Thursday, August 04, 2016
Another lackluster session as the Dow lost a couple points on light volume. The advance/declines were positive. The summation index continues lower. I placed another order for the SPY August calls but it wasn't filled. Perhaps if we get early weakness tomorrow I'll try again. I do think that we're heading higher tomorrow. The summer doldrums are in full effect and that makes for tougher than usual speculation. Perhaps simply taking off the rest of the summer is the answer. We should get some movement out of the jobs number but will it be enough to make attempting a trade worthwhile? GE was up a few cents and the volume was light. Gold was up a couple bucks on the futures and the US dollar was a bit higher as well. If gold can get above $1375, it has room to run. The XAU and GDX had fractional gains on the day. Volume was light. Mentally I'm feeling OK. It seems like the market is just sleepwalking this summer as we've been range bound for weeks. August is generally a poor month for stocks so we will have to see where we go from here. I'm expecting some upside tomorrow but after that, who knows? Lack of volume and lack of volatility is not conducive to good trading opportunities. I've been quite patient for a while and that has not been a bad thing. I'll continue to wait for a decent technical set up before pulling the next trade. I do think that we have one here for the very short term but my price objective for taking the risk was not met. Europe and Asia were higher overnight but the US did not follow through. We'll watch the markets reaction to the employment numbers tomorrow.