Tuesday, May 31, 2011
We started the week and ended the month with a nice breakout to the upside as the Dow gained 128 points on good volume. Advance/declines were 3 to 1 positive. The declining tops line from the beginning of May on the S&P 500 has been broken on decent volume. The summation index is heading higher. The trend is up for now. I certainly don't feel any better about not getting the OEX calls last week. But pullbacks can be bought and we still have 2 1/2 weeks on the June options. GE only managed a 20 cent gain today but the volume was good. I still don't have any trades in mind there. Gold lost $3 on the futures but the XAU rose 1/3. ABX, GG and NEM all had fractional gains on better volume, following the overall indices. Overbought here now and I have no trades in mind here at the moment. The dollar was lower again today and whatever uptrend we had there is gone. Mentally I'm doing OK but was at the dentist today and that took away my concentration for a while. I'll look to get some OEX calls on a snap back to the trend line that was just broken to the upside. Employment report due on Friday and that should be the next market mover.
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