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Thursday, February 26, 2015

More churn and grind and going nowhere fast.  The Dow fell 10 points on average volume.  The advance/declines were slightly negative.  We will end the trading month of February tomorrow.  Probably some more selling but I don't expect anything major.  We are working off the short term overbought condition before moving higher in my opinion.  The trend remains up until proven otherwise.  If I'm lucky we'll get more of a pullback and a chance for the SPY March calls.  If not, I'll look for another trade elsewhere.  GE was flat on the session with average volume.  The daily chart is very overbought but I did not sell the March calls that I own.  The weekly chart shows that there is more room to go on the upside for GE.  With 3 weeks to go in the March option cycle, I've decided to hold on for a bit longer.  This may or may not be the right decision.  Gold was up 8 bucks on the futures despite huge gains in the US dollar.  That is bullish for the precious metal.  The XAU and GDX only had fractional gains.  I'm going to remain patient here for now.  Mentally I'm feeling OK.  The stock indices have tried to sell off on a daily basis only to come back each time.  This is a positive going forward.  The small stocks continue to move up and outperform.  This is bullish as well.  I'm not saying this is going to go on indefinitely but until it changes we have to stick with the trend.  Perhaps we will see some beginning of the month money flow in March.  But that's a guess as usual.  So we'll continue to monitor what happens overnight and close out the week and month tomorrow.

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