Monday, October 23, 2017
Lower for a change to begin the week as the Dow fell 54 points on almost average volume. The advance/declines were almost 2 to 1 negative. The summation index is trending sideways but that could change here soon. No real news today but we've been overbought for so long that some kind of downside action is way past due. We do now have a bearish engulfing pattern on the SPY daily candlestick chart. So we'll see where we go. GE fell back 1 1/2 on the same very extremely heavy volume that we saw on Friday. I am looking at the longer term calls here and now am pretty sure that will be my next trade. I think that the ideal scenario would be to purchase them the day that GE cuts its dividend but I have no idea when that will be. Rumor has it that it could be at an analysts meeting on November 13th. Gold was up a couple bucks on the futures, while the US dollar ended little changed. The XAU and GDX had fractional losses on light volume. Mentally I'm feeling OK. Not much on the economic data front this week with the exception of GDP on Friday. The VIX had a small spike up today and that is a shift from what we've seen lately. All selling has been met with buying lately so we'll have to see what happens tomorrow. It's too early to tell if an actual short term top is in. But it's possible. Europe and Asia were both higher with the exception of the Hang Seng. We'll see what happens tomorrow.
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