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Tuesday, February 28, 2017

Well we couldn't make it to thirteen days in a row as the Dow fell 25 points on good volume to close out the month.  The advance/declines were almost 2 to 1 negative.  This should turn the summation index lower.  The overall market was weaker then the Dow.  The market will move tomorrow off of what Trump says tonight.  Event driven markets are sometimes hard to figure.  That would be the case right now.  We are still overbought regardless.  The VIX has risen here and we are overdue for some decline or a pause sideways at the least.  I'm still waiting for the negative divergence at this point.  GE was off 1/8 and volume picked up.  Gold continued to fall as the futures lost 10 bucks.  The US dollar was flat once again but the daily candlestick chart looks like it has 3 bullish hammers.  The XAU and GDX finished little changed on good volume.  Mentally I'm feeling OK.  We'll get the beginning of March tomorrow and there could be some positive money flows.  However the overriding theme of the day will be Trumps plans to Congress and the markets reaction to them.  We are long overdue for a pullback, so keep that in mind.  I'm staying on the sidelines for now but do anticipate some kind of SPY trade in the March option cycle.  Europe and Asia were mostly higher last night.  We'll get Trumps speech out of the way and see what happens tomorrow. 

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