Wednesday, October 05, 2016
Back to the upside as we are in a holding pattern until Friday. The Dow rose 112 points on average volume. The advance/declines were positive. The summation index is still moving lower. Still just waiting on a break out higher or lower for the S&P. The catalyst could be the employment report on Friday. Plenty of time left in the October option cycle. I'd expect tomorrow to be a wait and see affair. GE was flat and the volume was average. Gold and the US dollar both finished the session little changed. The XAU and GDX had slight fractional gains on good volume. No real downside follow through to yesterdays gold debacle. However the damage was so severe that perhaps we're temporarily sold out there. Mentally I'm feeling OK but still tired and still not up to par. The technical indicators for the major averages remain mid-range with the exception of the TRAN, which are overbought. Perhaps the TRAN is leading the way here but time will tell on that. So far, the recent rally in the TRAN hasn't led the INDU higher. However we all know that the market goes where it wants. The relative out performance of the small stocks is another positive that has yet to manifest itself. I'll remain on the sidelines for now. Europe and Asia were mixed overnight. We'll continue to watch the overnight action.
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