Tuesday, June 21, 2016
Basically a drift higher as we remain held hostage by the vote in England on Thursday. The Dow rose 24 points on light volume. The advance/declines were positive. The summation index is trying to turn back up. The small stocks are still lagging. It is a wait and see market in my opinion. We had Yellen in Washington today and the market yawned. More of the same tomorrow I suspect. The technical indicators remain weak for the NASDAQ and better looking for the bigger cap indices. I will try my best not to do anything stupid ahead of the vote in the UK. GE was up 1/8 and the volume was average. The short term technical indicators here are overbought. Gold fell $20 on the futures as the US dollar was higher. The XAU lost 1 3/4, while GDX shed 3/4. Volume was average. Gold seems to be telegraphing that England with remain in the European Union but that's just another guess on my part. Mentally I'm feeling OK. Plenty of time in the July option cycle to put on a trade if a decent signal appears. What needs to be answered is after the results of the vote on Thursday, then what? We'll get the initial knee jerk reaction but what will be the trading driver after that? The S&P 500 short term technical indicators are mid-range, so you can make a case for either way. I'm pretty sure that I will remain on the sidelines this week and let the event driven market environment take care of itself. But who knows? Maybe I'll try something after Thursdays voting results are in. Foreign markets were generally higher but not by much in Europe. We'll keep an eye on what transpires overnight but it really is simply a waiting game for now.