Friday, September 27, 2019
Lower to close out the week as the Dow fell 70 points on average volume. The advance/declines were slightly negative. The summation index is still tracking sideways. The market did manage to finish up from the lows but we are in a precarious position. The overall market was much weaker than the Dow. The NASDAQ did manage to close back above its up trend line from June but another day like today and that line will be broken. The VIX climbed above 18 and is still above the 16 level. The S&P 500 touched its 50 day moving average and bounced. We are not yet completely short term oversold on the major stock indices. Negative trade headlines spooked the market today. I did not place any orders for the SPY. GE was flat on light volume. Gold was off eight bucks and came off of its lows as well. The US dollar finished little changed. The XAU fell a couple points, while GDX lost 2/3. Volume was heavy. Not yet oversold for the gold shares. Mentally I'm feeling OK. The market did come back in the final hour today when it looked like things were really going to get ugly. That is a positive. The NASDAQ held right where it had to but any negative action on Monday will change the picture. It's obvious that we're at an important juncture for the market. We either hold on here and start to move higher or things will probably really start to fall apart. Monday is the last day of the month. Not sure how that will affect things. We'll have to keep an eye on the weekend headlines out of the US and China. Anything good or bad out of there will drive things early Monday. I would still like to try the SPY October calls but I'll have to go over the indicators over the weekend. Plenty of time left in the October option cycle. Asia slightly lower and Europe was higher to finish out the week. It's Friday afternoon and time for a break.
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