Thursday, March 24, 2016
A one day reversal to the upside as the Dow opened lower and closed higher. It finished the day with a slight gain of 13 points on light volume. The advance/declines were about even. The summation index is heading sideways. It's possible and maybe even likely that the decline we just saw is all we're going to get here. I really can't say for sure. I'm going to have to look at everything over the weekend. It was a light volume week, so it is hard to figure out the price action that we saw. I'm getting the feeling now though that this was just a pause before we go even higher. I could be wrong. GE was pretty much flat again on light volume. Gold was off $6 on the futures as the US dollar was a bit higher. The XAU rose 1 1/3, while GDX added 3/8. Volume was light. Mentally I'm feeling OK. There will be plenty of time this weekend to consider what to do next week. I now have mixed feelings as to which way to go next. You can kind of make a case for either way. We'll get the end of the month and the quarter to deal with. Plus the employment report on Friday. All the major players should be back as well. I'll go over the charts and decide from there. Europe and Asia were all lower last night. Plenty of foreign markets will be closed on Monday. So perhaps we won't get back to normal trading until Tuesday. What I will try to do above all else is not make a trade just for the sake of trading. I did not have any trades in the last option cycle and there is the chance that I'm getting a bit restless. It still appears that despite the slight decline we are more overbought than oversold on the shorter term technical indicators. Plenty to consider but for now it's Thursday afternoon before a long weekend. Time for a break.