Friday, September 20, 2019
It was a downer to end the week as the Dow fell 159 points on expiration heavy volume. The advance/declines were barely positive. The summation index is still moving up. Hard of what to make of todays session with the expiration taking place. The short term technical indicators have rolled over but some of my other tools suggests that this isn't the beginning of something big to the downside. However we could still see near term weakness but without a fatal drop. The recent breadth also does not suggest a market rout on the horizon. GE was off a nickel on average volume. Gold found buyers in the afternoon and the futures advanced $18. The US dollar was slightly higher. The XAU rallied 1 1/2, while GDX gained 5/8. Volume was good. It appears that I've missed out on the GDX October calls. The short term indicators say that the gold shares have room to move higher here but I'm not inclined to chase it. I may change my mind over the weekend. Mentally I'm still a bit tired. The VIX turned higher today as it is now coning off of an oversold reading. We are still below the 16 level and that's something to watch. As I said before, the end of the month could get dicey since we've had such a good first half of September. I don't have any SPY trades in mind at the moment. I'm still trying to adjust back from being away for a couple of weeks. I think my next trade will be in the gold shares but I'm not exactly sure if chasing them here is the thing to do. Plenty to ponder this weekend. For now I'll just have to try and get some rest to be ready for Monday morning. Asia was higher and Europe mixed last night. It's Friday afternoon and time for a break.
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