Tuesday, November 29, 2016
Just hanging around today as the Dow fell off of its highs for the session. The most watched index rose 23 points on OK volume. The advance/declines were barely negative. The summation index is moving up. Still on the overbought side for the short term. Perhaps we'll get a chance to purchase some calls on Thursday, if the short term decline continues. Otherwise I'll have to take a wait and see approach. There's still room to go lower here as most stock indices are still pretty far above their 50 day moving averages. The prudent course of action would be to wait for a fall back towards those averages before attempting the SPY December calls. GE was off 20 cents on average volume. No hurry to do anything here. Gold barely budged on the futures and the US dollar was off a bit. The XAU and GDX had fractional losses on lighter volume. Mentally I'm feeling OK. End of the month tomorrow. There's an OPEC meeting on the docket. Plus the Feds beige book. Not sure what that will bring but trying to remain patient for now. I still think that the rally has legs, it is just a matter on the timing for getting long in the December option cycle. Not an easy task to be sure. But one that should be profitable if I can pull it off. So we'll wait and see. Asia was mixed and Europe generally higher yesterday. We'll keep an eye on the overnight developments.