Monday, April 09, 2018
Huge gains early but the market could not hold on. The Dow gained 46 points today after being up over 400. The advance/declines were slightly negative and the volume was light. The summation index is heading sideways. The overall market was stronger than the Dow but the price action was definitely negative. Not holding on to the strong positive price action is not a good sign. It will be interesting to see where we go tomorrow. The FB CEO will speak to Congress and it could be trouble for the market. So could Trumps lawyers office just being raided by the FBI. That seems to be what todays price action is implying. So we'll see. GE was off 1/4 on average volume. Trying to hold onto the $13 level here. Gold was slightly higher as the US dollar was slightly lower. The XAU and GDX had slight fractional losses on light volume. Trading range here for now. Mentally I'm feeling OK. My SPY April calls are big losers. At this point I'm waiting and mostly hoping for a big upside day to sell at a loss. Perhaps today was it because it looks like the market is about to crack. Not a lot of economic data or earnings due out so it looks like we'll simply trade off of the headlines this week. And that could be treacherous either way. It has the feel of a skittish market about to fall off of a cliff. If rallies cannot be sustained for more than a couple of days, it's trouble. Today the rally could not even hold up for an entire session. So I will be watching tomorrows price action with great concern. Europe and Asia were higher overnight. Let's see where things go on Tuesday.
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