Friday, December 13, 2019
The trade deal is done for now but we didn't see much of a rally. The Dow rose 3 points on good volume. The advance/declines were slightly positive. The summation index continues higher. The market rallies, then sold off and finished about mid-range of the days movement. We also got the election in England out of the way as well. The S&P 500 remains short term overbought and we've got some potential negative divergences in place as well. Just a week to go in The December option cycle. Yes, I'd like to maybe try the SPY puts here but the lack of time remaining is a concern. The market had every right to take off to the upside today but it didn't. Perhaps shorting any strength on Monday is the way to go but I'll have to think about it over the weekend. GE was down a dime on average volume. Gold was up over $5 on the futures. The US dollar continued lower which has been supportive of gold here. The XAU and GDX had fractional gains on light volume. Gold has held up well here and is a seasonal area of strength. We are overbought on the gold shares though and although I'd like to try the GDX calls it's hard for me to do with the indicators at high levels. Mentally I'm feeling OK. Retail sales came in lighter than expected. The VIX fell below the 50 day moving average and had decent drop. However this did not translate into a rally for stocks. Not sure what that means. I'll have to check the charts over the weekend and decide what to do from there. I do think that after next week the market will be in holiday mode for a couple of weeks. That should slow down the volume and the volatility potential. So maybe it's this week or nothing when it comes to the next trade. However there are no clear trading signals, just leanings towards this way or that. I'll have plenty of time in the next couple days to decide what to do or not do. Unlike the US, Europe and Asia saw rallies to finish out the week. It's Friday afternoon and time for a rest.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment