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Friday, June 08, 2012

We continued higher today as the Dow gained 93 points on light volume.  The advance/declines were over 2 to 1 positive.  The action was bullish today as we were able to overcome the late sell off of yesterday.  The stock indices are short term overbought now but the trend is up.  The summation index is heading higher.  Declines can be purchased in my opinion as this is probably the start of the summer rally.  Of course this could all change with some type of bad news out of Europe but I doubt it.  We'll see some weakness at some point next week but I don't think it will last.  GE was up 20 cents and the volume was really heavy once again.  That makes 2 days in a row where the volume just zoomed at the end of the day.  I don't know what is going on here but I will surely buy some calls if we get a pullback.  In retrospect, I should have done this trade for the July calls early in the week.  Gold was up $3 on the futures after being lower early.  Not too bad considering the meltdown yesterday.  The US dollar was higher as well.  The XAU was up a point.  ABX, GG and NEM had fractional moves one way or the other on light volume.  My ABX June calls are still in the red.  I'll have to see some strength in ABX next week for this trade to have a chance.  It's possible since we're in a market with volatility and one that's driven by the most recent headline.  2 weeks left in the June option cycle.  Mentally I'm feeling OK.  It appears that last Fridays swoon on the employment report was the end of the decline.  The weekly stock index candlestick charts now look bullish.  The GE weekly chart is bullish as well.  I'll be looking at July calls on any declines now.  Gold did not have a good week and I think it could either way here.  We'll have to see what happens over the weekend and take it from there.  For now it's Friday afternoon and time for a break.

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