Wednesday, June 10, 2015
The expected bounce arrived as the Dow rose 236 points on average volume. The advance/declines were shy of 3 to 1 positive. The summation index is still heading lower. I'm not sure if today was simply a one day wonder or the start of something that leads to new all time highs. I'd like to think that it's the latter. My SPY June calls are doing good despite the poor timing on the entry. I perhaps should of just sold them today though. We are right at a short term down trend line that began about 3 weeks ago for the S&P 500. We'll move off of the retail sales data tomorrow. GE was up almost 1/3 on average volume. It appears that I've missed this trade for the July calls. However the market goes where it wants and things could turn around tomorrow. Gold was up almost $10 on the futures as the US dollar had a weak session. The XAU was up 7/8 and GDX rose an 1/8 on light volume. The gold shares didn't really follow gold higher and that isn't bullish. NEM has turned into an under performer now. I'm going to try and remain patient on the gold shares but do want the October calls here at some point. Mentally I'm feeling OK. So we got the bounce and now what? It was technically expected and it showed up. But where do we go from here? I'm hoping for some upside follow through tomorrow but anything can happen. I'm considering holding on to this trade longer now but that may not be the proper strategy as well. As usual, the game is never easy. The major stock index daily candlestick charts look to have bullish set ups on them after todays price action. The short term indicators also have room to run higher. So there will be a lot to think about tonight. I don't think that recent upside in gold the past 3 days is the start of anything substantial. I could be wrong. The short term technical indicators have turned up here as well. The ABX October calls are still on my radar. We'll see if the foreign markets can follow the Dow higher and then await the market reaction to the retail sales numbers.
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