Wednesday, November 16, 2016
Taking a breather as the Dow fell 55 points on lesser volume. The advance/declines were slightly positive. The summation index is heading up. The overall market was stronger than the Dow, with the NASDAQ higher on the session. We were overdue for some profit taking or decline and got that today. I'm still considering a short term trade with 3 days to go on the November option cycle but will probably hold off. I'm considering the December SPY calls as well. We remain overbought on the short term indicators. I do look for higher prices going forward though. GE was flat on the day with light volume. Gold didn't do much today as the US dollar continues to climb. The XAU and GDX had fractional losses. Volume was light. Mentally I'm feeling OK. It has been quite a run for stocks but I would expect them to take a rest here with a holiday week coming up. If we can get the short term technical indicators to come off of their overbought condition perhaps we'll see an entry point for a SPY December call trade. As for trying another SPY November call trade with 2 days to go, we'll have to see weakness in the morning tomorrow and go from there. The risk would be very high to try that trade but I might. I expect stocks to finish the week higher. Plus we could see some more of the positive expiration week bias. Once again, the short term trades are not my greatest strength. Asia was mixed and Europe lower overnight. We'll keep an eye on the overnight developments and see what tomorrow brings.