Tuesday, March 28, 2017
Looking for higher prices and we got them today as the Dow rallied 150 points on light volume. The advance/declines were 3 to 1 positive. This should turn the summation index back up. I tried to get some SPY April calls but was not filled. I did however place an order for the SPY weekly call that expires on Friday. I did this due to the short term nature of the signal that was in place. That order was filled but I could have done a better job on the entry. That trade is showing a nice profit for now but it has come well off of its highs for the day. Last night the McClellan oscillator gave the signal for a significant move in the next 2 sessions. We got that move today. I decided to hold on to this trade until tomorrow, since that was the day that my work said would be positive. Perhaps that was a mistake. GE was up over 1/8 and the volume was about average. Gold lost some steam as the overall stock market moved higher and the futures dropped $5. The US dollar was higher today. The XAU lost 1 7/8, while GDX shed almost 2/3. Volume was good. Mentally I'm feeling OK. Trying a different tack, trading a weekly option. So far it has worked out OK but anything can happen. It is a trade that should be exited tomorrow and probably even today. Once again the short term nature of the position increases the risk rather dramatically. But I did not like the way the premiums on the regular April options were acting and the signal was in place. I still like the idea of the SPY April calls but will have to wait for another entry point if we get one. The turning around of the summation index is a plus for the bulls. The small stocks continue to act OK but we could actually be developing a trading channel. Time will tell on that. So I'll be keeping an eye on things overnight and take it from there. We've got the end of the month coming up on Friday as well. Europe and Asia were both higher overnight. We'll see how it goes tomorrow.