Monday, February 06, 2017
A quiet start to the week and we were lower for all of the session. The Dow fell 19 points on light volume. The advance/declines were negative. This may put the summation index back in a sideways trend. There was no follow through to the positive action on Friday and that could be a concern. I do expect some strength here in the very near term and did place an order for the SPY February calls but wasn't filled again. If there is weakness tomorrow, I'll probably try this trade idea again. We are more overbought than oversold at this juncture though. The potential set up is still there but it isn't as strong as it was last week. GE was off a few cents and the volume remains light here as well. I'm laying off the call trade there for now. Gold continues to hold traders interest as the futures rose $15 despite a rose in the US dollar. The XAU was higher by 3 1/4, while GDX added 7/8. Volume was good. I still think that the fundamentals for gold a re negative though. Mentally I'm feeling OK. Less than 2 weeks to go in the February option cycle. I'm looking at a very short term trade for the SPY this week. If we are lower at some point tomorrow, I will probably give it a try. Timing, as usual, is everything. Not a lot of data to trade off of this week so we will have to see what happens. February isn't a seasonally good time for stocks either. But my work is showing that getting long on weakness tomorrow might work for a couple of days. So we'll see. Asia was higher and Europe lower overnight. We'll keep an eye on the overnight developments.