Tuesday, January 05, 2016
A mixed bag today as the Dow gained 9 points on average volume. The advance/declines were positive. The small stocks were weaker on the day, not a good sign. It was pretty much a meandering session. At least we didn't have downside follow through to yesterdays debacle. Getting short term oversold on the technical indicators but a case can be made for further downside. My SPY January calls remain on life support, with the only question of whether they will expire worthless or not. GE was pretty much flat at the close. The indicators have rolled over here as well with room to go lower. Gold was up a couple bucks on the futures. The US dollar had a strong day to the up[side. the XAU and GDX had slight fractional moves lower on light volume. Mentally I'm feeling a bit tired, did not sleep well. Santa Claus failed to appear this year for the stock market. That is not a good sign in my book. It never is when the usual bullish seasonal patterns don't show up. So I will have to keep that in mind going forward with the trades. The summation index did turn back down yesterday but not by much. I think that the price action tomorrow will be important for the short term picture. If we can hold up then perhaps we'll get some traction higher going forward. If not, the bears will be in control. So stay tuned. The foreign markets were mixed but they too did not collapse after Mondays down draft. Needless to say I don't have a firm grasp of what exactly is taking place here. We'll get the Fed minutes tomorrow and that has the potential to be a market mover. Then Fridays employment report. So there will be reasons for the market to move. As usual the direction is the question. Unfortunately I don't have a good answer at the moment.