Thursday, March 19, 2015
No upside follow through as the Dow fell 117 points on light volume. The advance/declines were 2 to 1 negative. The market has been alternating between up and down for the past week and a half. If that holds true, tomorrow will be an up day. However the lack of a positive day today is a negative. On the plus side the small stocks closed higher and the overall market dropped less than the Dow. But I think that I am starting to lose a handle on what is going on at the moment. GE was off 1/3 and the volume was good. I did place an order for some GE April calls overnight but did not expect it to get filled. It did and I now own them. However the daily chart for GE doesn't look all that bullish. And unless we close higher tomorrow, the weekly chart won't look all that good either. This has the feel of a mistake. But we'll see. Gold was up $17 on the futures but that was what we gained yesterday in the aftermarket. The dollar roared back to the upside and that is not bullish for the precious metal. The XAU and GDX had slight fractional losses on lighter volume. ABX was off 8 cents on light volume. My ABX April calls are still in the black. I'll decide whether to dump them after the price action tomorrow. Mentally I'm feeling OK. I was looking for new all times highs in the major stock indices but perhaps we will continue to see sideways action. You can make a case that we have been trending sideways since last December. The summation index did turn back yesterday but todays price action will probably turn it back down again. The market is making up its mind. Gold didn't have any follow through to the upside either and remains in the background. But we did see volume yesterday and that is a plus. I wouldn't be surprised for gold to do nothing in the near term either. There remains no interest here. My ABX call trade could be a mistake as well. We'll watch the foreign markets overnight and close out the week with option expiration tomorrow.
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