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Monday, June 01, 2020

We begin the month of June with the Dow gaining 91 points on good volume.  The advance/declines were 3 to 1 positive.  The summation index is moving up.  The overall market fared better than the Dow.  The short term technical indicators for the overall market remain overbought.  The pandemic virus remains, now joined with protests and looting in the streets.  The market doesn't care, at least that's what price is saying.  So take note.  The trend is up until proven otherwise.  GE was up about twenty cents on average volume.  Gold was up just a bit on the futures as the US dollar was lower.  The XAU gained 3 points, while GDX rose a point.  Volume was very light.  It was nice to see the gold shares move higher without the price of gold doing much.  But with such light volume it isn't really a ringing endorsement for the gold share indices.  The short term technical indicators here have turned back up.  However the lack of involvement is troubling and I'm not sure this move higher has legs from here.  I certainly hope it does.  My GDX June calls are still in the black.  Mentally I'm feeling OK.  The VIX didn't do much today and isn't generating any kind of signal that I can pick up.  The economic data out today was weak and I don't expect that to change this week.  Employment data due Friday is the main headline.  It won't be pretty but the market has been able to shrug off whatever bad news that we've seen lately.  We are technically overbought but have and can stay that way for weeks.  I don't have any SPY trades in mind at the moment.  I'll continue to focus on the GDX call trade for now.  Asia was higher and Europe mixed to begin the week.  We'll keep an eye on the overnight developments. 

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