Monday, November 05, 2018
A mixed bag today but the Dow managed a nice gain of 190 points on average volume. The advance/declines were almost 2 to 1 positive. The summation index is moving up. The NASDAQ had a loss for the day led by a decline in AAPL. RUT barely moved as well. I think we'll get some market movement after the election results tomorrow night but I could be wrong. There isn't exactly a clear signal right now but I did place an open order today for the SPY November puts. It wasn't filled. I will probably try again before the close tomorrow. The VIX is making its way into oversold territory and still has an elevated reading. This implies that we will remain seeing triple digit gains or losses in the coming sessions. GE was flat on the day and the volume remains pretty heavy. Gold didn't have much of a change and the US dollar was slightly lower. The XAU and GDX barely moved again on light volume. Mentally I'm feeling OK. The short term technical indicators are moving higher but are not completely overbought yet. Some of the smaller stock indicators are more mid-range than anything else. Taking a short position here is not without risk. Not much on the economic front this week. I am intermediate term bullish here because the summation index was blown out to below the zero line and we have now moved back up. Declines can be bought and there may be an opportunity to try the SPY November calls here as well before option expiration. The put trade that I'm contemplating now is more of an election based theory than anything else. I'll think about it some more tonight but there is a chance that I'll put it on. Europe and Asia were generally lower overnight. We'll see how it goes tomorrow.
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