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Tuesday, December 10, 2019

Lower again today on the Fed waiting game.  The Dow lost 27 points on about average volume.  the advance/declines were just about even again.  The summation index is moving sideways now.  The market appears stalled now, waiting for the next catalyst.  Will it be the Fed tomorrow that gets things going?  Something new from the US/China trade war?  We've still got the deadline of the 15th looming in the background.  I'm not sure what to do here with regards to the SPY.  More overbought than oversold here.  Perhaps the sidelines is the place for me but I've been there for quite some time already.  Still a week and a half in the December option cycle.  GE was flat on the day and the volume was light.  Gold gained a few bucks while the US dollar was lower.  The XAU was up almost a point and GDX was up almost 1/4.  Volume was light.  The technical indicators now a mid-range for the gold shares.  I'm still looking at the GDX calls.  Mentally I'm feeling OK.  Considering there isn't anything expected from the Fed, the market is acting pretty sluggish.  Perhaps the impending impeachment and trade deadline are the cause.  We are still just about to make new all times highs again if we can get some sort of rally.  We had a weird end of the day sell off today as well but the market came back from it in the final 5 minutes.  I guess we'll see what happens with the Fed tomorrow and go from there.  I was hoping that GDX would head down to the 26 level again before I attempt to buy the calls there again.  But the Bollinger bands are contracting, with the lower band now above the 26 level.  My thinking is that the GDX calls will be my next trade.  Europe and Asia were lower last night.  We'll see what tomorrow brings.

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