Monday, May 15, 2017
We had an upside gap at the open and the Dow finished with a gain of 85 points on average volume. The advance/declines were 3 to 1 positive. This should turn the summation index back around but not out of the sideways pattern. There was no weakness in the morning to take the SPY May call position and it is probably too late now. I'll have to chalk it up to just another missed opportunity. With only 4 days to go in the May option cycle, any trade attempted now would have a ton of risk. I'm looking for the SPY to hit the 241 level at least. We hit a new all time high for the S&P today and there is no overhead resistance. GE was off almost a dime on good volume. No doubt that GE is not participating in the move higher for the overall market any way you look at it. Gold was up a couple bucks as the US dollar was lower. The XAU and GDX had very slight fractional gains on light volume. Mentally I'm feeling OK. So where do we go from here? I'm still convinced that we'll be moving a bit higher from here but without expanding volume any rise will be sluggish. If we get a high volume breakout I would suggest jumping aboard. But we haven't seen that yet. We do have the positive expiration bias in our favor this week if you're bullish. I suppose I'll have to start looking out to the June SPY options. Not exactly sure which way to go there yet. However with the small stocks extremely overbought and RUT lagging the puts could be the way to go. But as always, waiting for a decent technical signal will be key. Europe and Asia were both higher in last nights trade. We'll keep an eye on things tonight but it appears that there will not be any trades for me this week.