Wednesday, April 20, 2016
We finished off the highs of the session but the Dow still managed a gain of 42 points on good volume. The advance/declines were positive. No real news to speak of. The summation index continues higher. We're still short term overbought for the major averages. GE was flat on the day and the volume remains light. Earnings out on Friday. Gold was flat on the futures session but dropped in the aftermarket. The US dollar held the 94 level once again and was higher on the trading day. The gold shares had a one day reversal to the downside as they opened higher and closed lower. The XAU lost 1 1/2, while GDX shed 3/8. Volume was good. No trades in mind here. Mentally I'm feeling OK. Not much else going on at the moment. The extra week in the option cycle really adds to the premiums and makes trading early in cycle not the best idea. Unless there is a really solid signal, patience is the prudent course of action. There is no reason to trade just for the sake of trading. I'm still leaning towards the SPY May puts in the next couple of weeks. Foreign markets were generally higher overnight, with weakness in China. We'll see what the ECB has in store for tomorrow.