Monday, August 22, 2016
Back and for the was the theme of the day as the Dow fell 23 points on very light volume. The advance/declines were barely positive. The summation index is still grinding lower. We did see volatility pick up a little today but with the light volume, whipsaws are more likely. It is still summer doldrums activity and we may have to wait for after Labor Day to get things back to normal. More Fed watching than usual with Yellen blabbing on Friday. There is nothing else for the markets to go on for now. GE was up a few cents on light volume. Gold was down a few bucks on the futures and the US dollar was little changed. The XAU fell 2 points, while GDX lost 1/2. Volume was light. The talk of the Fed rising interest rates is putting a lid on gold for now. Mentally I'm feeling OK. The small stocks are still relatively stronger here so I expect a positive resolution to the recent market indecision. I'd like to see a move up to 2200 on the S&P 500 and then I would seriously consider the SPY September puts. At the moment we remain short term overbought for the S&P 500. For now I'll stay on the sidelines and wait for a signal one way or the other. Europe was generally lower and Asia was mixed overnight. We'll keep an eye on the action or lack of, overnight.