Friday, June 17, 2016
Back to the downside today as the Dow fell 58 points on expiration heavy volume. The advance/declines were positive. Getting a mixed bag here with the breadth. The NASDAQ was relatively weaker. The summation index continues lower. There is a positive RSI divergence on the S&P hourly charts. Plus the short term technical indicators remain oversold. But we are still held hostage with the headline risk out of England. Perhaps the wise choice will be to let that pass and go from there. GE was off a few cents and the volume was lighter. The gold futures came back today and we are making another run at $1300 there. The US dollar dropped today. The XAU and GDX had slight fractional gains on light volume. Gold will probably move off of the vote in England as well. The short term technicals here remain overbought. Still in a trading range for the gold shares is my view. Mentally I'm feeling OK. Hard to tell which way to go here and careful study will be required over the weekend. High option premiums don't help things at this point with the July option cycle just beginning. I do not think that England will vote itself out of the European Union but I certainly don't know for sure. How can we profit from this event is the more important question. The summation index is still moving down and I do not want to go against that. But I will have to take a look at everything over the next 2 days to decide what course of action or inaction to take. Once we get England out of the way, things could slow down with the beginning of summer and the July 4th holiday coming up. That would not be helpful for the options game unless you are writing them. So we'll see. Plenty of things to ponder. For now it's Friday afternoon and time for a break.