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Wednesday, June 17, 2020

A mixed bag today as the Dow fell 170 points on lighter volume.  The advance/declines were 2 to 1 negative.  The summation index is trending sideways.  The overall market fared better than the Dow with the NASDAQ showing a small gain.  There was sideways movement for most of the day with a drop in the final hour.  The short term technical indicators for the S&P remain mid-range.  Chairman Powell finished his testimony before Congress and there were no surprises.  We've got two days left in option expiration week.  We had a severe drop and now a bounce that has stalled.  So we'll see where we go from here.  GE was off 1/4 on lighter volume.  Gold futures finished little changed after selling off overnight.  The US dollar was slightly higher.  The XAU and GDX had small fractional gains on very light volume.  There still remains no interest in the gold shares.  I still have my GDX June calls since they are practically worthless anyway.  This trade is destined to be another loser.  Mentally I'm feeling OK.  The VIX remains at its 50 day moving average.  The short term technical indicators here are at mid-range.  It looks like they want to turn back up here which would lead to some fireworks ahead of Fridays option expiration.  We'll simply have to see how things play out.  No SPY trades for me right now.  In fact after I close out the current GDX call trade, I'll most likely be heading to the sidelines as summer begins.  I will be looking for the next GDX trade though as the Bollinger bands are starting to contract there.  That implies a big move coming one way or the other soon.  For now I'll just wait and see how the rest of this week goes and take it from there.  Asia was mixed and Europe higher overnight.  We'll keep an eye on tonights headlines.

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