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Tuesday, October 21, 2014

It is hard to believe that a week ago the market looked like it was at the end of the world.  Today the Dow soared 215 points on heavy volume.  The advance/declines were about 5 to 1 positive.  The summation index is moving higher.  We are right at the down trend line that began a month ago in the S&P 500.  I did place an order for some November OEX puts but it wasn't filled.  It has been a straight line up for the major stock indices since the lows of last week.  The TRAN has already moved above its declining tops line.  So is the idea of getting some index puts here the wrong one?  Could be.  I'll think about it again tonight but perhaps strength tomorrow will be the opportune time for purchase.  GE was up 3/8 and the volume was average.  Right back to the 50 and 200 day moving averages here.  The down trend line here has been broken as well.  Gold rose $7 on the futures and the US dollar was higher today as well.  Not sure what to make of that.  The XAU was only up 1/4.  ABX, GG and NEM all had slight fractional moves one way or the other on average volume.  Once again gold is moving higher without the gold shares and that isn't bullish.  Mentally I'm feeling a bit tired.  It has been an incredible turn in price for the stock indexes.  The summation index has turned around as well.  Longer term it appears that a decent bottom has been put in.  Shorter term is a bit tougher.  We'll be short term overbought with any positive action tomorrow.  I'm leaning towards trying the November OEX puts for a short term trade.  I'll consider this idea once again tonight.  The foreign markets seemed to have turned here as well.  Perhaps waiting for a pullback to get long is the better course of action here.  We'll see.  Gold and silver have stopped going down but it certainly isn't the kind of price action that gets anybodies attention.  Staying on the sidelines there for now.  We'll watch what happens today after the bell, check the overseas action tonight and get ready for tomorrow.

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