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Friday, September 28, 2018

It was a day of nothing much as the Dow rose 18 points on average volume.  The advance/declines were positive.  The summation index is still heading lower.  No direction today to close out the month of September.  The big cap short term indicators are trying to turn around.  The small caps remain slightly overbought with the exception of RUT which is oversold.  I cancelled my open order for the SPY October puts.  No need to have it out there over the weekend.  At the rate we're going I may switch over to the SPY calls.  Next week will feature the employment report but that's not until Friday.  I'm thinking that perhaps we'll see some beginning of the month money flows early.  GE was off 1/4 and the volume remains good.  Gold gained $8 and the US dollar was a bit higher too.  The XAU and GDX had slight fractional gains on average volume.  Mentally I'm feeling OK.  The summation index has been heading lower but we really haven't seen much of a decline.  The last time this happened it set the market up for a short term rally.  Could that be the case this time as well?  That's the question here really but I certainly don't have an answer.  At this point I'm in the camp that things could go either way.  I will look things over this weekend and try to make up my mind as of what to do next.  There is still plenty of time in the October option cycle to attempt a trade.  The VIX remains below its 50 day moving average and is in a zone where we should see a rally but that has happened either.  Like I said, I'll have to look at the charts this weekend and try to determine the next course of action here.  Asia was generally higher as was Europe in overnight trade.  It's Friday afternoon and time for a break.

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