Wednesday, March 09, 2016
The middle of the week and a middle of the road kind of day. The Dow rose 36 points on light volume. The advance/declines were better than 2 to 1 positive. The summation index continues higher. The overall market was stronger than the Dow. Not much to report about todays session. Waiting on the latest from the ECB tomorrow. GE was flat on the day and the volume was light. Gold was down over $10 on the futures. The US dollar finished little changed. The gold shares sold off early but came back with fractional gains for the XAU and GDX. Volume was average. Gold is hoping for more stimulus from the ECB as is the overall stock market. Mentally I'm doing OK. I'm still looking for higher prices for the S&P 500 before the March option expiration. Whether or not there is a trade there is the question. I'd like to see a lower entry point as the technical indicators remain more overbought than oversold. That's for the call side. For the puts, I'll need to see at least the 2025 level on the S&P before considering a trade there. With only seven days to go in the March cycle it really isn't looking promising at the moment. Gold and the gold shares really need a rest and perhaps we are seeing the beginning of that now. We'll see what the ECB has to say tomorrow and see how the markets trade off of that.