Wednesday, November 04, 2015
Just a bit of weakness today as the Dow fell 50 points on good volume. The advance/declines were negative. Looking for an entry point for the SPY November calls. Perhaps if we sell off on the employment report. But as always, the market will go where it wants. I've been waiting for the technical indicators to reach oversold and that hasn't happened. No need to be in a hurry here but I'd like to try something in the November option cycle. GE was off a nickel and the volume was very heavy. The volume on GE has expanded a lot over the past month. Heavy volume with rising prices is bullish. You could say the same for the overall market as well. Gold continues to drop as the futures fell another $8. The US dollar had a strong session. Perhaps gold is letting us know that the employment report will be above consensus. Or maybe that the Fed will finally move rates a touch higher. The drop in gold could also mean nothing at all. Such is the nature of the game. The XAU fell 1 1/3, while GDX was off 1/3. Volume was nothing special. Mentally I'm feeling OK. I suppose at this point I'm ready to let the employment report pass as well before considering the next trade. I'm still bullish on the overall market but we will not stay overbought forever. Even if it seems that way at the moment. Patience isn't easy but it is far better than losing money. The foreign markets were generally higher yesterday. I would think that tomorrows trading would be light with a wait and see attitude. We'll see what happens.