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Thursday, September 28, 2017

The market is in a drift as the Dow gained 40 points on light volume.  The advance/declines were positive.  The summation index continues higher.  Not much to trade off of here lately as there have been no economic surprises one way or the other.  I did finally get stopped out of my SPY October put trade today for a 30% loss.  I also did roll into a higher strike price and my order was filled at the end of the day.  Although I don't know about the wisdom of this trade.  We are short term overbought on the technical indicators for the S&P 500 but I do think that there could be a bit more room to the upside.  The market break that I've been expecting in this option cycle just isn't happening.  GE was off 1/8 on average volume.  I'm still keeping an eye on things here.  Gold was up a couple bucks on the futures as the US dollar was lower.  The XAU rose 7/8 and GDX added a little over 1/8.  Volume was pretty light though suggesting that there isn't any interest here for now.  Mentally I'm feeling OK.  The loss on the SPY today was easier to digest than others.  I stuck to the plan and the trade just did not work out.  There was a brief chance for a small profit at one point.  I'm not sure if rolling into basically the same position is the right idea but I'm still worth giving it another try.  The market will go where it wants to though.  There's a chance that we'll be on hold until the jobs report in a week.  If that's the case I'll probably be stopped out again.  The Dow was stronger than the overall market today but the strength in RUT is definitely a positive.  Perhaps I'm just barking up the wrong tree here.  We could see a short covering rise from here too.  Europe and Asia were mostly up overnight.  We'll watch the overnight action and close out the week, month and quarter tomorrow.

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