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Tuesday, August 29, 2017

A one day reversal to the upside today as we opened much lower and closed with again.  Back and forth motion lately with no real progress made either way.  The Dow gained 57 points on light volume.  The advance/declines were barely negative.  The summation index is trending sideways.  We opened over 100 points down on some more North Korea angst.  But the market turned around and recovered but the volume remains thin.  I did adjust my open order for the SPY September puts but I am still considering just canceling this trade.  Perhaps waiting until after Labor day is the better strategy.  GE lost a few cents and the volume was light.  I'm still looking at the January calls here.  Gold was up early but dropped back to unchanged on the futures.  The XAU and GDX had slight fractional gains on average volume.  The US dollar was a bit higher today.  GDP revision tomorrow.  Mentally I'm feeling OK.  The market had every reason to sell off today but came back.  That's bullish price activity.  The technical indicators on the S&P 500 remain mid-range though.  The RUT is acting well now though and might be the leader going higher in the near term.  However we did break the longer term uptrend line here going back to the beginning of 2016.  This move higher here could just be a snap back to the broken trend line.  If that is the case we will be rolling over again.  I can make a case for a very short term rally here for the market based on some of my indicators.  But with the lack of traders in this week any move is suspect.  The sidelines are not a bad to be for now.  Europe and Asia were both lower overnight.  We'll see what tomorrow brings. 

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