Thursday, February 06, 2020
Another day, another gain as the Dow rose 89 points on good volume. The advance/declines were slightly negative though. The summation index has stopped going down and is trying to turn up. Getting short term overbought now for the major averages. I canceled my stop loss order for the SPY February puts that I own. That goes against the rules but sometimes you have to know when to break them. That trade is still showing a loss but I am fairly certain that we'll see some downside in the next couple of sessions. At least that is what my work it pointing towards although it hasn't been correct lately. We'll get the jobs report tomorrow and that may get things going in either direction. GE was up a few cents and the volume was good. Gold was up $10 on the futures and the US dollar was higher again as well. The XAU was up 1 1/4, while GDX rose 1/3. Volume was light. I am now looking at the GDX April calls as my next trade with the gold shares. Perhaps this time I'll take the profits if I have them unlike the last attempt. Mentally I'm still not 100% with the lingering effects of the flu. The VIX did manage to barely close below its 200 day moving average today. The short term technical indicators remain mid-range there. Just two weeks left in the February option cycle as there is a holiday on the 17th. We've managed to get back to new all time highs for some of the major stock indices. We'll see if it's the beginning of a new leg up or if a rest is now needed. Europe and Asia climbed overnight as money has moved back into stocks around the globe. We'll close out the trading week tomorrow.
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