Thursday, May 24, 2012
The Dow gained 33 points today on light volume. The advance/declines were positive. We spent much of the day in negative territory but rose in the final hour. The overall market was weaker than the Dow. Still a lot of bears out there but believe it or not we are approaching short term overbought for the stock indexes. The markets are being held hostage once again by the problems in Greece and the election there isn't for another 4 weeks. I'm still a believer in higher prices short term but that could change. Maybe we'll simply move sideways for a while. It's a guessing game sometimes when the volatility expends. GE was up 1/8 on average volume. I'm still looking at the July calls here but will be looking for a better entry point. Gold rose $10 on the futures today but was much higher as the US dollar gained a bit. The XAU was up 1/8. ABX, GG and NEM all had slight fractional moves one way or the other on good volume. I've left in an open order for some June ABX calls but we'll need to see some weakness in the stock to get filled. The gold shares are acting extremely well here. I think any weakness can be bought although the ideal time for purchases has passed. Mentally I'm feeling OK. I still think the stock indices will be moving to the upside here. There are still too many bears. One thing is certain though. The troubles in Greece are not going to just go away. Whatever happens with the election in June doesn't change the fact that Greece is bankrupt. How and when the markets sort that out is probably the underlying theme for the markets recent movement. I try and go by the technicals and they got blown out to the downside recently. However we did not really see a stock market crash. So I'm thinking we should start to move higher. I could be wrong. The gold shares have acted really well lately and still have plenty of room to move to the upside via the weekly charts. I think that will be the next trade if I get the chance. We'll simply get through tomorrow before a long holiday weekend and go from there.
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