Friday, November 01, 2019
The jobs report was a bit better than expected and the market liked what it saw. The Dow climbed 301 points on good volume. The advance/declines were almost 3 to 1 positive. The summation index is moving back up. Overbought and have been for weeks. No overhead resistance for the major averages. We're hitting new all time highs on the major stock indices. My idea for the SPY November puts was wrong. It might be appropriate as we move forward but it would be hard to buck the trend here. The market had chances to sell off this week but it didn't. That probably got rid of a lot of the selling and there are only buyers left. Shorts have to be covered as well. No overhead resistance is a huge factor too. GE was up 3/8 on good volume. Gold was up a buck as the US dollar continued lower. The XAU and GDX had fractional moves one way or the other on good volume. The gold shares are overbought but there doesn't seem to be any sellers left there either. We will get earnings form GOLD and NEM next week. That should move things either way for GDX. My open order for the GDX January calls looks like it will not be filled. I may have to adjust things again here. Mentally I'm feeling OK. The VIX stays oversold and that means the market is in rally mode. No telling how long this condition will last. All the way until this months expiration? I certainly don't know. The US/China trade tariffs have moved to the background. The US presidents pending impeachment hearings haven't affected stocks. The postponement of Brexit has elicited a yawn. The market is ignoring most everything and moving higher. You cannot get in the way of that. I'll be checking the charts over the weekend as usual. But we are in bullish mode for the foreseeable future. The positive seasonality is another plus. Asia was mixed with Europe higher. It's Friday afternoon and time for a break.
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