Tuesday, May 02, 2017
Another day of hanging around as the Dow rose 36 points on good volume. The advance/declines were barely positive. The overall market was weaker than the Dow for a change. The summation index continues higher. Still short term overbought on the major stock indices. I did place an open order for the SPY May calls and left it in overnight. We'll have to see some decline for it to get filled though. We've got earnings from Apple tonight and Facebook tomorrow. They probably will be market movers. Also we'll get the Fed statement tomorrow but I do not think that it will have much effect but I could be wrong. There's no expected change in policy forthcoming. GE was up a nickel and the volume was a little better. Gold was up a couple bucks on the futures and the US dollar was slightly lower. The XAU and GDX had slight fractional gains on light volume. Mentally I'm feeling OK. We've been moving sideways for a week now right at the overhead resistance. I really believe that we'll be breaking through to new all time highs in the coming days. Once we get through, there won't be any resistance left. Sometimes markets can remain overbought for quite some time. My guess is that we are in one of those times now. I could be wrong. However I am leaving the order for the SPY May calls out there. Ideally we'd see weakness ahead of the jobs report on Friday and then a rally to new all time highs on the reaction to the data. Things don't always go as planned in this game though. Europe and Asia were higher overnight. We'll keep an eye out on the overnight developments.