Friday, November 09, 2018
To the downside today as the Dow fell 201 points on good volume. The advance/declines were 2 to 1 negative. The summation index is still moving up. We did finish well off of the worst levels for the day. Higher producer prices were listed as the cause. But we were short term overbought and that's what we'll pay attention to. I never got filled on any of my SPY November put orders and it is another opportunity missed. I believe that it's too late for this idea and now will focus on the calls. I'm not sure that I'll be trying them next week for November but going out to December may be the way to go. There is an extra week on the December options though and premiums are high. GE dropped another 1/2 on extremely heavy volume. This issue just can't seem to find a bottom. How the mighty have fallen. A former bellwether of the market is now just an afterthought. Gold fell $15 on the futures as the US dollar rallied. The XAU was off 1 1/4, while GDX shed 1/3. Volume was a bit above average. I'm still considering the GDX January calls. Mentally I'm feeling OK. Frustrating is what it is here for me as I've missed another chance for gains to the downside. It wasn't as good a set up as the former decline but it was there for the taking at least. Now I'll have to focus on when to get long. My take on things has been pretty good lately but the trading execution hasn't worked. This year it seems that it's been one thing or another that has inhibited my success. You just have to keep going in the game because the market doesn't wait for anyone. And it certainly doesn't care. I think that the longer term trend has moved back to being positive, with the summation index now moving up. The seasonality factor is now in the bulls favor as well. I'll consider what to do over the weekend but I'm favoring a longer term call trade at the moment. We'll have the Thanksgiving holiday week coming up after expiration and that is usually positive. Europe and Asia were lower. It's Friday afternoon and time for a break.
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