Wednesday, April 11, 2018
Back to the downside today as the Dow fell 218 points on light volume. The advance/declines were barely positive. The summation index is trying to move higher but having a tough time. The overall market didn't drop as much as the Dow. I'm not exactly sure exactly where we're going from here but I would not be surprised if we get the common April drift. That would be simply sideways price action that we've seen for the past couple of weeks continuing. We've been in a range and even though it has been volatile there hasn't been any trend one way or the other. All the talk of a double bottom hasn't actually produced one. We need to get above the declining tops line for a legitimate rally or below the recent support for a decent drop. GE was back down a few cents and we're still holding the $13 level. Volume was light. Gold found a bid and the futures gained $10. The US dollar finished little changed. The XAU added 1 3/4, while GDX gained 1/2. Volume was heavy. Perhaps the gold shares are putting in a double bottom. Perhaps my longer term gold share call idea was the correct one. Mentally I'm feeling OK. My SPY April calls are still big losers and I'll need to take the loss before the close on Friday at the rate things are going. It is a frustrating trading environment at the moment, with both bull and bear sides treading water. I'm not sure where this will all lead to be on a technical basis the indicators remain mid-range. So we are still at the point where it could go either way. Or do what it has been doing and going nowhere. It appears that we are at the mercy of the next headline or political statement. That is the game now and we'll have to adjust accordingly. It isn't the greatest trading atmosphere but it is what we've got. Europe was lower and Asia mostly that way as well. We'll see how it goes tomorrow.
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