Pageviews past week

Tuesday, October 07, 2014

So here we are.  The Dow fell 272 points on good volume.  The advance/declines were 3 to 1 negative.  The summation index continues lower and has gone through the zero line.  This is what we have been waiting for.  No reason for the decline as the technicals have taken over.  How low will we go?  Who knows?  I'd guess to at least 1900 on the S&P 500.  The recent positive candlestick pattern on the S&P has been negated.  We don't get in this zone very often but it does get interesting when we do.  So keep a very close eye on things this week.  There will be opportunity because next year should be pretty good for the stock indices.  What I'm saying is that if you are looking to purchase stocks with a longer term horizon, the next couple of weeks will be when to really take a look.  GE fell 3/8 on average volume.  I'm looking at the March calls here but not to purchase just yet.  Gold was up $5 on the futures as the $1200 level tries to be the stopping point.  The gold shares did not follow as the XAU lost 2 7/8.  The US dollar was off just a bit.  ABX, GG and NEM were all down around 60 cents.  Volume was good.  The gold shares are so hammered that it is really hard to believe.  I'd like to try the calls again but it seems like that strategy has never worked for me this year.  It is probably best just to wait for some kind of positive divergence with the technicals and then maybe give them another try.  Mentally I'm feeling OK.  Things should continue lower here for the major stock indices.  My October OEX puts remain in the black.  When to sell them is the next challenge.  The 200 day moving average comes in at around 845.  Unless we get a complete turnaround tomorrow, we're heading lower and probably in a hurry.  Gold is starting to stop going down but the gold shares remain weak.  That could be a factor of the overall stock market decline and probably is.  I'll have to fight myself not to try and trade them with calls once again.  But you never know.  We'll see if the foreign markets continue their decline overnight.  Tomorrow should be an interesting session. 

No comments: