Thursday, July 27, 2017
Volatility returned to day as the Dow gained 85 points today on heavy volume. The advance/declines were negative. The summation index is still moving up. The overall market was much weaker than the Dow, especially the small stocks. Some indices had one day reversals to the downside. The TRAN fell almost 300 points. I'm not exactly sure what is going on here but one day doesn't make a trend. The short term technical indicators for the majority of the major indices remain overbought. We'll have to see how the market behaves tomorrow. GE gained almost 1/4 on good volume. Is this the bottom for GE? Gold rose $9 on the futures despite a decent gain in the US dollar. The XAU dropped two points, while GDX shed 1/4. Volume was average. If the gold shares turn back down here, there's a possibility that I will be able to put on the longer term gold share call trade. We'll see. Mentally I'm feeling OK. GDP out tomorrow and that should have an effect on the US dollar, which in turn should move the gold market. And the overall market for that matter. Today was interesting because the volatility came out of nowhere. As long as we stay overbought, there is always that possibility. Earnings have been pretty good so far and if that continues I don't see any major drop for stocks. We are in a seasonally weak period for equities though. So we'll see how it goes. Asia was higher and Europe mixed overnight. We'll close out the week tomorrow.