Friday, September 08, 2017
We closed out the week with a whimper as the Dow added 13 points on lighter than average volume. The advance/declines were slightly negative. The overall market was weaker than the Dow. The summation index is still moving up. It looks like things are setting up to move higher in the near term according to one of the indicators that I look at. We do have expiration week and its usual positive bias coming up. I don' think that I'll be trying a short term trade next week but if the signal does show up I just might. But I am still medium term bearish and do consider the SPY October puts as a better trade going forward. GE was off another 20 cents on good volume. I'd really like to get the January calls here but if the market does drop in the next few weeks it will most likely take GE with it. Gold finished flat on the session and the US dollar was slightly lower. The XAU dropped around 1 1/2, while GDX lost 1/4. Volume was light. Mentally I'm feeling OK. We've got another hurricane to deal with over the weekend along with whatever happens with North Korea celebrating an anniversary. Not much economic data early next week so it's hard to see what the market will take its cues from. I might see a buy signal from one of my indicators but the majority of the short term technical readings are still overbought. So it isn't exactly a clear picture going forward. I'll probably err on the side of caution but that may change after going over everything again this weekend. Nobody is looking for a move to new all time highs but there's a chance that could happen as well. The market has been known to stay short term overbought for an extended time. Plenty to ponder in the coming days. Asia was lower with the exception of the Hang Seng, while Europe was basically flat in last nights trade. It's Friday afternoon and time for a rest.
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