Tuesday, October 25, 2016
Lower today as the Dow fell 53 points on good volume. The advance/declines were negative. The summation index is trending sideways. Better volume to the downside and that is not a positive. The market really can't get anything going one way or the other. Short term overbought and oversold conditions are met with small moves one way or the other to relieve the conditions. It is a tough and treacherous trading environment. I am still looking to try the SPY November calls this week if we continue lower. Perhaps tomorrow will be the day but the technical indicators are not exactly where I want them for a purchase. I may have to err on the side of caution. GE was off 1/4 and the volume was light. Poor performance here is another sign of trouble. However we've been dropping here for a few months while the overall market has moved sideways. Gold rose over $10 on the futures as the US dollar finished little changed again. The XAU was up 2 1/4, while GDX added better than 1/2. Volume was average. Mentally I'm feeling a bit tired, did not sleep well. I am still recovering from my hospital nightmare but do feel well enough to trade. The short term technical indicators for the major averages are starting to roll over again. That is one of my concerns in attempting to place a trade on the call side in the next few days. We do have some economic data coming out in the next 3 days. The most market worthy in my mind will be the first look at GDP for the 3rd quarter on Friday. I do believe that will be a mover for equities and as always the question is which way? I'm now thinking that if we head lower into Thursday morning, that will be where I'd take a chance on the November calls. But we still have tomorrow to get through. Things are never set in stone with this game. We could also simply head down from here and take out the lows. That would negate any ideas of trading in calls near term. So there's plenty to keep an eye on this week. Europe and Asia were mixed overnight, with nominal moves. We'll get earnings from AAPL after the bell and that could set the tone for tomorrow.