Thursday, November 05, 2015
A little more selling today as the Dow fell 4 points on heavy volume. The advance/declines were barely negative. Just waiting on tomorrows employment data. I don't know how that will play out but I am still considering the SPY November calls on weakness. The ideal scenario would be a drop tomorrow with follow through on Monday. Monday would be the purchase time. But we all know that ideal scenarios rarely pan out. I'll continue to watch and wait. GE was up a dime and the volume was extremely heavy. The stock simply remains overbought. If we ever get some pullback, the January calls here are on my radar. Gold was off a few bucks on the futures as the selling continues. The US dollar was slightly higher before the jobs numbers. The XAU dropped 2 1/4, while GDX fell 1/2. Volume picked up to the downside. I still think that on a long term basis the gold shares are attractive at these levels. But you have to have a time horizon that will last a couple of years or more. As far as a trade here, I don't have any in mind. Mentally I'm feeling OK. So we'll see what the market reaction is tomorrow and go from there. It should be a triple digit day for the Dow one way or the other. There's still a couple of weeks to go in the November option cycle. My guess is that there will be some decent movement prior to expiration because things will really slow down going into Thanksgiving week. So there is still a chance to make some money this month. The foreign markets were mixed overnight. We'll see what tomorrow brings.