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Thursday, September 27, 2018

Stumbling around here or so it seems as the Dow gained 54 points on light volume.  The advance/declines were positive.  The summation index continues lower.  The market once again could not hold on to the early gains that it made intra-session.  This certainly isn't positive price action but we haven't completely broken down yet.  The VIX made it back below its 50 day moving average but it doesn't feel like it will stay there.  We'll get the end of the month tomorrow with squaring of positions.  I would not be surprised to see more selling to lock in gains.  But that's a guess as usual.  To me this seems like a grind lower and that isn't the worst thing in the world.  I am leaving my open order for the SPY October puts out there but I doubt that it will be filled.  GE was up another 1/8 and the volume remains heavy.  Gold dropped a dozen as the US dollar rallied.  The XAU and GDX had slight fractional losses on average volume.  the gold shares are now out performing the metal itself and that is a good sign for the bulls.  I'm keeping an eye out on the GDX January calls again.  Mentally I'm feeling OK.  The triple Q's and the NDX are just about to reach new all time highs.  The RUT remains below its 50 day moving average.  Big cap indices are stalling below their records.  It is quite a mixed picture.  So much so that it's easy to really make a case for either way here.  But with the summation index trending down we have to respect that.  Once again I'll say that the breadth has been weak lately and that is not a plus.  So I will just have to keep watching and waiting for now.  I suppose we'll let tomorrow pass and take it from there.  Asia was lower and Europe slightly higher overnight.  We'll close out the week tomorrow.

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