Thursday, May 26, 2011
Another day of drift in my opinion as the Dow gained 8 points on light volume. Advance/declines were over 2 to 1 positive as the overall market was much stronger than the Dow. We were higher but got the usual late day fade that has been occurring lately. GDP came and went. There wasn't much news or data to consider really. No conviction for the stock indices here. I'm thinking of changing my leaning to the plus side due to the oversold condition of the market. But I'm not thoroughly convinced yet. GE was up about 1/4 on light volume. Nothing doing there trading wise. Gold dropped $4 and the XAU gained 3/8. The dollar was weaker today and it did not help gold. ABX, GG and NEM all had fractional gains on light volume. Mildly overbought on these issues now. No trades in mind here before the long weekend. Mentally I'm feeling OK. When the market drifts with no clear trend, as it is doing now, it makes for tough options trading. Even tougher than it normally is. I'd expect tomorrow to be a light volume stagnant affair ahead of the holiday weekend. I don't plan on any trades tomorrow. Todays action might turn the summation index back to positive. We'll see. I'm on the sidelines until further notice.
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