Friday, December 02, 2016
It was kind of a wait and see type of market today despite the employment report. The Dow dropped 21 points on average volume. The advance/declines were positive and the overall market was a bit stronger than the Dow. The summation index is moving sideways for now. The jobs report was pretty much in line with expectations and we got a small rally from that. But there's really no conviction either way for stocks at the moment. I think that we're waiting for the referendum vote out of Italy on Sunday before we get going anywhere. I did place an order for the SPY December calls but it wasn't filled. I'll try again on Monday if I get the chance. GE was off a nickel and the volume was light. Gold found some buyers on Italy angst and the futures rose almost ten bucks on the futures. The US dollar was a bit lower. The XAU went up 3 points, while GDX added 3/4. Volume was good. Mentally I'm feeling a bit tired. I still think that we go higher from here and will be once again look to buy weakness on Monday. The S&P 500 has come off of its highs and is short term oversold on one of my indicators. We aren't even mid-range yet on most of the technical indicators here but if we get an Italy led sell off on Monday we'll be there. That would be the ideal scenario for my case to purchase the SPY December calls. Weakness Monday morning would be all I need to see. However we could simply rally at the open as well. Like I said before it is a wait and see game at this point. I do still like the idea that price and volume lead the way. I'm looking for new all time highs again before the year is out for the S&P. All there is to do now is go over the charts this weekend, monitor the vote in Italy and the market reaction on Sunday night. For now it's Friday afternoon in December and time for a break.
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