Pageviews past week

Thursday, October 10, 2019

The market continued higher and the Dow gained 150 points on lighter volume.  The advance/declines were positive.  The summation index is moving lower.  We're still waiting on the results of the US/China trade talks and that should come out tomorrow.  The market will certainly move on any kind of announcement.  I'm still considering getting some SPY October puts at the resistance line of 295 if we get a light volume rise to there.  We are on that path at the moment.  However a positive reaction to a trade deal could result in a high volume break above the resistance line and calls would be in order then.  So we really still don't know which way things will go.  Nothing would surprise me at this point.  GE was up a dime on light volume.  Gold fell a dozen on the futures despite a loss in the US dollar.  The gold shares did not follow though as the XAU was up 2/3 and GDX was unchanged.  Volume was light.  GDX is right at its resistance line along with its 50 day moving average.  I'll be looking to see if we get a high volume breakout here as well.  I'm not exactly sure if that will happen as the trade talks will probably influence movement here as well.  It could very well be a very interesting Friday in the markets.  Mentally I'm feeling OK.  The VIX is trying to roll over here but it closed right on the 50 day moving average and is still above the 16 level.  The short term technical indicators have rolled over here and that gives hope for the bullish cause for stocks.  Some of the major stock indices appear to be on the verge of breaking resistance higher but it hasn't happened yet.  With a declining summation index, I'm still leaning towards a bearish conclusion but that could change rapidly depending on the next headline.  I'll simply be patient for now, not to mention the October option cycle is running out of time.  Europe and Asia were generally higher in last nights trade.  We'll keep an eye on the US/China trade talks and close out the week tomorrow.   

No comments: