Tuesday, October 09, 2018
Still waiting for a bounce as the Dow fell 56 points on average volume. the advance/declines were slightly negative. The summation index continues lower. Oversold now and staying there as the market has a definite lack of buyers. The NASDAQ did manage to eek out a small gain but it wasn't anything the bulls can be proud of. The VIX had another spike and retreat. This indicator looks like it will head back down and that could produce a bounce or rally if it occurs. Hasn't happened yet. I did adjust my open order for the SPY October puts. But as I said before this may simply be another missed trade. I'm still looking for some kind of short term upside but it isn't happening yet. GE lost a few cents on heavy volume. Gold rose almost $5 on the futures as the US dollar finished little changed. The XAU lost a point and GDX fell 1/3. Volume was average. Mentally I'm feeling OK. So where do we go from here? Weakness has taken over for sure. But we are short term oversold and due for some upside. The question is will that be the chance to get short or will it be the beginning of a new up trend? The correct answer to that question will bring profits. I'm leaving in my open order for the SPY October puts as time winds down in the October option cycle. RUT is trying to hold on to its 200 day moving average and what happens there will be telling. I'm expecting at least a bounce here as well. Asia was mixed and Europe lower overnight. We'll see if we get some bounce tomorrow.
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