Monday, October 12, 2015
A holiday mode market as the Dow gained 47 points on light volume. The advance/declines were slightly positive. The summation index continues higher. Columbus day in the US and various foreign markets were closed as well.. My SPY October puts are in the red. If we don't see some decline tomorrow, this trade will be a loser. Both short and medium term overbought on the major stock indices. Hasn't meant anything yet. GE was flat on the day and the volume was light. I'll guess I'll let the earnings on Friday pass before I decide to do anything here. Gold was up $7 on the futures and the US dollar was a bit higher as well. The gold stocks didn't follow. The XAU fell 2 points, while GDX dropped 1/2. Volume was good. That could be the end of the gold share rally for now. Just a guess as usual. Mentally I'm feeling OK. Plenty of economic data out later in the week and lots of earnings as well. So we should see some movement in stocks. It's just a matter of which direction. Expiration week usually has a positive bias but the overbought nature of things here along with the supposed A-B-C-D-E move higher led me to go the other way. Tomorrow should tell the story there. It does look like the market is going to go straight up though. The gold shares not following gold higher today is a negative. The daily candlestick charts for the gold share indices look negative now as well. No trades in mind here for now. We'll see how the rest of the world trades overnight and the markets will be back at full strength tomorrow.