Tuesday, October 26, 2021
Today the Dow managed a 15 point gain on average volume. The advance/declines were negative. The summation index is moving up. The market did come off of the highs for the day. Pretty much waiting for more earnings reports along with the rest of the weeks economic data including the first look at 3rd quarter GDP. Gold was off around $15 on the futures. The US dollar was higher and interest rates remained steady. The XAU and GDX had fractional losses on light volume. The gold shares continue to out perform the metal itself and that is bullish. I am still interested in getting some January gold share calls if we ever see some type of pullback. The recent advance in GDX has had staying power as the short term overbought condition remains in place. Hoping to see short term oversold at some point between now and the end of the year in order to purchase the January calls. That is the plan at the moment. Mentally I'm feeling OK. The VIX was higher today but remains in a short term oversold condition. It is still suggesting that the rally has plenty of legs and I'm inclined to agree. We may not see an entry point to attempt the SPY November calls. Europe higher and Asia generally lower in last nights trade. We'll see what tomorrow has in store.
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