Wednesday, June 25, 2014
Back to the upside as the Dow gained 49 points on average volume. The advance/declines were 2 to 1 positive. I do not expect any major moves one way or the other for a while. We should simply drift higher or sideways as the summer begins. The overall market was stronger than the Dow and that is a positive going forward. We have a holiday shortened week coming up next week. I think it is a time to be patient, especially when it comes to trading options. Time decay is not your friend unless you are an option writer. GE was off an 1/8 or so and the volume was light. We dipped below the 50 day moving average for GE today. Gold was up a buck on the futures, while the US dollar dropped a little on the weak GDP revision. The XAU gained 7/8. ABX, GG and NEM all had fractional gains on light volume. The gold shares need a rest and hopefully this is the beginning of it. I would like to buy the October gold share calls after the holiday in early July if the market sets up that way. We'll see. Mentally I'm feeling a bit tired, did not sleep well. The short term technicals for the stock indices remain on the overbought side. That doesn't mean they can't remain there and they have for an extended amount of time recently. If this persists we'll be seeing more new all time highs in the near future. Gold is giving the appearance that it simply wants to move higher. Intra-day declines are being bought. I am still going to try and be patient here. But I do not exactly know how patient to be. Some of the chart patterns for the gold shares have the appearance of being very bullish. As usual, it's never easy in this game. So we'll follow the overnight action and go from there.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment