Thursday, June 30, 2011
The stock market is powering higher here as the Dow gained 153 points on average volume. The advance/declines were almost 3 to 1 positive. The Dow and the Dow transports have already broken through their daily downtrend lines of resistance. The summation index is trending higher. I adjusted down the price on my order for the OEX July puts but I'm thinking about just canceling it. The S&P 500 is at the resistance area but with other stock indices breaking out, the S&P may follow. I expect some beginning of the month money flows tomorrow. The stock indices are overbought here but that doesn't mean that they can't stay that way. GE was up 1/4 on average volume. Not even close to the resistance here but we are above the 200 day moving average. Gold lost $7 on the futures and more in the aftermarket despite a weaker US dollar. The XAU followed the stock indices higher with a gain of 1 5/8. ABX, GG and NEM all had fractional gains on light volume. Not exactly sure what to make of the gold shares here. I now don't think that I'll be trying any trades for the July option cycle for the gold shares. The troubles in Europe seem to have subsided for now, so the flight to safety aspect for gold is diminished. That's subject to change, of course. Mentally I'm feeling OK. Trying to figure out what to do with regards to the pending OEX put trade. The smart thing to do would most likely be to cancel the order and look for something else. I will have to think long and hard about it tonight. The first half of the year has ended and the trading account is only up 12%. That certainly isn't enough considering the risks that are taken. The return was much better but I haven't had a winning trade in months. As usual, I will try to have a better second half of the year performance. My guess is tomorrow will be a light volume affair before the long July 4th holiday weekend.
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