Monday, April 03, 2017
We begin the week and the month of April a bit lower as the Dow fell 13 points on average volume. the advance/declines were negative. It could have been worse as we were off almost 150 during the session. This Monday looks a lot like last Monday. The summation index is still moving up. No clear signal here but I did place an open order for the SPY April calls and I'm leaving it in overnight. I would like to be long before the employment report due Friday. However there is a chance that today was the time to purchase the calls. The ideal scenario from here in my mind would be a drift lower all week into the close on Thursday. The market rarely cooperates. GE was up a few cents on average volume. Gold rose a few bucks on the futures and the US dollar was a bit higher as well. The XAU rose 1 1/2, while GDX gained 1/3. Volume was nothing special. Mentally I'm feeling OK. Somewhat of a change from the recent behavior as the Dow had better relative performance. The small stocks under performed today and that is something to keep an eye on. I'm leaving in the open option order for the calls overnight but if we open down hard again, I'll cancel it. As I said before, drifting lower for the rest of this week would be the preferred market motion to set up this trade. So if we can stay in a holding pattern until Friday, there might be a chance for this trade. If not we'll just have to remain patient and see how things play out. That's all we can do for now. Asia was up and Europe down in last nights trade. We keep an eye on things overnight.
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