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Monday, August 28, 2017

Another one day reversal to the downside but it was of the mild variety.  The Dow fell 5 points on light volume.  The advance/declines were slightly negative.  The summation index is trying to turn around and is moving sideways.  The overall market was stronger than the Dow and that's a plus.  Trying to digest the effects of hurricane Harvey is one of the questions for the market.  Thin volume is another dilemma.  The RUT is acting better here and that could lead the market higher in the near term.  I still have in my open order for the SPY September puts but this trade could be canceled at any time.  I think the market wants to go higher here but without volume any rally would be suspect.  GE was off a couple cents on light volume.  Gold broke above $1300 today and continues to draw interest.  The precious metal futures were up $17 as the US dollar was a bit weaker.  The XAU gained 3 1/3, while GDX added 7/8.  Volume was heavy which is a strong positive considering it's the summer.  The breakout for gold and the gold shares is for real and has room to go.  I did miss the ideal entry point for the longer term calls here but I'm considering just jumping on board.  Price and volume are usually a winning combination.  Mentally I'm feeling OK.  Just trying to get the last week of summer out of the way at this point.  We do have the jobs numbers on Friday along with the end of the month on Thursday.  Plus a GDP revision on Wednesday.  So there will be a lot of information but not a lot of traders.  This makes for skewed trading.  The best course of action may just be inaction.  However if things line up just right here there will be a trading signal generated this week.  hasn't happened yet.  Asia was mixed and Europe lower overnight.  We'll keep an eye out on any overnight developments.  

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