Monday, August 29, 2016
We started the week off with a pop to the upside as the Dow gained 107 points on very light volume. The advance/declines were almost 3 to 1 positive. The summation index will be trying to turn around once again. No sellers today but we can never trust a light volume rally. We were short term oversold on the S&P 500 and that has now been relieved. The small stocks were under performers for a change and that is something to keep an eye on. It is probably too late for the SPY September calls on the short term basis. If we had early week weakness we could have tried the calls. But todays price action probably negates that. GE was up 1/8 and the volume was light. Gold was little changed today as was the US dollar. The XAU gained 1 1/8, while GDX was flat. Volume was about average. Oversold for gold and the gold shares. Mentally I'm feeling OK. Although I'd probably like to wait until after Labor day for the next trade, we do have the jobs report on Friday. That will most likely be a market mover. You will want to have your position on before the release. I suppose that I'll wait to see how the rest of the week plays out before deciding what to do. If we continue higher on low volume the rest of the week it may pay to go the other way. But we'll just have to wait and see. Europe and Asia were mixed overnight with the exception of the NIKK that rallied sharply. It is the last week of summer and things may get even slower than they were today.