Wednesday, September 25, 2019
Back to the upside today as the Dow gained 162 points on average volume. The advance/declines were shy of 2 to 1 positive. The summation index is now moving sideways. I did place an order this morning for the SPY October calls but it did not get filled. Opportunity missed for now. I may try again tomorrow if we head lower but the ideal time for purchase has probably passed. I'm not sure if this is a turnaround that will lead us to new all time highs gain. The S&P 500 is forming what looks like a rising wedge and that is usually bearish. GE was up about twenty cents on lighter volume. Gold dropped over $25 on the futures as the US dollar was higher. The XAU fell 3 1/8, while GDX dropped over a point. Volume was heavy. Thankful for not chasing the gold shares here but would like to try the GDX calls again when we get back to short term oversold. Mentally I'm feeling OK. Disappointed to not be in on the SPY October call trade as I needed to make adjustments early in today session but failed to do so. That said, the work at least was correct as short term upside has happened. Whether or not it continues is the question. Impeachment talk continued but the market ignored it and that may be all we need to know. Some of the short term technical indicators look like they want to turn back up but there's nothing definitive yet. We also have not made it all the way to oversold. Perhaps buying weakness will work tomorrow but that remains to be seen as well. Like I said, I'm not sure this is the beginning of a run to new all time highs but it could be. We still have a few days left in September to get through and October can be a roller coaster month. I do like that fact that the VIX closed back below its 50 and 200 day moving averages. That certainly helps make the case for bullishness here. But we all know things can change with the next headline. Europe and Asia were lower in overnight trade. We'll see how it goes tomorrow.
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