Thursday, May 22, 2014
Barely up for the Dow as it only gained 10 points today on light volume. The advance/declines were just about 2 to 1 positive. The overall market was much stronger than the Dow. That is bullish moving forward. I am still looking at the June OEX puts for the next trade. It appears to me that a bearish rising wedge is being constructed on the daily charts for the OEX. My target for getting the puts is around the 845 level. A check of the option premiums shows that the puts are very expensive relative to the corresponding calls. Usually when the prices are out of whack like they are now, it is a tip off to the direction that we are going to take. GE was flat on the session and the volume remains very light. The gold futures were up around $5 and the US dollar was a bit higher today as well. The XAU finished little changed. ABX, GG and NEM all had fractional losses on light to average volume. Still no interest in the gold shares. Mentally I'm feeling OK. The TRAN hit a new all time high today. It has yet to be confirmed by the Dow. The usual weak seasonality due now has not materialized. I am going to try and be patient here and wait for the OEX to reach the 845 level. That should be the next trade unless we get some type of huge rally. Gold continues sideways. The US dollar today broke above its short term down trend line. That isn't bullish for gold. Tomorrow should be a light volume, get off for the long holiday weekend early type of trading day. We probably shouldn't read too much into it one way or the other. We'll watch the overnight action and close out the week tomorrow.
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