Wednesday, August 31, 2016
Some more downside today as the Dow fell 53 points on better volume. The advance/declines were negative. The summation index is still trending lower. We were off over 100 points during the session but made a comeback. Still waiting on Fridays employment report. But the volume did pick up today so perhaps the players are returning earlier than usual. If we do get some weakness tomorrow, I might try the SPY September calls. I'll be looking things over again tonight. We are short term oversold on some of the major stock indices. GE was lower by 1/8 and the volume picked up here as well. Gold fell another $5 or so on the futures. The US dollar finished little changed. The XAU dropped 1 2/3, while GDX shed 3/8. Volume was average. Mentally I'm feeling OK. The Bollinger bands on the S&P 500 are implying a big move in the near future. My guess will be that it will happen on Friday. Which way things go is the question. What I don't want to do here is make a trade just for the sake of making one. To me things are leaning towards a bullish resolution to the long sideways congestion that we've endured throughout the summer. It isn't the best signal to go long before Friday but I do believe the odds lean that way. I'll have to look things over tonight. Asia was mixed and Europe lower overnight. My guess is that Thursday will be a wait and see affair.