Friday, July 28, 2017
A quiet close to the week as the Dow added 33 points on light volume. The advance/declines were slightly positive. The summation index is now trending sideways. The overall market was weaker than the Dow once again. GDP came in about as expected, which led to a bit of selling early but did not amount to much. The technical indicators for the major stock averages remain overbought. The VIX did have a spike up this week but now looks like it is going to roll over. Earnings remain the focus and they are coming in good for the most part. The TRAN has rolled over and that is something to watch. However most indices remain in striking distance to new all time highs and there is no resistance. GE lost 1/4 on light volume and continues to disappoint. What used to be a market bellwether is now an also ran. Gold rose another $8 on the futures as the US dollar was lower. The XAU gained 1 1/2, while GDX rose 1/3. Volume was lighter. It looks like the longer term gold share call trade has been missed. The opportunity for ABX came on the drop Monday but my order was already canceled and I wanted to wait for the earnings as well. I might place an open order before I leave on vacation but this would be chasing what has already happened. There is plenty of room to move up on the weekly chart though. But the most opportune time for that trade has been missed. Mentally I'm feeling OK. End of the month coming on Monday and we'll probably see some squaring of positions. We've got a summer rally in progress with no sign of the doldrums. We'll see how this plays out going forward. My mind is in vacation mode for now. Europe and Asia were lower overnight. It's Friday afternoon in late July. Time for a rest.