Thursday, November 17, 2022
A bit lower again today as the Dow lost 7 points on light volume. The advance/declines were around 2 to 1 negative. The summation index is starting to congest. Once again the overall market was weaker than the Dow. We did have a gap lower to begin the trading day and then spent the rest of the time making it back up. The short term indicators for the S&P 500 remain overbought. We'll see how expiration Friday goes tomorrow. Gold was off a dozen on the futures. The US dollar was a bit higher along with interest rates. The XAU fell 2 points, while GDX lost 3/8. Volume was average. GDX remains short term overbought but it is heading back down to the neckline for now. If it gets back to the 26 level we may have our chance for the GDX December calls. Mentally I'm feeling OK. The VIX was slightly lower today. The daily candlestick chart there looks like it wants to go lower which would be a plus for stocks. But this indicator has been a tough nut to crack for me lately. I can't say that I have any confidence when it comes to interpreting the VIX for now. We've got option expiration tomorrow and then a Thankgiving holiday shortened trading week on tap. Could be a good time to just stay on the sidelines but we'll see. Europe and Asia were generally lower last night. We'll close out the week tomorrow.
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