Thursday, September 01, 2016
The market again tried to sell off today but made it all the way back. The Dow finished with a gain of 18 points on light volume. The advance/declines were slightly negative. The summation index is still trending lower. You just get the feeling that the S&P will be moving higher tomorrow with the recent price action. The daily candlestick chart now shows 2 hammers at the lower Bollinger band. The short term technical indicators are mid-range or a bit lower. I didn't purchase any SPY calls but I certainly think that is the correct play for tomorrow. We'll see what happens after the employment numbers are released. GE was off a few cents and the volume was pretty good. Not sure what to make of that. Gold was up 5 bucks on the futures as the US dollar was lower ahead of tomorrow. The XAU rose 3 1/8, while GDX added 7/8. Volume was heavy. I did place an overnight order for some ABX September calls after checking the charts last night. The double top price objective in ABX had been met and the technicals were blown out to the downside. My order wasn't filled. ABX was up about 3/4. I may revisit this idea if we head back below $17. Mentally I'm feeling OK. It is simply a matter of waiting for the jobs report and the market reaction now. There really isn't anything else to say. If there would have been a decent signal here, I would have attempted a trade in the SPY. But I erred on the side of caution. I do still expect us to move higher in the near term. We'll see. Europe and Asia were mixed overnight. We'll close out the week tomorrow.