Wednesday, October 21, 2015
An up and down session that ended with a decline as the Dow fell 48 points on good volume. The advance/declines were over 2 to 1 negative. Perhaps we will relieve the overbought technical condition in the coming days. The summation index is still moving up. The overall market was weaker than the Dow with the small stocks once again leading the way lower. No hurry to trade here as I continue to favor getting some SPY November calls if we get oversold. GE was up a few cents as the volume remains above average. I'll consider some calls here if we get back to $28. Gold was off over $10 on the futures as the US dollar was a bit higher. The XAU fell 2 points, while GDX shed 1/2. Volume was lighter. I do not have any trades in mind here at the moment. Mentally I'm feeling OK. The plan for now is to let this week pass and we'll go from there. We've got the Fed next week and that usually provides some excitement. Earnings are the driver for now. Although the Dow has broken through the down trend line on the daily charts, the other major indices have not. This is a line that has been in effect since the summer. It usually isn't bullish to have the Dow leading the way. It's better to have the broader averages in front from a bullish point of view. So we'll see where this leads us. The overseas markets were mixed overnight. We'll watch for some downside follow through in tomorrows trading session.