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Friday, February 20, 2015

And away we go.  The Dow climbed 154 points today on news of another deal to save Greece.  The advance/declines were 2 to 1 positive but the volume appears to be light.  We've gotten above the 2100 level in the S&P 500 and there is no overhead resistance.  Todays intra-day market pattern was the same as all week.  A sell off to start the day and then buying for the remainder.  We are going higher it is simply a matter of how much.  At this rate a pullback to purchase March calls doesn't appear in the cards.  But you never know.  GE was up 18 cents on average volume.  Right at the 200 day moving average now.  My GE March calls are back to break even.  4 weeks to go in this trade.  Looks like it might actually show a profit at some point.  Gold was off a couple bucks on the futures and a few more in the aftermarket.  A deal for Greece won't help the price of gold.  The US dollar was little changed.  The XAU and GDX were off fractionally.  NEM was up over a buck on its earnings today.  Perhaps on the next gold share trade NEM and ABX will show the most single stock potential.  They rose on their earnings reports while the previous leader GG fell.  Just a thought.  Mentally I'm feeling OK.  The short term technical indicators for the major stock indices remain overbought.  But we are breaking out to the upside here and that cannot be ignored.  The measuring objective for the S&P 500 on the weekly chart is 2200 from here at the minimum.  Now I don't know if we will get there in the March option cycle but we'll get there eventually some time this year.  I still expect this to be a very good year for the stock market.  We'll have to wait and see if next week gives us a chance to buy some SPY calls.  Gold is unloved now and patience is required to try another long trade in the gold shares.  April calls will be the target but purchase will have to wait until some point next month.  I'll be checking the charts this weekend in hopes of coming up with some new ideas.  For now it's Friday afternoon and time for a break.

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