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Friday, November 02, 2018

A pause in the bounce today as the Dow fell 109 points on heavy volume.  The advance/declines were negative.  The summation index is moving higher.  The overall market was weaker than the Dow.  The jobs report was stronger than expected.  After an initial pop to the upside the market sold off.  It wasn't as bad as it has been lately and I will again have to say that the decline has ended.  The short term technical indicators for the S&P 500 are trying to roll over but it hasn't happened yet.  I'm not exactly sure what the next trade will be.  I may simply wait for the move lower to fill the recent gap.  If that were to occur, then I could try the SPY calls.  If we continue higher form here into the Tuesday session, then I may try the SPY puts for after the election results.  I'm not exactly sure and will have to consider the possibilities over the weekend.  GE lost almost thirty cents and the volume remains extremely heavy.  Gold was off a few bucks as the US dollar was slightly higher.  The XAU and GDX basically finished unchanged on average volume.  Mentally I'm feeling tired.  That being the case, I do not want to attempt any trading ideas at the moment.  I'll try and get a good nights sleep and take it from there.  It was a good week for the bulls as the market stopped going down.  Today may have been the beginning of a retest of the recent lows.  If so that will set us up for the SPY November calls at some point next week.  There's still a couple of weeks left in the November option cycle.  Asia and Europe were generally higher to close out the week.  It's Friday afternoon and time for a rest.

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