Monday, May 08, 2017
Another day of hanging around as the Dow rose 5 points on average volume. The advance/declines were negative. The summation index is moving sideways. The market tried to sell off today but could not. The RUT is under performing here and that is a concern. The TRAN lagged as well. However I would still like to try the SPY May calls if we get some kind of pullback this week. The short term technical indicators for the major stock averages remain overbought. I can only watch and wait at this point with only 9 days left in the May option cycle. I do still favor an upside breakout from these levels. GE was off 1/8 or so on light volume. Gold finished flat on the session and well off of its highs. The US dollar was higher. The XAU and GDX barely moved and the volume was extremely light. Obviously no interest here. Mentally I'm feeling OK. I am going to try and not press things here as the May option cycle is running out of time. There is however, enough time for a decent signal to materialize. We got the French election out of the way and there is some economic data due out later this week on inflation plus retail sales. So we'll see where things go from here. Volatility is extremely low and that won't last forever. Asia was higher and Europe lower overnight. We'll see how it goes tomorrow.
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