Monday, October 24, 2022
The rally lives on as the Dow climbed 417 points on good volume. The advance/declines were positive. The summation index is still trying to turn back up here. The S&P 500 is almost at the next resistance line at 3800. Getting short term overbought here now though. The Dow led the way today and that isn't the most bullish scenario. Plenty of earnings due out this week so we'll get some moves one way or the other. For now it looks like the sellers have retreated. Gold dropped a couple bucks on the futures. The US dollar finished little changed and interest rates were mixed. The XAU shed 1 1/3, while GDX lost 3/8. Volume was average. I did place another open order for the GDX November calls and I'm leaving it out there. Not as close to being in the money as I'd like it to be but the premiums are inflated as we've just rolled into the November option cycle. If it does get filled and the head and shoulders pattern on the daily GDX is valid the trade will work. Unless I mismanage it again of course. Mentally I'm feeling OK. The VIX was up slightly which does not coincide with a market up over 400 points. Somewhat short term oversold on some of the technical indicators here. Not sure what's going on with the VIX here. That's been the case for a while now with this indicator. Europe was higher and Asia mixed to start the week. We'll keep an eye on the overnight headlines.
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