Monday, October 10, 2016
The Dow rose 88 points today on light volume. The advance/declines were better than 2 to 1 positive. The summation index will still be heading lower but perhaps it is trying to turn around here. It was a partial holiday in the US with Columbus day. Not all of the players were at their desks. The market is still trying to make up its mind on which way to go here. Earnings begin again this week. No clear signal yet, so I'll remain on the sidelines for now. GE was off almost 1/4 on average volume. One of the problems that I have here for a rally is the continued under performance of a bellwether such as GE. It broke to another new low since mid July today. Gold rose $9 on the futures and the US dollar was higher today as well. The XAU and GDX had slight fractional gains on very light volume. Mentally I'm feeling OK. 9 days left in the October option cycle. It doesn't appear that I'll be making a trade unless things line up technically for the S&P 500. The indicators that I follow continue to hover mid-range for the short term. I will say that the continued strength in the small caps does bode well for the overall market going forward. However the timing of my next trade is always in question and I just don't have the answer right now. I'm still recovering from my recent bout with ill health but am feeling better at least. Asia was mixed and Europe higher overnight. We'll look for some follow through upside in the markets tomorrow.