Recap for the week ended July 29, 2016
Today’s market looked like a mish-mash of nothing, however a look at the internals paint a different picture. Volume was 1.5:1 up and the advance declines were closer to 2:1.
This closed out a cyclically strong July, which is a continuation of what was supposed to be the middle of the worst 6 months of the year. You certainly couldn’t see that in the averages. The Dow and especially the S&P500 not only broke out to new highs, but the last 10 or 12 days have been a consolidation ABOVE the breakouts. This is generally very bullish action.
We had a small gain for the week in both stocks and options. We took a 30% gain by selling our CL August puts going into the earnings, and watched as they sank from $ .95 to close out the week @ $ .30 bid, well below our sale and the purchase price of $ .75. We had a small day trade loss on Fed day in the gold, but finished the week strong with gains in current positions in HL, FAST, and AA.
We will go into more detail and have some more trades Sunday night, I will close now and get to work on the Weekly Strategies….Have a great weekend…CAM
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