Thursday, October 02, 2025
The Dow gained 78 points in an up and down session to a new all time high again. The advance/declines were slightly negative and volume was heavy. The summation index continues to trend lower. The S&P 500 and NASDAQ posted new records as well. The S&P continues to be short term overbought and continues to move higher. This has been the case for a couple of months now. We're getting another sell signal from one of our indicators. I've placed an open order for the SPY October puts and I'm leaving it out there. Ideally this order would be filled early next week but markets rarely cooperate. It is also a more tricky trading environment with the US government shutdown. We'll stick with the technicals though. Gold dipped $17 on the futures. The US dollar was a bit higher and interest rates ended flat. The XAU lost 1 2/3 and GDX fell 1/4. Volume was heavy. It was a very volatile session for the gold shares as GDX had an intraday swing of 4 points. Not sure what it all means but the gold shares finished well up from the lows of the session. Still considering the GDX October puts for now but really looking at the SPY options for the next trade. Mentally I'm feeling OK. The VIX was higher today which once again doesn't fit with an up market. The short term indicators here are moving up from the mid-range level. Still not sure what's next for the VIX. Asia and Europe were higher with the exception of the FTSE. We'll see where things go on Friday and take it from there.
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