Tuesday, February 07, 2017
Another day of basically going nowhere as the Dow added 37 points on a little less than average volume. The advance/declines were negative. The summation index is trending sideways. The S&P is trying to break out to new highs but with no success. I do think that it is going to happen though and sooner rather than later. I did purchase some SPY February calls today. They are showing a slight loss. My entry could have been a lot better but I do think that this is a trade that will work. GE was off a dime and the volume was light. Short term oversold for GE and if it can finally get going to the upside, that would bode well for the overall market. Gold had a slight gain on the futures despite strength in the US dollar again. The XAU and GDX had fractional losses on average volume. Mentally I'm feeling a bit tired. I'm not exactly 100% recovered from my recent cold. So the next trade is on and it is one that probably shouldn't be held for too long. In this case, that means getting out before the weekend. Right now Thursday looks to be the day to sell. But we'll have to see how it goes tomorrow. We're still short term overbought for the S&P 500 but I think we'll stay that way. I could be wrong. I do expect some upside for this index tomorrow. How much is the question. As I have said before, there is no resistance once we pass the 2300 barrier. If we can get by there on good volume, the trade will work. Asia was slightly lower and Europe mixed overnight. We'll see how things go tomorrow.