Tuesday, November 17, 2015
Almost a one day reversal to the downside but not quite. The Dow added 6 points on heavy volume. The advance/declines were negative. The S&P 500 was lower. The summation index continues lower. We were up over 100 points today during the session. I did dump the SPY November calls this morning for a loss of 70%. The timing on that trade was off from the start. I'm still holding the SPY December call trade. Perhaps we'll form a bottom in the stock indices this week. However with the summation index still moving lower, anything is possible. I do remain bullish for the next few weeks though, unless we take out the recent lows. GE was off 4 cents and the volume was the heaviest yet. And I mean extremely, out of this world volume. I have no idea what is happening here with GE because I've never seen any volume like this. I still want the January calls. Volume means interest and the price has stayed up. Gold broke the key level of $1180 today as the futures were off $15. The US dollar was higher. The XAU lost 2 1/2 and GDX shed 2/3. Volume was good. It looks like we're going lower now for gold. The next stop is probably $1000. Mentally I'm feeling OK. Another losing trade in the books with the closing of the SPY November call position. I should have managed it better but at least I waited for the bounce to get out. Still, it was a loser and doesn't matter now. Tomorrow we should get some movement on the release of the Fed minutes. I also expect that the major players will be taking care of business before the Thanksgiving week. The technical indicators are still in the oversold zone. We'll see if things hold up here or whether this was a pause in the downtrend and an opportunity to get short. We'll know the answers soon enough. The foreign stock markets rallied overnight to follow yesterdays US action. We'll watch how it goes tonight.