Monday, June 16, 2014
Kind of a wait and see type of Monday as the Dow gained 5 points on light volume. The advance/declines were about even. The market is waiting on Iraq and the Fed. The economic data out today was pretty much in line with expectations. Technically the stock indices are short term oversold at this point. I think that the downside is limited here in the near term. Plus we have the positive expiration week bias in play. I have no OEX trades in mind right now. GE was off almost 1/4 and the volume was what passes for average lately. Still above the 50 day moving average here. The gold futures finished the session little changed but came off of the highs. The US dollar was slightly lower. The XAU fell 3/8. ABX lost a nickel, while GG and NEM dropped around 1/4. Volume was light. Simply waiting for a snap back here to get long the October gold share calls. This is the only imminent trade that I am looking for. Mentally I'm feeling OK. I'm expecting some upside for the stock indexes in the next couple of days, barring some type of unforeseen event. That's my take on the technical condition of things there at the moment. Gold was turned back at its 50 day moving average. That has generally been the case since the beginning of April. As long as gold holds above the $1240 level, it has a constructive tone to it. The gold shares have outperformed gold recently and that is a plus. Gold remains off of the media radar and that is also a plus. But anything can and will happen in this game. We'll keep an eye on the overnight developments and take it from there in the morning.
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