Wednesday, April 03, 2019
We bounced around today but the Dow did finish with a gain of 39 points on average volume. The advance/declines were positive. The summation index is moving up. We were higher from the start but then about halfway through the session sellers emerged to take us into negative territory. Buyers returned and we finished positive on the day. The S&P 500 is still short term overbought. Waiting on Fridays jobs report for now. No trades in mind at the moment but I'm still leaning bullish and am hoping for some type of pullback. There's still plenty of time in the April option cycle to get something done. GE was off over 1/8 and the volume isn't what it used to be here. Gold was a bit lower as was the US dollar. The XAU and GDX barely moved on very light volume again. There's all of a sudden no interest in the gold shares and I can't see how that's positive. My guess is things will get moving here on the employment report be it weak or strong. Mentally I'm feeling OK. but have a slight back ache. It isn't affecting my concentration at the moment. I always think that the day before the jobs report will be running in place. That only happens about half the time. During up trends the market can stay overbought for quite some time. That is what I believe we are experiencing now. There is a possible negative divergence on the S&P 500 daily RSI indicator but a solid up day will negate that. There is no overhead resistance for the S&P until we reach the former all time highs. That's a positive factor that can't be ignored. So I'll be patient here for now. I do still like the gold shares but the break of the up trend line is a concern and a reason to be cautious on the long side right now. Short term oversold though. Never easy in the game. Europe and Asia were both higher overnight as money continues its worldwide flow into stocks. We'll see what tomorrow brings.
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