Another day to stay out of the markets, luckily we called it right on the nose this morning as there was no money to be made with the indices finishing pretty much where they started after an exciting false start in the morning.
11,050 is becoming a problem spot for the Dow and the Nasdaq still can’t get out of it’s own way, dragged down by the SOX as usual.
Also as expected, the S&P mirrored the movement of the oil sector to the point where you could almost apply the valero rule to SPY. What has happened is that oil and other commodities have just grown to take up far too much of the S&P and it will take a long and painful correction before other sectors can regain a dominant position:
http://finance.yahoo.com/q/bc?t=1d&s=%5EGSPC&l=on&z=m&q=l&c=vlo%2Cxom%2Cuso
Oil is back to being manipulated as it went up .70 by 11:30, plunged over $1 to $68.75 by 1:00 before “recovering” back to a very false looking close at $69.35.
Nothin’ spells lovin’ for nuclear war like G-O-L-D and the Korean missile news was just enough for that market to make a nice recovery, also from a morning dip. $560 is forming somewhat of a base and is close enough to my target that I’m looking at miners again. Also, GOLD (the stock) has really started to become a great leading indicator. You could have used its turns for a buy and sell signal on GG or AU today and done very well:
http://finance.yahoo.com/q/bc?t=1d&s=GOLD&l=on&z=m&q=l&c=au+gg
As expected, GG outperformed the sector with a 3.5% gain on the day but slumping oil prices may put a small brake on a gold rally so we need to wait for inventories to clear out. NEM is lagging right now. NAK has been rolling quietly along throughout the gold drop and has radically outperformed since my mid-may pick!
http://finance.yahoo.com/q/bc?t=3m&s=NAK&l=on&z=m&q=l&c=gld
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CAT was thankfully a don’t short at the open above $70 as they had a great day today, gaining 1.5%.
AAPL threatened but fell back and today would have been a perfect day to enter our income producing position.
ADBE continues to try to ignore the rest of the market but I’m not sure they can keep it up. The $30s ran up to $1 (up 66%) before pulling back to .90 at the close.
The LVS Sept $60 puts did come down to $2.90 so we’ll see how this one plays out.
GS went the wrong way which only makes me want them more! The $140 puts finished at $2.35 (down 15%). We’ll see how they handle the $145 mark tomorrow.
