Thursday, April 27, 2017
A day of hanging around as the Dow rose 6 points on pretty good volume. The advance/declines were even. The summation index is moving up. The McClellan oscillator did give a signal yesterday for a big move in the next couple of sessions, so we will have to wait and see what happens tomorrow. Perhaps the market will move on the GDP report. I'm still looking for new all time highs in the Dow and S&P 500 before expiration. I adjusted the open order that I have for the SPY May calls. I think that next week around Wednesday would probably be the ideal time to enter this trade if the market cooperates. But if it gets filled before that, I still think that it will work. We've got the end of the month tomorrow as well. GE dropped around 20 cents again on good volume. The lack of upside for GE would normally be a problem for the market but it has been ignoring this so far. It is something to keep an eye on. Gold was little changed on the day and the US dollar was a bit higher. The XAU shed 2 1/4 and GDX lost almost 1/2. Volume was good. Mentally I'm feeling OK. Still short term overbought on the technical indicators for the S&P and it is touching the upper Bollinger band. However in rallies we can stay overbought for quite some time. That is what I think we are seeing here. The best case scenario from here would be a sideways consolidation into the middle of next week and then another leg higher. That would let some time premium get sucked out of the SPY May options and perhaps give me the opportunity to take a position. The small stocks remain strong here and that is a positive going forward. Asia was mixed and Europe lower overnight. We'll close out the week and the month tomorrow.