Friday, August 07, 2015
Lower again as the Dow fell 46 points on average volume. The advance/declines were negative. The employment report came in as expected and we had weakness from the start. We did come back in the final hour and that is bullish in my book. Short term oversold for the major stock indices. I think that weakness Monday can be bought. I will be looking at the SPY calls to start the week. Today was not as volatile as I expected but the volume remains good. The S&P 500 is trying to hold its 200 day moving average. GE was off 1/4 on summer average volume. Trying to hold on at the 200 day here as well. The technicals here are oversold on a short term basis. Gold was up $5 today as the US dollar was a bit weaker. Both the XAU and GDX were little changed after being higher early. The gold shares could not hold their gains and that is not a positive. Volume was average. ABX was up a bit but could not hold its gains as well. Volume was heavy. My ABX October calls remain losers and it doesn't look like they will ever get back for a reasonable loss. I'll give this trade a couple more weeks but it will probably go down as a disaster. Mentally I'm feeling OK. The employment report is now out of the way and not much economic data due next week with the exception of retail sales. The summation index is moving sideways and we are near the zero line. I would like to try the SPY August calls at the beginning of next week if we see weakness on Monday. That is my thought at the moment but I will consider this trade over the weekend. August can sometimes be a dicey month for stocks. We have yet to see the summer doldrums this year but they could appear at any time. That would definitely not help with any option trades. Still two weeks to go in the August option cycle. Gold and the gold shares remain mired in a slump and I don't see any way out of it on the horizon. We are in the favorable seasonal time period for this group but it hasn't helped so far. So we wait. It would probably be a good idea to perhaps take a break from the game because it is summer. But you can't afford to miss anything as well. It is never easy in the game. I'll check the charts over the weekend and come up with a decision about what to do next week. For now it's Friday afternoon and time for a break.
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