Thursday, September 24, 2015
Another down session as the Dow fell 78 points on good volume. The advance/declines were negative. We did make somewhat of a comeback because early on the market was off over 200 points. Short term oversold for the major stock indices but in a down market we can stay that way. I did purchase some SPY October calls in the early morning but could have gotten a better entry if I had waited. They are showing a slight profit at the moment. Yellens speech is tonight and that should be a market mover. The daily candlestick chart for the S&P 500 has a bullish look right now. There is a possible morning star or a hammer after todays price action. But that could all change with a negative session tomorrow. GE was off 1/4 and the volume was heavy. Not such a bullish candlestick chart here. Gold found some buyers as the futures rose over $20. The US dollar was lower today but finished well off of its lows. The gold shares perked up. The XAU gained 3 1/4, while GDX added almost a point. Volume was very good. Not sure what the reason was for the buying. It will take more than one day though to turn things around here. Mentally I'm feeling OK. We'll get the final GDP revision for the 2nd quarter tomorrow. I don't think it will be a market mover unless it's a big surprise. The reaction to what Yellens says or doesn't say tonight should be the main event. I'm in the next trade with the SPY after the recent ABX debacle. I should be exiting this trade within a week unless developments prove otherwise. If the market is up tomorrow, then this trade has the potential to be a winner. Down and the opposite is true. As long as the premiums don't erode in a hurry, time will be on my side for a while. Perhaps gold knows something we don't or maybe today was just a one day wonder. Time will tell on that. We'll get the post Yellen press conference wrap up and see how the overseas markets react to that.