Monday, March 09, 2020
It is a rare event but we are going through the zero line on the summation index and the market is falling apart. The Dow fell 2014 points on insanely heavy volume. The advance/declines were 42 to 1 negative. What? I can't remember seeing things that negative. These are crazy days for the stock market. All markets really. The S&P 500 closed below the up trend line that began the bull market in 2009. It looks like the long bull market is coming to its end. Oversold and staying that way. We are blowing through the support for the S&P, might find some at the 200 week moving average at 2640. Or might not. The China virus worries have taken over. I don't know when the decline will end so I'm on the sidelines with respect to the SPY. 9 days to go in the March option cycle. GE lost over a buck on very heavy volume. Gold lost around $10 and the US dollar was lower as well. The XAU lost 8 3/4, while GDX shed 2 1/8. Volume was good. Everything is being sold as money needs to be raised to cover other losses and margin calls. My GDX March calls are now back in the red. The short term technical indicators here have rolled over and they have room to go lower. I'm thinking about perhaps going out to the April option cycle and trying this trade again. But the atmosphere at the moment is so uncertain I may just stay on the sidelines here as well. Mentally I'm depressed and grieving as I had to put my dog to sleep over the weekend. Sad times. But the markets go on. The VIX made it above the 60 level today. Could it go higher? Yes but it very overextended. Just hold on to your seats as this too shall pass. Markets around the world sold off and I'd expect more of the same tonight. We'll see how tomorrow goes.
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