Friday, December 11, 2020
Mixed messages continue as the Dow rose 47 points on lighter volume. The advance/declines were negative. The summation index is still moving up. The overall market was waeker than the Dow but it was a pretty uneventful session. We were lower form the start and spent the day making up ground. The short term technical indicators for the S&P 500 have rolled over some more but remain overbought. We are almost at a buy signal for one fo the short term indicators that I follow. I'm thinking of perhaps trying the SPY December calls for options expiration week. Buying on any weakness on Monday morning would be the plan. GE was off over 1/8 on average volume. Gold futures and the US dollar were both up slightly. The XAU dropped 1 1/2, while GDX had a fractional loss. Volume was pretty light. I'm leaving my open order for the GDX January calls out there. Mentally I'm feeling OK. The VIX had a pop higher today and then backed off. It isn't completely overbought as of yet but todays action could have signaled that the recent market weakness is done. That's how I'm interpreting it right now. It's another reason to potentially try the SPY December calls next week. I'll have to go over everything again this weekend but that is the idea for now. We should get some decent market movement next week. We've got retail sales data coming out and the Fed to deal with. It's also the last full trading week before the holiday week of Christmas. I would expect things to start slowing down then. I'll go over the charts this weekend and then decide what to do. Asia was mixed and Europe lower to end the week. It's Friday afternoon and time for a break.
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