Wednesday, April 10, 2019
The Dow managed a gain of 6 points on light volume. The advance/declines were almost 3 to 1 positive. The summation index is now in a sideways trend. The advance/declines reversed themselves from yesterday. We are still short term overbought for the S&P 500. I wanted to see weakness going into the close tomorrow but today negated that. I am still considering the SPY April calls though because we've seen the same picture before over and over again approaching option expiration. The positive bias takes over and the market simply keeps going up despite the overbought technical conditions. The overall market was much stronger than the Dow again and the small stocks are leading the way. I'll be looking for some weakness tomorrow to purchase the SPY calls. GE was off a few cents on what now passes for average volume. Gold was up a couple of bucks on the futures as the US dollar was a bit lower. The XAU fell a point, while GDX lost about 1/4. Volume was light. Mentally I'm feeling OK. Light volume seems to be the tone of the market these days. It has the potential to be dangerous in both directions. Six days to go in the April option cycle as next week Friday is a holiday. Bank earnings due this Friday and I'd like to be positioned ahead of that. I'll be the first to admit that it's risky to try something here but I probably will on market weakness for the SPY calls. Like I already said, we've seen this picture some many times before that it's about time to cash in on it. So tomorrow has the potential to be a trading day. Asia was slightly lower and Europe slightly higher in last nights trade. We'll see what tomorrow brings.
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