Tuesday, May 23, 2017
Up another 43 points today for the Dow on light volume. The advance/declines were positive. The summation index is heading back up but not with any conviction just yet. Approaching new all time highs again for some of the major stock indices. However the volume here is light and that is a concern. The small stocks were under performers again and that is another problem. I've been bullish for quite a while but that is beginning to change. If we do continue higher for the next couple of days on light volume, I'll be looking for the SPY June puts. GE was up a dime and the volume was light. Gold was lower as the US dollar got a bounce. The precious metal futures lost $10. The XAU shed 2 1/3, while GDX lost 1/2. Volume was average. I'm still considering a gold share call trade with an extended time period in the coming weeks. However for now I have to wait for an oversold condition and we are not close to that yet. Perhaps in June. Mentally I'm feeling OK. Nothing but higher prices since the Trump debacle of last week. It is appearing to be a one day wonder but the upside volume seems to be drying up to me. Who knows? Maybe we'll get the high volume breakout that I've been looking for. The problem for me is I do not see where that would come from. We've got the Fed minutes tomorrow and the GDP revision on Friday. Will that be enough to move us forward in a big way? I don't think so. The S&P 500 has been sideways since mid-February. It looks like a distribution top to me now, since it has taken so long to form and really nothing has happened to break prices higher. The market has ignored a lot of bad news. But unless price bursts higher soon, I'll be looking to get some puts. June is not the kindest month for stocks either. Asia was mixed and Europe generally higher overnight despite yet another terrorist attack in England. We'll see what tomorrow brings.