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Monday, June 29, 2020

A positive session to begin the holiday shortened week as the Dow gained 580 points on lighter volume.  The advance/declines were 3 to 1 positive.  The summation index is still moving down.  The Dow was stronger than the overall market.  The Dow had a slight sell off early but then powered higher.  It traded sideways for most of the day and had a last hour rally to finish near the highs.  No real news to speak of.  The short term technical indicators are trying to turn up.  We've got the Fed chairman speaking again tomorrow and that could be a market mover.  End of the month and quarter tomorrow as well.  Jobs report on Thursday.  So there's plenty of excuses to move the market coming this week.  Today felt kind of sluggish despite the over 500 point gain.  GE was up 1/3 and the volume was light.  Gold and the US dollar had slight gains.  The XAU added 1 7/8, while GDX was up 1/3.  Volume was pretty light.  GDX remains short term overbought.  I'm trying to wait for some type of pullback here before attempting the calls again.  Mentally I'm feeling OK.  The VIX closed below its 50 day moving average as the back and forth here remains.  Perhaps this will lead to a rally into the holiday weekend.  That's a guess as usual.  The market hasn't had any conviction one way or the other lately.  As long as the summation index is heading lower I would think that any upside would be limited.  We are still in an uncertain pandemic virus environment.  I don't have any clear signal at the moment for any SPY trades.  I'm still just on the sidelines for now and probably the rest of the week.  We'll see if the Fed talk tomorrow has any market repercussions.  Asia was lower and Europe higher overnight.  We'll keep an eye on the end of the month and quarter movements.

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