Monday, November 13, 2017
Once again the market sold off at the open and came all the way back. The Dow gained 17 points on average volume. The advance/declines were slightly negative. The summation index continues lower. The overall market was just a bit better than the Dow. We'll get inflation data and retail sales this week. It's also options expiration week so we'll look for the usual upside bias. Perhaps that explains todays price action. I don't have any SPY trades in mind here. GE got clobbered today as it cut the dividend in half. It lost 1 1/2 on outrageously heavy volume. I did place an open order for the January calls here but then canceled it to go to a lower strike price. I'm leaving the order good until canceled so if we see some more downside it may get filled. This could be another trying to catch the falling knife trade and we all know what usually happens there. I'm willing to give it a shot here though. GE won't drop forever. Gold gained a few bucks on the futures as the US dollar was barely lower. The XAU and GDX barely moved on very light volume. No interest in gold for now. Mentally I'm feeling a bit better but not completely back to good health. I should be back to normal soon. More rest will hopefully do the trick. The VIX looks like it is ready to roll back down and that should lead to higher prices. The RUT appears to be trying to put in a bottom here as well and that would be bullish. It really appears as though the major stock indices have put in some sideways consolidation and now are ready to go higher. A turn back up in the summation index would solidify that thesis. Hasn't happened yet but may very well in the coming sessions. We'll be watching. As for the potential GE trade, I'll just have to see what goes on from here. GE did finish off of it's low for the day, so there is a chance that the worst is now over. There's also the possibility that the shorts are simply starting to cover here. Time will tell. Asia was mixed with the NIKK taking a big drop. Europe was lower. We'll keep an eye on the overnight action.
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