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Wednesday, February 25, 2015

It's getting a little sloppy here as the Dow gained 15 points on average volume.  The advance/declines were positive.  The overall market was weaker than the Dow.  The very overbought short and medium term condition cannot last forever.  We really need to see some pullback.  If and when that occurs should give the opportunity to try the SPY March calls.  Getting back to the 50 day average would be a great set up but I don't think that's in the cards.  GE exploded to the upside on heavy volume.  It gained 1/2, which is a big move for this stock.  My March GE calls are now solidly in the black.  The technical indicators are also very overbought here so I may just dump the calls tomorrow if we get some follow through.  GE moving higher does bode well for the overall market.  Gold was up around $5 on the futures and the US dollar was lower.  The XAU gained 1 3/8, while GDX rose 1/3.  Volume was good here.  I'm still advocating patience for the gold shares at this juncture.  I think the April calls can be purchased in March as a potential trade down the road.  Mentally I'm feeling OK.  2 days to go in February and I guess the question is will we see some of the gains for the month taken here?  It wouldn't be a surprise.  Plenty of time in the March option cycle for a successful trade.  I cannot explain the move up today for GE.  The news out was nothing special.  Why it decided to move today is beyond my scope of knowledge.  GE is getting pretty far from its 50 day moving average.  I'll ponder what to do here tonight.  We'll watch the overseas action tonight and see what happens tomorrow. 

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