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Thursday, January 24, 2019

More back and forth today as the Dow fell 22 points on about average volume.  The advance/declines were 2 to 1 positive.  The summation index is moving up.  The overall market was stronger than the Dow.  We're still short term overbought for the S&P 500.  Nothing has really changed.  I'm waiting for 270 on the SPY in order to try the puts there.  Perhaps we can get there at some point next week.  We're still waiting for some kind of settlement to reopen the US government and the market reaction to that.  Should be positive and we'll go from there.  No economic reports until the government gets back to work.  GE gained a nickel on good volume.  Gold was flat but the US dollar was higher.  The XAU was off a touch and GDX was flat.  Volume was light.  No interest in gold here one way or the other.  The gold shares remain oversold so I'll continue to hold on to the GDX February call trade.  Mentally I'm feeling OK.  A short holiday week and we'll finish it out tomorrow.  Still a lot of earnings to come out.  We're still at the mercy of the latest China/US trade talk story.  Plus the US government shutdown soap opera.  I still favor some downside at resistance because there is a lot of it right above where we are.  Patient for now.  Gold is holding the 1280 level but a break there would be negative as there is no support until around 1260.  We'll see how it goes.  Asia was higher as was Europe with the exception of the FTSE.  We'll close out the week tomorrow.

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