Thursday, May 09, 2024
The stock market keeps on keeping on as the Dow climbed 331 points on light volume. The advance/declines were better than 2 to 1 positive. The summation index is moving up. Sellers can't be found. I did place an order for the SPY May puts but it wasn't filled. This trade is going against the prevailing trend but we have gotten a short term sell signal on one of our more reliable indicators. We will try this trade again tomorrow morning if we see the market open higher. The S&P 500 remains short term overbought. The Dow was the leader today with the NASDAQ lagging. Gold was up $28 on the futures. The US dollar was lower along with interest rates. The XAU was up 4 1/2, while GDX climbed about 1 1/4. Volume was good to the upside as gold is moving up again. Money wants to be in this space. GDX is now short term overbought so we'll have to wait for it to get back to oversold before we can try the calls here again. We did at least have the right idea here but did not get filled on our trading order attempts. Mentally I'm feeling OK. The VIX was lower and remains short term oversold. The VIX still implies more gains for stocks going forward. It now appears that our open order for the SPY May puts was filled after the bell. So we are in the next trade. The stop loss order has been placed. This is a risky trade but they all are. Short term in nature, we could be out tomorrow. We've got a signal there so we'll give it a shot. Asia was mixed and Europe higher overnight. We'll close out the trading week tomorrow.
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