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Wednesday, April 22, 2015

Continuing higher as the Dow rose 88 points on average volume.  The advance/declines were positive.  Still trying to get to new all time highs for the major stock indices but not there yet.  The summation index is tracking sideways.  The breadth hasn't been all that great heading up this time.  So perhaps some more backing and filling is necessary.  But that is a guess on my part.  One solid up day with good breadth could change things.  No SPY trades for now.  GE finally showed some life and rose almost 1/3 on good volume.  There was plenty of volume yesterday in the GE June 27 puts and calls.  Way above average and the open interest expanded.  I don't know what it means but the GE June 27 calls were on my radar even before yesterday.  Waiting for GE to get oversold before purchase.  Gold fell over $15 on the futures today.  The US dollar finished the session little changed again.  The XAU dropped 1 7/8, while GDX shed 2/3.  Volume picked up to the downside.  Not sure what to make of it but it could be the beginning of another leg down in the precious metals complex.  Mentally I'm feeling OK.  The small stocks continue to be holding up well here and that lends to the bullish cause.  However the short term technical indicators are in the overbought zone.  They could stay that way though if we continue higher.  It is looking as though last Fridays decline was a one day affair.  I'm going to hold off on any option purchases for this week.  That is the game plan for now.  Patience is also advised for calls on the gold shares.  It appears that we have just rolled over there.  Time will tell on that.  We'll see if the foreign markets follow the US higher overnight and see what happens tomorrow. 

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