was average. The overall market was stronger than the Dow. The McClellan oscillator moved back into positive territory and the summation index moved higher for the first time in weeks. I did have an order in for some OEX puts today but it wasn't filled. We never did get all the way back to the daily down trend line. Perhaps we will with the reaction to tomorrows employment report. Maybe even break through to the upside. But that's a guess as usual. Gold fell $12 today and the XAU fell 3 3/4. ABX dropped 3/4, GG lost a buck and NEM shed 1 3/8. Volume was light. The dollar was up on the day. I still may consider getting long the gold shares for the June option cycle. The Gold/XAU ratio remains near the buy signal. But there isn't a solid technical reason so I'm holding off for now. Mentally I'm tired, did not sleep enough. Tomorrow probably will be an important day. We are close enough to the daily down trend line on the major indices that it very well may be broken to the upside. We also could fail here and head back down. The reaction or lack of to the employment report should be the catalyst. GE hasn't really moved much lately and I'm not thinking of trying a trade there again at the moment. So we'll see what happens tomorrow and if there is a trade there for me.
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