Monday, April 17, 2017
We had a gap to the upside to start the day and the market never looked back. The Dow gained 183 points on pretty light volume. The advance/declines were 3 to 1 positive. This should move the summation index back to the upside. After Fridays action we did have both short and medium term buy signals on a couple of my indicators. I did place an order for the SPY April calls this morning but there was no pullback and it wasn't filled. Today was the type of day I was looking for last week. But what can you do? It is frustrating sometimes though. The volume is light but I do believe that this is the beginning of something that will take us to new all time highs. I'll now look to the SPY May calls for the next trade. GE was up 8 cents and the volume was light. Gold lost a couple bucks on the futures and the US dollar finished a bit lower. The XAU and GDX were both little changed on light volume for the session. Mentally I'm feeling a bit tired, did not sleep well. Some buyers showed up today and I'm sure we saw some short covering as well. The VIX got to the overbought level where reversals take place. We saw all of that today. It's also options expiration week and the positive bias should be in effect. Declines can be purchased in my opinion. The only thing that would change my mind is if we're down tomorrow as much as we went up today. I do not expect that to happen despite the light volume today. I always say that light volume rallies cannot be trusted. So we'll see how it goes tomorrow. After last weeks debacle of a trade, I'm trying to stay positive and on an even keel. We'll see how that goes. Asia was mixed and Europe lower overnight. We'll keep an eye out on the developments tonight.