Monday, April 20, 2015
Back to the upside as the Dow gained 208 points on light volume. the advance/declines were over 2 to 1 positive. Sometimes the day following option expiration has the opposite price action of the expiration itself. This occurs quite frequently. We'll have to see how the rest of the week plays out to get a better idea of where we are going. The small stocks and the TRAN had good days and that is a plus for the bulls. The summation index did roll over on Friday but todays action should bring us back to at least sideways there. No SPY trades right now. GE was off 1/4 and the volume remains heavy. We still haven't made any gains here after the restructuring announcement. However I am still in the camp of getting some calls if we get back to $26.50. That is the idea here for now. Gold was off almost $10 on the futures as the US dollar rose today. The XAU and GDX had slight fractional gains on light volume. No trades for me in the gold shares until they get oversold and they aren't even close to that. Mentally I'm feeling OK. A whipsaw market for the past two days and that isn't easy to attempt to trade. We've just rolled into the May option cycle so there is no hurry to act. Patience is needed now until we get a decent signal. However if by chance we break out to the upside, we need to get on board because there is no overhead resistance. I thought perhaps we'd break out last month but we didn't. Keep an eye out for that. The gold shares continue to outperform but the volume is light. Plus gold itself does not look interesting right now. I'm simply going to wait for a set up here but I don't know how long it will take. The seasonal timing for gold here is not bullish as well. There is no rush to do anything yet. We'll watch what happens in the foreign arena overnight and go from there.