Wednesday, June 24, 2015
Stocks took a hit today as the Dow fell 178 points on light volume. The advance/declines were over 2 to 1 negative. This should move the summation index back down again but the pattern here appears more sideways to me. Perhaps more of the Greek drama fears again. But we can't just dismiss todays price action. The overall market wasn't as weak as the Dow which is a plus. But the TRAN got clobbered today and is about to make a new low. The ideal scenario would be sideways to lower into Monday and then purchase some SPY July calls. However the market rarely obliges you. GE was off almost 1/3 on average volume. Perhaps there will be a chance for the July calls here after all. Gold was off a bit on the futures as was the US dollar. The XAU and GDX were little changed again on light volume. There's a chance that ABX is putting in a bottom here but I'm inclined to wait for lower prices. Mentally I'm tired as I did not sleep much last night. It isn't a good idea to trade in a slower mental condition. The major stock indices are still overbought. We closed on the low of the session and that's bearish heading into tomorrow. The revised GDP final number was a non event. We've been in a trading range for the past 4 months. A breakout is overdue. I'm still a believer in new all time highs coming but I could be wrong. I'm going to have to look things over again tonight and come up with a game plan for tomorrow. Perhaps the sidelines will have some appeal but we'll have to see what happens overnight. Gold was still weak today so there wasn't any apparent flight to safety. A good nights sleep and a fresh start tomorrow is the best course of action in my mind. We'll see what unfolds in the foreign markets and go from there.