Thursday, November 29, 2018
A bit of downside today and that is to be expected after yesterdays huge run up. The Dow fell 27 points on average volume. The advance/declines were slightly negative. The summation has turned around again and is trying to head higher. My SPY December calls are back to break even. It looks like that this will be a trade that is held onto for a while. End of the month tomorrow and I would not be surprised to see some more selling. The market will be waiting to see what happens with the US/China meeting over the weekend. That will probably be the market mover for Monday. GE was up almost 1/4 on heavy volume. Has a bottom been put in here? I would expect some more selling in December but we'll see what happens. Gold and the US dollar finished little changed. The XAU and GDX had small fractional losses on light volume. Mentally I'm feeling OK. The VIX remains elevated so I would expect volatility to continue. If we can somehow get below the 200 day moving average here at around16, then I think we have the chance for a sustainable rally. For now the S&P 500 is really just bouncing around roughly between the 2800 and 2650 levels. Any break in either direction will tell where we're going. On the plus side if we break the declining tops line on the S&P, that will also take us above the 50 and 200 day moving averages. That would be a strong positive and no doubt would lead to higher prices. But we certainly haven't seen that happen yet. A drop and close below 2650 would put the bears back in charge. So we'll have to see how it plays out. Europe and Asia were both higher overnight, following the US lead. We'll close out the week and the month tomorrow.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment