Wednesday, March 28, 2018
The market just hung around today despite moving up and down. The Dow lost 9 points on good volume. The advance/declines were slightly positive. The summation index is still heading lower. The overall market was weaker than the Dow. The small stocks are doing poorly and the market won't be going up if that remains the case. My SPY April calls are still showing major losses. I'm giving this trade until the middle of next week depending on what we do from here. Probably should have dropped out yesterday. The S&P 500 is still trying to hang on at the 200 day moving average. GE was up almost 1/4 on heavy volume. Rumors still flying around on who is accumulating this stock. Gold lost almost $20 on the futures as the US dollar rallied. The XAU fell 1 1/2, while GDX dropped 1/3. Volume remains good to the downside. Perhaps my idea for the GDX September calls is the wrong one. The fundamentals for gold do remain negative in my mind. So maybe I'll just forget about this trade. Mentally I'm feeling OK. The market is moving on headlines. Today Washington had negative things to say about AMZN and it lost 5%, leading the overall market lower. There is some economic data coming out tomorrow but it's the day before a long weekend. Like I said yesterday I don't see a lot of buying coming in on the last day of the month but I could be wrong. We are at a very important juncture for the market because if we don't hold things in right here it will get ugly fast. Maybe we'll see a short covering rally tomorrow before the weekend. But that is simply a hope at this point. The short term technical indicators for the S&P are oversold. However they show no signs of wanting to move up. Perhaps we can just hang around tomorrow as well and wait for the beginning of April next week. I will say the longer that we don't simply drop here the more positive that I'll feel. When markets go down they just move lower. Hanging around here may produce the double bottom that is potentially out there for most of the major stock indices. Asia was lower and Europe generally higher in overnight trading action. We'll close out the shortened trading week tomorrow.
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