Monday, April 10, 2017
The Dow bounced around today and finished with a gain of a little more than a point on very light volume. The advance/declines were 2 to 1 positive. The summation index is grinding higher. We opened to the upside and then gave it all back and then some. Rallied good again and lost it all into the close. I had an open order in for the weekly SPY calls this morning and it was filled on the first drop of the session. The entry was not good. When I realized that the drop was going to be more than I expected it was too late. This is a very risky trade that lasts until the close on Thursday. It is showing a loss and I will be lucky to get out with any type of gain. That said, my work does show that there will be upside this week. However it may be too late to save this trade. GE lost a couple cents and the volume remains very light. Gold lost a buck or so on the futures despite a lower US dollar. The XAU and GDX had slight fractional gains on light volume. Mentally I'm feeling a bit tired. Good breadth today with no gain and that could be a problem. The lack of volume isn't helping matters for the bulls either. Volatility has returned for todays session. I'm in the next trade now and it really isn't the best set of circumstances. The technical indicators remain mid-range and the basically sideways market price action continues. I don't expect a major decline to start here. If my entry would have been decent then this trade would be in a better position for success. But we will have to go from here and work with what we've got. Not a lot of economic data due with retail sales the most important for the week in my view. However that will be released on Friday and the markets will be closed. I'd like to hold this trade until Thursday but we will have to simply see what happens. Asia was mixed and Europe lower in last nights trade. We'll see how it goes tomorrow.