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Wednesday, May 10, 2017

More of the same here for the market as the Dow fell 32 points on good volume.  The advance/declines were almost 2 to 1 positive.  The overall market was stronger than the Dow.  The summation index is trending sideways.  Basically moving sideways in the S&P 500 for 2 1/2 weeks.  Indicators remain overbought and staying that way.  I did place an overnight order for some SPY May calls but it wasn't filled.  I'm leaving the order in overnight.  Sooner or later we'll get some kind of breakout.  The question remains, in which direction.  I'm still looking for an upside resolution.  GE was off 1/4 on what passes now for average volume here.  We're still oversold here.  Gold was up a couple bucks on the futures, while the US dollar was little changed.  The XAU rose 1 1/3 and GDX gained 3/8.  Volume was light.  Mentally I'm feeling OK.  Running out of time in the May option cycle.  The timing of any trade from here on out would have to be impeccable.  It can be done but you've got to have the market cooperate as well.  If we get some pullback, I'd be willing to go the other way with the calls.  If we start to rally, there is not overhead resistance so purchasing some puts would be even riskier that usual.  Not to mention the running out of time factor.  Volatility seems to have disappeared and the lack of price movement is frustrating.  So I do think that the prudent course of action remains to wait for a decent set up and go from there if we get one.  If we don't, I'll simply have to wait for the June option cycle.  Europe and Asia were generally higher overnight.  We'll keep an eye on tonights developments.

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