Tuesday, July 05, 2016
Lower to begin the week as the Dow fell 108 points on light volume. The advance/declines were shy of 3 to 1 negative. The overall market was weaker than the Dow. The summation index is still heading up. We did come back from the lows of the session. Probably just taking some money off the table ahead of Fridays jobs report. But that's a guess as usual. Still short term overbought on some of the short term technical indicators. I'm still thinking that we will see new all time highs in the S&P 500 by the July expiration. After that, who knows? GE was off a few cents on average volume. Gold was up about $5 on the futures and the US dollar had a good day as well. The XAU was up a point and GDX rose almost 2/3 on average volume. We've broken out on the gold shares from the consolidation zone but the volume hasn't been all that spectacular. We'll see how that plays out going forward. Mentally I'm feeling OK. A nice long weekend to forget about the last losing trade and now a fresh start. My thinking right now is that I'm going to let the employment report get out of the way and look out to August and September. That could change of course but that is the plan for now. I expect that the market will slow down now after the English exit vote fiasco. I could be wrong. So the strategy for me here is to sit tight and wait for the next decent technical signal. Europe and Asia were both lower overnight. We'll keep an eye on the overnight developments.