Friday, October 23, 2020
Kind of a mixed bag today as the Dow was lower and other indices were higher. The most watched index fell 28 points on average volume. The advance/declines were almost 2 to 1 positive. The summation index is moving sideways. Both the NASDAQ and the S&P 500 sported small gains on the session. We are running in place here. The short term technical indicators for the S&P remain mid-range. It feels like we are in a holding pattern until the results of the US presidential election. The pandemic virus remains. The stimulus package is still all talk and no action. The market remains a hostage to these outside influences. I still think that we're heading higher but sideways is the trend for now. GE was off a few cents, dropped from its highs for the day and is overbought. Gold was off a few bucks but did finish up off of the lows. The US dollar was lower. The XAU was down about a point, while GDX shed 1/3. Volume remains very light. My open order was almost filled today for the GDX November calls. I'll decide over the weekend if this is a trade that I really want to do. Not completely oversold here yet so I may have to adjust the order. I'll see how gold is trading on Sunday night and take it from there. Mentally I'm feeling OK. The VIX was lower today and is heading back towards its 50 day moving average. The short term indicators have turned back down and have room to go lower. The TRAN and the Russell 2000 were both up today and I think that bodes well for the bulls moving forward. I'm still leaning bullish here on the market but we may have another week of sideways malaise. I could be wrong and often am. Lately my view on the markets hasn't been accurate. We'll see if it gets any better as we go along in the November option cycle. Europe and Asia were generally higher to finish the week. I'll be checking the charts as usual over the weekend and deciding what to do about the potential GDX November call trade. It's Friday afternoon and time for a break.
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