Wednesday, February 08, 2017
Another day of listless trading as the Dow fell 35 points on average volume. The advance/declines were positive. The summation index is trending sideways. The overall market was stronger than the Dow. The market is still trying to make up its mind what to do here. I did expect strength here and we did not see any. When the market doesn't do what you expect you have to sit up and take notice. Perhaps my view on things is wrong here and the resistance won't get broken. My SPY February calls are still in the red. This is a trade that needs to be exited by the close on Friday. GE was off 1/8 on average volume. GE did break to a fresh low today. Gold was up a buck on the futures and the US dollar was little changed. The XAU rose 1 3/8, while GSX added 1/4. Volume was light. Mentally I'm feeling OK. Not much else to say here as we are in a market waiting game. That doesn't bode well for directional option trading. I still think that this SPY trade can at least get back to break even if we see some rally in the next couple of days. The trouble is that the longer we go sideways, the more time premium that gets sucked out of this trade. There are only seven days left in the February option cycle. So we'll see. Europe and Asia were generally higher overnight. We'll keep an eye on what transpires tonight.