Tuesday, October 20, 2026
Some early volatility but then it was sideways for the rest of the day. The Dow outperformed once again as it gained 529 points on good volume. The advance/declines were 2 to 1 positive. The summation index is traveling in a slightly upwards channel. The S&P 500 had a modest gain and the NASDAQ a very slight loss. The Dow in the lead is not the most bullish scenario. Some of the short term indicators for the S&P continue to trend higher. I'm not sure what's next here so no SPY option trades for now. Gold was off $19 on the futures. The US dollar was lower and interest rates were flat to lower. The XAU slipped 1 1/2, while GDX shed around 1/3. Volume is still pretty light here which shows no interest one way or another for the gold shares. Some of the short term indicators on GDX are pointing lower. My open order for the GDX November calls remains out there. Mentally I'm feeling OK. The VIX was lower today which fits with an overall upside day for stocks. The short term indicators here are moving down with room to go. The VIX seems to imply that the market will be moving higher in the near term. The spike higher on Friday looks like a one day wonder at this point. Waiting on the next market catalyst to appear. Asia and Europe were lower overnight. We'll see how things go tomorrow.
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