Wednesday, October 29, 2014
We bounced around today and the Dow finished with a loss of 31 points on good volume. The advance/declines were negative. We did sell off after the Fed but came back for the rest of the session. The summation index continues higher. My November OEX puts are in the red. The stock indices are still overbought but it hasn't led to any type of sustained decline. The trend is up and I need to exit this trade. The entry point was early and I doubt it will get back to the buy price. We'll get the GDP report tomorrow, perhaps that will provide some movement. GE was off about 1/4 on average volume. Hanging around the 50 and 200 day moving averages here. Gold fell about $20 on the futures with the aftermarket loss thrown in. The US dollar had a strong session once again. The fundamentals for gold remain bearish. The XAU fell almost three points. ABX off 2/3, while GG and NEM fell around a buck. Volume was above average to the downside. When you think that the gold shares can't go any lower, they still do. Earnings due in the next couple of trading sessions but I doubt now that it will matter. I guess I'm lucky that I didn't try the gold share calls again. Mentally I'm feeling OK. A small spike in the VIX today but it didn't end up amounting to anything by the close. You just get the feeling that the market will now churn its way higher from here. No retest of the recent lows from what I can tell. End of the month coming up on Friday. I'll have to consider selling my OEX November puts before they get stopped out. The strategy was to wait until the Fed today. That passed without ant meaningful decline. Unless we sell off tomorrow, there won't be much reason to hold on. The gold shares are getting down to levels that I did not believe were possible. My thought is that they could even go lower. I'll eventually try the January calls though. When is the question. We'll keep an eye on the foreign markets tonight and go from there.
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