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Thursday, September 18, 2014

Expiration levitation continues as the Dow rose 109 points on average volume.  The advance/declines were positive.  I did not think that we would break out to new highs but here we are.  The small stocks continue to lag and that is not a positive.  But you cannot argue with price.  I got rid of my remaining September OEX puts for practically a 100% loss.  That trade was a catastrophe.  I am implementing new rules and will try my best to have the discipline necessary for success.  The short term technicals for the market have turned around and are heading higher.  But I continue to see weak breadth on this advance.  GE was up over 1/8 and the volume was good.  My September GE calls will expire worthless.  Thankfully there wasn't much money in that trade.  Not near a recovery high here yet.  I do think that the stronger dollar will be impacting the big multi-national earnings in this quarter.  Time will tell on that.  Gold lost ten bucks on the futures but that really occurred late yesterday.  The US dollar had a weak session and the daily candlestick chart now looks bearish.  The XAU fell 1 1/4.  ABX, GG and NEM were all lower on average volume.  These stocks are blown out to the downside and the technicals as well.  I did place an open order for the January ABX calls in anticipation of lower prices as gold drifts towards $1200.  I'll cancel it over the weekend if it isn't filled tomorrow.  Mentally I'm feeling tired.  Having some minor issues outside of the markets to deal with.  We'll probably see some more upside tomorrow with the offering of Alibaba providing the excitement.  The summation index has yet to turn around and I still feel that bears watching.  The RUT is not near recovery highs either.  The broader NYA is lagging here as well.  It usually isn't a good sign when the narrow Dow is leading the way.  Gold remains the same.  Oversold and staying there.  Ditto for the gold shares.  But I'm willing to try them again.  Sometimes it is best to buy what nobody else wants.  We'll see.  Should be an interesting Friday with the Scottish voting results, Alibaba and option expiration.  Stay tuned.

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