Friday, March 24, 2017
Volatility returns as the market continues to be held hostage by a health care bill of all things. We bounced around and finished with a loss of 59 points on light volume. The advance/declines were barely positive. The summation index is still trying to turn around. The overall market was stronger than the Dow and the small stocks continue to hold up well. We're short term oversold and I'm leaning towards buying weakness if we get any on Monday morning. I do not think that we are on the verge of a major pullback even if the vote on this bill isn't approved as the market wants. Headline risk is a tough trading environment. GE was up 1/8 on light volume. Gold was flat on the futures as was the US dollar. It's as if we're in suspended animation until this health care thing ends. The XAU and GDX had slight fractional losses on very light volume. Mentally I'm feeling OK. The light volume tells the story as traders are waiting to see how this vote on health care goes. I can make a case for purchasing the SPY April calls on Monday, unless we see a rally from the start. Technically this trade would make sense but when the market is fixated on the headlines, you never know what is going to come next. It would be a plus to have the summation index turn around but that hasn't happened yet. Plenty of time in the April option cycle so there is no need to be in a hurry. I'm going to have to look over the charts this weekend and determine a course of action. I do think it will be a plus to get this health care thing out of the way for now. Even if it doesn't pass. So plenty to ponder over the next couple of days and I'll have to be ready at the open on Monday. Now I have just seen that this bill has been shelved and there won't be a vote. So the indecision lingers. Once again I'll have to revamp my trading plans for next week. I suppose that I'll have to keep an eye on the news over the weekend closer than usual. This isn't the kind of trading environment that I prefer but it is what it is. Asia was higher and Europe slightly lower last night. It's Friday afternoon and time for a break.