Thursday, May 26, 2016
A quiet and mixed market today as the Dow fell 23 points on very light volume. The advance/declines were slightly positive. The summation index is heading back up. Waiting to hear from Yellen tomorrow was the market mood for today. The very light volume is a concern and tomorrow is a Friday ahead of a long holiday weekend. I'd expect players to head out early after the Fed chiefs speech. I'm still leaning towards getting some SPY calls on a pull back. But the lackluster volume makes all trades suspect. To break the overhead resistance will take a decent push. I don't see that happening in this environment. GE was off a few cents and the volume was light. Gold dropped $4 on the futures and the US dollar lost ground as well. The XAU and GDX had slight fractional losses on very light volume. Light volume all the way around continues to be the theme. Mentally I'm feeling OK. I'll most likely let tomorrow pass as there is no reason to attempt anything before the weekend. The short term technicals for the major indices remain overbought. There is no reason to try and guess what will happen next. I will simply once again have to be patient and await a decent signal. We are in a seasonally positive spot for stocks but it doesn't last too long. Perhaps waiting to try the June SPY puts later in this option cycle will be the next trade. We'll have to see where things go from here. We do have the employment report and a Fed meeting still to go in the June option cycle. So volatility will return as well as opportunities for profit. Hopefully I'll be up to the task. For now it is watch and wait. Foreign markets were generally slightly higher or little changed overnight. We'll close out the week tomorrow.