Tuesday, June 12, 2012
Back to the upside today as the Dow gained 162 points on light volume. The advance/declines were about 4 to 1 positive. So today was basically the opposite of yesterday. The market seems to have the feel of wanting to go higher. The summation index continues to the upside. Perhaps we are in the beginning of the summer rally. However we are still in a headline driven market and today had no headlines. Retail sales should be a mover for tomorrow. GE was up about 1/3 on average volume and closed at the high for the day. I obviously should have gotten the July calls here instead of the June ABX calls. If GE is a proxy for the overall market then the stock indexes will be heading higher. Too late to try the calls here though at this point. Overbought in the short term on GE. Gold had a good day, up $17 on the futures as the US dollar was weaker. The XAU rose 3 1/8. ABX up 1/4, GG gained 3/4 and NEM tacked on a buck. Volume was average. My ABX calls are still very much in the red. Unfortunately ABX is now the laggard among the major gold stocks. This trade is on the way to being another loser. Mentally I'm feeling tired, did not sleep well. The stock indexes acted quite well today. There were no apparent reasons. Gold was up as well. I'm in another losing trade with 8 days to go in the June option cycle. ABX will have to have some type of strong move to the upside in order for me to exit with a smaller loss. I suppose anything can happen with the Greek election this weekend but I don't think that they will be abandoning the euro anytime soon. We'll watch the foreign markets tonight and go from there.
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