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Tuesday, April 07, 2015

Yesterday was a one day reversal to the upside on the weak employment report.  Today was a one day reversal to the downside as the Dow fell 5 points on light volume.  The advance/declines were negative.  The overall market was weaker than the Dow.  We are still searching for a trend here as the market has been basically sideways for while.  The short term technical indicators are trying to move to the upside but there is no sustained momentum.  My SPY April calls remain in the red.  GE was off 1/8 or so on very light volume.  GE cannot get anything going to the upside and my GE April calls will end up dead.  Unless we see a huge rally in the market or blowout earnings numbers, this trade is a loser.  Gold lost $8 on the futures as the US dollar had a strong day.  The XAU lost 1 3/8, while GDX shed 1/2.  Volume was light.  The gold shares have had some strength lately but now are short term overbought.  Mentally I'm feeling OK but physically I'm still under the weather.  The market continues to frustrate both the bulls and the bears.  Over the weekend it appeared that the bottom was ready to fall out on the employment report.  The S&P 500 futures had sold off over 20 points.  But then Monday morning came around and the market finished the day to the upside.  Today we saw follow through progress early in the day to only have it all vanish in the final hour.  That certainly isn't bullish.  So we'll have to see what happens for the rest of the week.  The summation index did turn back to the upside yesterday.  I think that the upside in the gold shares might be over.  ABX was the correct choice because it certainly out performed the gold share indices.  I'll be looking to get some calls there again when gold begins to drop.  I'm considering going out to October and there is no hurry to purchase.  I'll be trying to get some rest tonight and we'll follow things as they happen tomorrow.

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