Friday, April 17, 2015
A decidedly negative finish to the week as the Dow fell 279 points on good volume. The advance/declines were 4 to 1 negative. This should turn the summation index back down. I don't think that this is the beginning of something big to the downside but I certainly don't know. We were overbought on the major stock indices and today begins to alleviate that condition. There are rumblings about Greece again and the European markets were weak overnight. We'll have to see what happens Monday to get a better feel for what is going on. GE ended flat on the session as it was up and down on the earnings report. We never made it back to the highs of last Friday during this whole week. I'm still thinking of getting the calls again if we get back to $26.50. Until then, it's a waiting game. Gold was up $5 on the futures as the US dollar stopped going down. The XAU and GDX were flat on the session. Volume was light. The gold shares are overbought at the moment. Patience is the strategy for now. Mentally I'm feeling OK. A weak close to the week but we did finish above the lows for the day. I don't know what brought about todays activity but there were sellers around. It is now a matter of waiting for the next decent signal for the SPY. We'll roll into the May option cycle with hopefully an open mind. Not a lot of economic data out next week. It looks like the Bollinger bands are converging on the daily gold chart. This implies some type of move coming there. As always, which way is the question. The gold shares are short term overbought. The weekly charts have more room to move higher. I'll need to see things get oversold before I can feel good about putting on a trade here. But who knows? I'll be checking the charts again over the weekend and see what I can come up with. For now it's Friday afternoon and time for a break.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment