Friday, October 06, 2017
Just a slight pause today as the Dow dropped a little over a point on pretty light volume. The advance/declines were a bit shy of being 2 to 1 negative. The summation index is still trending up but today could get it to start to move sideways. We did see some selling today but it wasn't sustained. We are still overbought and staying there. The employment report showed a loss of jobs for a change but it was assumed to be weather related. The market has taken on a life of its own here. I'm really hearing too much bullish talk in the media lately despite the huge rise. More than overdue for a drop. GE was off over 1/8 and the volume picked up a little. I'm still considering the January calls here but GE has been a laggard during this rally. It may also see some end of the year tax selling as well. Gold was only up $4 on the weak jobs report and the US dollar had a slight loss. The XAU and GDX had minor fractional gains on average volume. Mentally I'm feeling OK. It was a week of trading losses for me as my strategy of laddering up the strike price on the SPY October puts was a failure. I'll be stepping aside for the rest of the October option cycle as of now. Things could change but we've had a sell signal for days on end and it hasn't worked. We're in a speculative bullish run up and there's no telling how long it will last. I won't exactly be surprised when it ends but trying to predict it is fruitless for me at this point. I was among the shorts that got squeezed. It's really back to the drawing board for me. I'll probably wait until the market gets back to a more normal situation and the indicators return to working as they should. For now we'll enjoy the ride up. Asia was higher and Europe a bit lower last night. It's the first Friday in October and time for a break.
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