Wednesday, September 09, 2015
Markets around the world rallied but the US did not follow suit. The Dow fell 239 points on good volume. The advance/declines were almost 3 to 1 negative. It is a difficult trading environment. It pays to be nimble and take whatever profits that you can. You won't get the exact highs or lows. I don't have a good read on what's happening, so I'm on the sidelines. Today was a one day reversal to the downside, opening higher and closing lower. The path of least resistance is now down. GE was off 3/8 and volume was average. Getting closer to the 50 day moving average crossover to the 200 day. If that happens it may be a clue as to the next extended market direction. Or not. Gold fell today as the US dollar was higher. The precious metal futures dropped $15. The XAU lost 1 1/4, while GDX fell 3/8. Volume remains light here. Mentally I'm feeling OK. Rallies appear out of nowhere in down markets. That seems to be what we witnessed yesterday. Now we have rolled over again. We also saw a compressed 1, 2, 3 move higher from the lows on Friday. These are characteristics of a bearish phase. Of course I have been too slow to see this ahead of time. My take on the market here is a confused one and not a lot of conviction either way. Hopefully I'll get a handle on things quickly. My ABX October call trade is dead. Once again we'll watch the overnight action but I have no real trade ideas at the moment.