Friday, March 02, 2018
The Dow had another losing session as it shed 70 points on good volume. The advance/declines were almost 2 to 1 positive. That tells you that the overall market was stronger than the Dow and much so. The summation index is now moving sideways. I saw nothing about the employment report so I guess it's coming out next Friday. My mistake. It appears the market is wary of a trade war with the ramblings of Trump. We'll see. I'm going to be looking at getting some SPY March calls on Monday if there's any weakness. Today may have been the day to purchase them for a short term trade. But I wanted to let this day pass to reassess things over the weekend. I at least stuck to that plan. GE rose ten cents on good volume. I've left in the open order here for the March calls but again, I'll rethink this idea over the weekend as well. Gold got an $18 bump up today as the US dollar was weaker. The XAU and GDX had slight fractional losses on light volume. No love for the gold shares. Mentally I'm feeling OK. It was a nice recovery in the overall market today with the small stocks leading the way again. That tells me that perhaps the decline has run its course. The key will probably be when we get to the short term down trend line in the S&P 500 at around 2760. We've formed a wedge or triangle here and around that level will be the moment of truth. That's how I see things at the moment. Subject to change with further review over the weekend. With the small stocks showing good relative strength, that normally means that they are the leaders one way or the other. But again I'm going to have to take a step back and look things over. I'll be checking the charts in the next two days as usual to try and come up with a plan for next week. Two weeks to go in the March option cycle, so there's time to get some kind of trade going. Europe and Asia closed lower to finish out the week. For now it's Friday afternoon and time for a break.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment