Friday, February 01, 2019
A mixed bag to end the week as the Dow gained 64 points on good volume. The advance/declines were positive. The summation index continues higher. The NASDAQ was lower on the session. My SPY February puts were stopped out for a 30% loss. I can live with that. I still think that we're nearing some kind of top here but I could be wrong. I placed another order for some SPY puts but then canceled it. I decided to look things over again this weekend and go from there. Overbought and staying that way for the major averages. The jobs report was better than expected but the response on Wall street was muted. We are at a logical spot for some resistance to take place. However with only two weeks to go in the February option cycle the timing of any trade will have to be spot on. I'll consider my options over the weekend. GE was pretty much flat on the session but the volume remains heavy. Gold was off a couple bucks and the US dollar was little changed. The XAU and GDX had fractional losses on lighter volume. Although overbought it feels like there's still some upside room left for the gold shares. Perhaps running into the option expiration on the 15th. That's a guess for sure. Mentally I'm feeling a bit tired. Another good week for the stock market as the rally from the end of December still has legs. I think we're due for a rest but the market can stay overbought longer than you can remain solvent it's been said. Looking back I regret not holding on to the GDX calls still. But looking back is only good for study and not for regrets. I do feel good about simply taking the loss on yesterdays trade even though I got in at the spot I thought was right. Perhaps the V bottom is what we've seen and it certainly appears that way now. We've also just broken through the declining tops line of the S&P with good volume. That is certainly bullish. So there will be plenty to think about over the weekend. Asia was slightly lower and Europe higher overnight. It's Friday afternoon and time for a break.
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