Thursday, March 30, 2017
A drift higher today as the Dow gained 69 points on light volume. The advance/declines were positive. The summation index is moving higher. It appears that I did leave some money on the table by closing out the SPY call trade yesterday but I did not want to take the added risk. There's still room to move up on the short term technical indicators for the S&P 500 but the volume here on the rise has been light. The small stocks didn't outperform today for a change. I'm still a believer of buying on a pullback for the April option cycle, if we get one. GE gained 20 cents and the volume was better than what we've seen lately. We're still below the 200 day moving average here. Gold dropped $10 on the futures as the US dollar had a good day. The XAU and GDX had fractional losses on very light volume. Mentally I'm feeling OK. We'll finish out the month tomorrow. If the S&P continues to rise, we'll get a bullish engulfing pattern on the weekly candlestick chart. This would be a positive for the bulls. It would also make buying any weakness next week more likely to work. But it hasn't happened yet. As it stands this week was a good one if you are positive on stocks. Perhaps we can make a run at new all time highs next week. That's just a guess as we will have to wait and see what the market has to say. For now, waiting for the next signal is the plan. There's still plenty of time in the April option cycle. Asia was lower and Europe generally higher again overnight. We'll close out the week and month tomorrow.
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