Monday, March 20, 2017
Slightly lower to begin the week as the Dow fell 8 points on light volume. The advance/declines were negative. The summation index is still trying to turn around here. No clear technical signal one way or the other for the S&P 500 on the short term. The Bollinger bands are converging though, which implies some type of big move is coming. Which way is always the question. The VIX remains low. The QQQ and COMPQ remain very overbought and have been for quite some time. This condition cannot last forever. I'd like to purchase some SPY April calls at some point though. GE was off 1/8 on light volume. Gold rose four bucks and the US dollar was barely higher. The XAU added a point and GDX rose almost 1/4. Volume was pretty light. Mentally I'm feeling OK. At this point we're waiting for the next catalyst to move stocks. Not a lot of economic data due this week. So we wait. No clear buy or sell signal for the S&P at the moment. So we'll have to remain patient for now. We have plenty of time n the April option cycle for some kind of trade to develop. Ideally we would head lower to set up a call trade but the market rarely delivers what you want. Asia was mixed and Europe slightly lower in overnight trade. We'll be keeping an eye on things tonight.