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Wednesday, March 13, 2019

The Dow carries on as my theory of a drop today did not materialize.  The Dow gained 148 points on good volume.  The advance/declines were 2 to 1 positive.  The summation index is still trying to turn around back to the upside.  The overall market was just about in line with the Dow.  The S&P 500 made it up to 2820 and then backed off.  There is still room on the short term technical indicators to go higher.  Brexit seems to be a non event for the US market.  GE was up 1/4 on average volume.  Gold was up a dozen of the April futures as the US dollar had a good drop.  It appears that the dollar breakout a few days ago was a false one as we have now fallen back below resistance.  The XAU and GDX only had slight fractional gains on light volume though.  Mentally I'm feeling OK.  So far it looks like the typical options expiration week run up as bounce off of the recent lows continues.  There's no reason to believe that we can't just go higher into the close on Friday.  That would not be a surprise.  For me now it's a matter of being patient for the next likely set up.  I'm not exactly sure what that will be but if the seasonal weakness for gold finally arrive, I'll be looking for the GDX April calls.  If not, I'll have to try the breakout above the 2820 on the S&P if and when that happens.  So I'll watch and wait.  Asia was lower and Europe higher in last nights trade.  We'll keep an eye on the overnight headlines.

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