Friday, July 06, 2012
The employment report came and went as the Dow fell 124 points on light volume. The advance/declines were 2 to 1 negative. The jobs number was a bit weaker than expected. The result could have been worse but we came back in the last hour and a half. Hard to say what will happen on Monday as the volume has been light all week. I'm still going to be a believer in higher prices before the July option expiration. Summation index still to the upside and the market has the feel of wanting to go higher. GE fell 1/3 and the volume was good. Not sure about the calls here as we broke through the longer term resistance only to fall right back below it. I thought that the breakout was valid bit I guess not. I'll check the charts again over the weekend. Gold had a poor showing today as the US dollar rose despite the weak jobs report. The precious metal fell $30 on the futures on the stronger dollar. The XAU dropped 4 1/2. ABX off 1 1/4, GG dropped a buck and NEM lost 1 1/8. Volume was light. My August ABX calls are now barely in the black. Could be now that this trade is not going to work out. I'll have to ponder this over the weekend. The short term technicals have rolled over and the weeklies have too. Mentally I'm feeling tired, did not sleep well. I'm not exactly sure what will happen next to the stock indexes but the trend is still up for now. I may be looking at a July OEX call trade. Gold looks a lot worse than it did at the close of last week. I will have to do the work over the weekend and try and come up with a game plan for the ABX trade next week. I'm inclined to hold onto it for now. Perhaps we'll get all the summer players back next week. Right now, it's time for a break.
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