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Tuesday, February 17, 2015

A one day reversal to the upside to begin a shortened trading week as the Dow gained 28 points on light volume.  The advance/declines were negative though.  The summation index continues higher.  Short term overbought on the technical indicators for the major stock indices.  The S&P 500 has reached the 2100 level.  Had I taken the SPY February call trade, this would be the time to get out.  I'm looking at the SPY March calls now.  We are due for a rest, perhaps after expiration week.  GE was flat and the volume was good.  My March calls there are still in the red.  The gold futures took a hit today despite the weakness in the US dollar.  The yellow metal fell over twenty bucks.  The US dollar dropped 1/3.  The XAU lost 2 1/3, while GDX dropped 2/3.  Volume picked up to the downside and that isn't bullish.  We are also in a weak seasonal period for gold.  I am going to look at the April gold share calls at some point in March.  Mentally I'm feeling OK.  I think we can trudge higher here for the stock indexes this week.  There isn't a lot of economic data due.  The Fed minutes tomorrow is probably the main event.  No real imperative trading ideas at the moment.  Sometimes you have to be patient and this is one of those times.  The February SPY call trade was missed.  So we are waiting on the next potential set up.  Although the stock indexes are overbought, I do not think that a short trade is the right idea here.  Getting long after a pullback is the preferred idea for now.  We'll watch the foreign markets overnight and go from there.

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