Wednesday, September 02, 2015
And back to the upside today as the roller coaster of volatility remains. The Dow climbed 293 points on good volume. The advance/declines were about 3 to 1 positive. We will ask again if the decline is over but the answer remains the same. Nobody really knows. Whipsaw action and that makes for difficult trading. I'll remain patient here and wait for a decent signal. That is the game plan. Neither overbought or oversold right now. The Fed minutes were a non event. GE rallied strong today and gained 2/3 on good volume. No rush for the November calls for now. Notice though that GE did not have the bearish moving average crossover that the indices did. Not yet at least. Gold was off $5 on the futures as the US dollar was higher today. The XAU and GDX had slight fractional losses on light volume. Perhaps the employment report will get gold going. Mentally I'm feeling OK. So here we are getting whipped back and forth with multi-hundred point moves in the Dow. The ideal scenario would be a retest of the lows but it is also possible that we rally from here back to the moving averages. One of the indicators that I look at is in extremely bullish territory with regards to option sentiment. Too many puts have been bought. The market always tried to disappoint the most players. Or so it seems that way. I'll wait for either an overbought or oversold signal in the September cycle and trade from there. There is no shame in waiting on the sidelines for things to calm down. Gold going nowhere as is ABX. A slow death from here on out for the ABX October call trade. China is closed for a couple days so we'll see what the rest of the world does in its absence.