Friday, February 06, 2015
A one day reversal to the downside to finish off the week as the Dow fell 60 points on heavy volume. The advance/declines were almost 2 to 1 negative. It's isn't a surprise to see some profit taking or selling after the week we just saw. I would not be too worried about today or the next few for that matter. I would like to see some weakness to set up a decent move higher in expiration week. That will be the next attempt at a trade. The employment report was a bit stronger than expected but it wasn't a dramatic market mover. The summation index continues higher. GE was on up a couple pennies but was higher early. Volume was light. Maybe this March call trade for GE isn't going to work out. Six weeks left there. Gold fell hard on the employment report as the US dollar rallied. The precious metal futures dropped almost 30 bucks. The XAU was off over 4 and GDX lost 1 1/4. The technical indicators for the gold shares have rolled over. USO was up again today though. Perhaps we've seen the worst for the oil sector. Mentally I'm feeling OK. I'm sticking with my hypothesis of new all time highs in the major stock indices before February expiration. I'll try to get some SPY calls next week on weakness. I think we can get to 2100 on the S&P 500 within this time frame. There is one less day going out from here due to the holiday a week from Monday. But I am confident that this is the right idea and will try and make some money from it. As always timing will be the key and hopefully this time around I'll be able to make the proper adjustments. But you never know. Gold had a tough week. But we have yet to break the up trend line that began back in November. That comes in at about the $1210 level. If things get contained there perhaps the gold share calls can be looked at for a trade. No rush to do anything though. I'm going to try and rest over the weekend to be ready for next week. I'm practically back to feeling normal after being ill. Plenty of charts to check in the next two days. For now it's Friday afternoon and time for a rest.
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