Tuesday, September 22, 2015
To the downside as the Dow fell 179 points on good volume. The advance/declines were 4 to 1 negative. No real news to speak of and we did come off of the lows for the session. I could make a case for buying weakness tomorrow as we are going to be short term oversold. However the option premiums are still high and I am probably not nimble enough at the moment to make this trade work. But who knows? GE was actually up a couple cents on good volume. GE opened lower and came all the way back. The action in GE leads me to believe that the stock market isn't in trouble here. I also still like the November calls here if we ever get to oversold. Gold was off $8 on the futures as the rally in the US dollar continues. The XAU fell 2 1/4 and GDX shed 2/3. Volume was good to the downside and is another negative here. No trade in mind at the moment. Mentally I'm feeling OK. The question for now seems to be if we are going to retest the lows set in August. It is a valid question. The summation index is still heading higher for now. If that were to turn around we would probably see a lot more weakness in the stock indices. But it hasn't happened yet. Another area to keep an eye on is the 500 level in the summation index. If we turn back down there, things could get ugly again. However the reverse is also true. If we make it through there you can look for much higher prices in the weeks to come. So we are in an indecision pattern right now really. Gold remains uninteresting and in the background. The continued weakness in the gold shares is not a positive sign. We'll keep an eye on the overnight developments and see what tomorrow brings.