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Wednesday, November 20, 2019

Some selling today as the Dow fell 112 points on heavy volume.  The advance/declines were negative.  The summation index continues to drift lower.  US/China trade worries caused a sell off mid way through the trading session.  However the market found buyers and well off of the lows for the day.  The Fed minutes didn't reveal anything new and there wasn't much market reaction.  The short term technical indicators have now rolled over for the major stock indices.  Perhaps the long awaited decline to the break out point is about to begin.  Or this is just a slight bump in the road to higher prices.  Time will tell.  GE was off 1/8 on average volume.  Still pretty overbought here.  Gold was slightly lower and the US dollar was slightly higher.  The XAU and GDX had slight fractional moves higher on light volume.  Mentally I'm feeling OK.  We're still at the mercy of the next trade headline and that's not an easy way to go.  The options trading is hard enough on its own.  I'm probably going to let next weeks holiday pass before I seriously take a look at the SPY options.  Of course I'm keeping an eye on gold and the gold shares.  I'm still leaning bullish there but would need to see a move back to the 26 level on GDX to get interested in the January calls there.  I do have the open order still out there but that can be adjusted if we start to drop on GDX.  However at the rate things are going, it's possible I won't do a trade there as well.  So it's watch and wait for now.  Europe and Asia were lower overnight.  We'll see what tomorrow brings.

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