Thursday, August 31, 2017
Continuing higher as the Dow gained 55 points on better volume. The advance/declines were about 3 to 1 positive. The summation index is moving higher. The overall market was much stronger than the Dow and that is a plus. Getting short term overbought but the market still has the feel of wanting to go higher. My open order for the SPY September puts was filled this morning and is already showing a loss. I'm early on this trade and should have simply canceled this order in the previous two days. I have at least placed the stop loss order here, so at least I did that right. The volume was better today and that is another plus for the bulls. GE was up 1/4 or so on very good volume. Perhaps GE will finally get things turned around here. I'm looking out to the January calls here. Gold was back up a dozen on the futures as the US dollar was a bit lower. The XAU rose 2 points, while GDX gained 1/2. Volume was average. I did like the longer term calls here over a month ago but fiddles around with the order too much and missed this move. It seems that my tactics have not been right over this summer so far. Mentally I'm feeling a bit tired, not sleeping good as of late. So I'm in the next trade and already not liking it. It appears we're heading to new all time highs as the small stocks are leading the way here. The only thing that would change that scenario would be a sell off on the employment report tomorrow. I don't see that happening. I will probably be stopped out of the SPY put trade tomorrow on any upside move. The RUT isn't near its all time high but the NASDAQ is just about there. It looks like it will be back to the drawing board for me. In retrospect, waiting until after Labor day to attempt any kind of put trade would have been the best strategy. I thought about it but did not follow through on that consideration. The volume on this rally has been light until today. With the summation index now heading higher, the path of least resistance is up. Europe was higher and Asia mixed overnight. Whatever traders are at their desks will await the unemployment report in the morning. We'll close out the trading week tomorrow.
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