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Friday, May 22, 2020

It was pretty much a lackluster session to end the week as the Dow fell about 9 points on what now is considered light volume.  The advance/declines were positive.  The summation index is moving up.  The overall market was stronger than the Dow.  We sold off early and then made our way back.  The day turned out to be what we expected.  A pre-holiday Friday that was slow with low volatility.  It was a day to be forgotten as we'll set our sights on Tuesdays open.  GE lost few cents and the volume was light.  Gold was up just over $10 on the futures and the US dollar was higher as well.  The XAU and GDX had slight fractional losses on very light volume.  My open order for the GDX June calls remains.  Mentally I'm feeling OK.  The VIX was lower today and is getting ever closer to its lower Bollinger band.  The ideal scenario here is a break of that band and a touch of its 200 day moving average at 24.  That would set up a sell signal for me and the purchase of some SPY June puts.  That could happen sometime next week if the market cooperates which it rarely does.  If that were to occur with the S&P 500 hitting the 3000 level, then all systems would be on go for the purchase of the puts.  The S&P remains short term overbought.  The country is slowly opening back up but the pandemic virus still looms and is not going anywhere anytime soon.  That is the way the overall environment is shaping up.  We're also getting some fresh rumblings of the US/China situation starting to deteriorate.  So there is plenty out there for the market to digest despite the easy money from the Fed.  I'll comb the charts over the long weekend and try and come up with some ideas for next week.  Asia was lower and Europe mixed to close out the week.  It's Friday afternoon and time for a break.

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