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Thursday, February 19, 2015

Lower today as the Dow fell 44 points on light volume.  The advance/declines were slightly negative.  The market has sold off at the open each day so far this week.  2100 is the resistance for the S&P 500 but I am quite sure we will make it thorough this barrier.  The small stocks continue to gain ground and that is a positive.  The summation index continues higher as well.  There isn't any overhead resistance once we get through 2100.  I'm hoping for a pullback to get some SPY March calls.  GE was off a couple cents and the volume was light.  Overbought here and stalling at the 200 day moving average.  Gold was up $7 on the futures despite todays rise in the US dollar.  The gain was a carryover from the aftermarket action yesterday.  The XAU was off 1 3/4, while GDX dropped 1/2.  This was in part due to the weak earnings from GG.  ABX rose on its earnings report.  I'm still waiting before trying the gold share calls again.  Mentally I'm feeling OK.  It is simply a waiting game at this point for the next trade.  We will close out the February options tomorrow.  There is no rush at the moment to do anything.  Markets are closed in Asia as well for the new years celebrations.  The S&P 500 remains in short term overbought condition.  Continued near term weakness would be the ideal scenario for getting some index calls.  However the market will go where it wants.  Once we get through the 2100 level on the S&P 500 with good volume, I'm pretty sure that we will see a sustained rally again.  Hasn't happened yet but it will at some point.  Nobody is interested in gold again and that is usually a good time to take a look at it.  The weak seasonal time period is a headwind.  I might try the April gold share calls sometime in March.  We'll close out the week tomorrow with expiration Friday.

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