Thursday, March 14, 2019
A day of running in place as the Dow rose 7 points on lighter volume. The advance/declines were slightly negative. The summation index is still trying to turn around. Sideways chop would be the best way to describe todays price action. The overall market was a bit weaker than the Dow but there wasn't any wholesale activity in either direction. Expiration is tomorrow and the volume will be heavy. We're stalling here again just below the 2820 mark for the S&P 500. The short term technical indicators have just a little more room to go on the upside to the overbought zone. I suspect that we will break through to upside in due time. GE was up 1/4 on very heavy volume. Still below the 200 day moving average here but there is room to run on the short term technicals. Gold was off $13 today as the US dollar was lower as well. The XAU fell two points, while GDX shed almost 2/3. Volume was average. Looks like a rollover to the downside here but we'll have to see if there is any follow through. I'm still interested in the April GDX calls if and when it gets oversold. Mentally I'm feeling a bit tired, did not sleep well. Still waiting to see what happens here as the indicators for some of the major averages are at the midway point and deciding which way to go. The Dow is lagging here and that probably can be attributed to BA. The small caps have followed the S&P with the exception of RUT. We'll see if that turns out to be a problem. Brexit hasn't affected the US stock market this week. I suppose I'll just let expiration Friday pass and take it from there. The April option cycle has an extra week in it so there is no hurry with the expensive premiums. No clear technical signal as well but if the S&P 500 gets through 2820 on good volume I should probably jump on board. Europe and Asia were generally higher overnight. We'll close out the week tomorrow.
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