Tuesday, August 19, 2014
Another strong day to the upside as the Dow gained 80 points on light volume. The advance/declines were shy of 2 to 1 positive. The summation index continues higher. The small stocks are doing good too. I tried to move to a closer strike price again on the September OEX puts but my order wasn't filled. I'm prepared to take yet another loss on the existing trade if I can get the closer to the money puts. I am still a believer in this idea because the volume on this rally has been pretty anemic. However that could just be a summer phenomena. Time will tell on that. GE was flat on the day, volume extremely light. This September put trade has lost about half of its value. It may be time to pull the plug. Gold lost a couple bucks on the futures today. The US dollar broke above its recent consolidation to the upside. This isn't bullish for gold but gold is somehow hanging in there without a decline. SO far that is. The XAU was off 7/8. ABX and GG had slight fractional losses, while NEM was flat. Volume was light once again. My October ABX calls are still showing a loss. Mentally I'm feeling a bit drained, had a tooth pulled today. It appears that the major stock indices are poised to hit new all time highs. My idea for the September puts has failed pretty badly so far. I'll probably try to get to a close strike price tomorrow and if that doesn't happen I'll simply stand pat with what I've got. Short term overbought now for the stock indexes. Gold is going nowhere fast and silver just keeps going down. With a rising US dollar, things are not looking good from the long side of the precious metal complex. Perhaps all my thinking is just wrong at the moment. It's possible. I'll consider what to do overnight. We'll see if the foreign markets follow the Dow higher and get ready for Wednesday.
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