Tuesday, July 09, 2013
Once again this blog website is malfunctioning. Hopefully this writing will be posted. The light volume rally continues as the Dow gained 75 points. The advance/declines were almost 3 to 1 positive. Overbought and staying there. This rally has lasted longer than I thought it would as we have now broken through the declining tops lines on the major indices. How much longer will it last? Usually longer than you think. I adjusted my open order for the July OEX puts and it hasn't been filled yet. I will have to keep adjusting it to a higher strike price the longer the advance goes on. I'm still a believer in this trade because the volume here has been anemic. We've got the Fed minutes out tomorrow and that could cause some volatility. So we will have to wait and see. GE was up 1/3 on the usual light volume. I'm not exactly sure what to do here next so I will probably pass on the July option cycle. However with the earnings due on expiration Friday, I could change my mind. Gold was up over $10 on the futures despite another strong day in the US dollar index. It looks like gold pulled back in the aftermarket though. The XAU only gained a point. ABX, GG and NEM all had fractional gains on good volume. My October ABX calls are slightly in the red. Gold and the XAU continue going nowhere. Mentally I'm feeling a bit tired. RUT hit another new high for the year and that could be a precursor for the overall stock market. That's a guess as usual and if true, buying OEX puts would probably be a failure. I am still going to try them here at some point in the July option cycle. 8 days to go there. Gold continues to languish after the recent debacle. Base building is what is needed here. We'll keep an eye on what happens tonight and try for the OEX July puts again tomorrow.
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U.S. stock pointed to a slightly lower open on Wednesday, as investors remained cautious ahead of the minutes of the Federal Reserve's most recent policy meeting, expected later in the day.
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