The market internals reversed themselves on Thursday stocks were up only marginally at the open and pretty much worked their way lower until a rally in the last hour brought them to down to a relatively minor 0.36% in the S&P500 and 0.42% in the Dow. The internals were roughly 1.5:1 down across all markets.
The US$ index slipped a bit when the market went risk adverse ( risk off ) but just like the indexes the greenback rallied to close only down 0.26%.
As quoted from this mornings’ letter, “I expect that Gold will test $1,308; it may well test the bottom of the Bollinger Bands near 1,290-1295.” The Gold did in fact test the $1,308 level with a low of $1,310 before rallying all the way back to close up $11.90 at $1,331 and $21 off the lows. I’m still not sure that the move is over to the upside but I’d clearly like to get off a short or buy some GLD puts around the $1345-1350 area using the same stop as noted in our earlier notes vs $129.29 stop close only. If it closes above this mark you don’t want to be short.
The best option for this would be to buy the 8/125.50 puts in the $1.55 area.
As to the Oil, it continues to hold the lows @ $44.55-44.53 bottoms for the last 3 days. If It continues to hold (which I strongly doubt), It could easily rebound to $46.00-46.50.
I would still buy the SCO anywhere near $89-89.50 looking for a move well into the high $90s to $100. Should it break $95, $105-$110 would be an easy shot.
I would also place an order for AA anywhere near $10.26 OB, or the 8/$10.50 calls @ $ .33 OB… CAM
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