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Friday, May 05, 2017

Moving higher today as the Dow rose 55 points on average volume.  The advance/declines were better than 2 to 1 positive.  The S&P 500 hit a new all time high.  The summation index is trying to move back up.  The employment report was a bit better than expected but the market didn't really get going to the upside until midway through the session.  Short term overbought now for the S&P but it's been that was for days.  I canceled my open order for the SPY May calls as we didn't get any downside to get it filled.  It appears that this trade has passed me by.  I do not think it would be a good idea to chase it now.  I do expect higher prices early next week though.  If we do see some selling, I may try it again.  But for now it looks like missed opportunity.  GE was up a couple cents and the volume was really light.  The gold futures were up a buck and the US dollar was lower.  The XAU gained 2 points, while GDX added almost 1/2.  Volume was average.  Mentally I'm feeling OK.  Two weeks left in the May option cycle and it doesn't look like I'll get a set up for a trade.  The next logical way to go would be the SPY puts if we continue higher.  Which I think that we will.  There isn't any overhead resistance for the S&P 500.  There was plenty of chances over the past week for the market to drop but it simply trended sideways.  We have now broken out to higher prices.  The French election is on Sunday but the result really isn't in doubt.  It is probably already baked into the market.  I'm not sure what the catalyst will be to get things moving next week.  The employment report certainly didn't lead to the volatility that it normally would.  I still think that we're heading higher and the Dow should hit a new all time high next week as well.  I'll be checking the charts over the weekend to see if there is any trade that I can do next week.  However there isn't a set up as of now and I do expect higher prices in the beginning of the week.  Perhaps a fade of that will be the play.  We'll see.  Europe was higher and Asia mixed once again.  For now it's Friday afternoon and time for a break.

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