Monday, July 28, 2014
A mixed bag again to start the week as the Dow gained 22 points on light volume. The advance/declines were negative. The NASDAQ was lower and the S&P 500 barely managed a slight gain. The summation index continues lower. Plenty of economic data out this week including 2nd quarter GDP and the employment report. Plus we have a Fed announcement on Wednesday. I guess just about anything can happen. What will happen, I don't know. I do know that as long as the summation index is heading lower, it will be hard for the market to have an extended rally. GE was off almost 1/4 and the volume was pretty good for the summer. With GE in a decline it is a surprise to see the overall market holding up here. Gold was flat on the day as was the US dollar. The XAU was up over 1/2. ABX was flat, GG up 1/4 and NEM rose 1/2. Volume was light. NEM will report its earnings after the bell tomorrow. I did place an order for some October ABX calls today. It wasn't filled and I have left it open overnight. I think that I am going to try and get some ABX or GG calls before the earnings come out on Thursday. That is the plan at the moment. Mentally I'm feeling a bit tired. Tough call on the stock market right here in my opinion. I'm going to sit on the sidelines with regards to the OEX for now. The technicals for the major stock indices are about mid-range. The October gold share calls will be the next trade. I should be purchasing some calls tomorrow or Wednesday if all goes to plan. This is one of those trades that I will know pretty quickly whether or not its going to work. The short term technicals for ABX are more oversold than overbought. I'm sticking with the idea of the month of October option series. So we'll see what happens.
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