Wednesday, August 10, 2016
Lower today as the Dow fell 37 points on light volume. The advance/declines were negative. The summation index is heading sideways. We're still below the zero line on the McClellan oscillator. The short term technical indicators have rolled over for the S&P 500. But there is no sense of urgency to what we have going on here. You could have tried to get some SPY August puts in the past couple of days but the needed volatility just isn't there yet. The action is more of a meandering stream to nowhere. It has been a slight drift higher but for most part nothing much. Better to be writing as opposed to buying. GE was off a few cents and the volume was extremely light. Gold was up $5 on the futures as the US dollar was lower again. The XAU added 1 2/3, while GDX was up 1/2. Volume remains light. Mentally I'm feeling OK. It appears the prudent course of action here will be inaction. Time is running out for the August option cycle. Even with the extra week for August there has been only one decent set up so far that I missed. I would certainly like to try another trade here soon but if things don't line up properly you cannot force it. After the volatile Augusts that we've had in recent years, so far this one has been rather tame. It's possible that could change but I don't see it anytime soon. I could be wrong. But it seems like the market is on vacation. Asia and Europe were both generally slightly lower. We'll see what tomorrow brings.