Thursday, October 15, 2015
Back to the upside in a big way as the Dow gained 217 points on good volume. The advance/declines were 4 to 1 positive. The summation index continues higher. We might get to 2050 on the S&P 500 sooner rather than later. I'm still a believer in higher rather than lower prices going forward. I'll be looking at the SPY November calls if we come off of the overbought readings in the short term technical indicators. For now it's patience as the main idea. GE was up 3/8 on very heavy volume. Earnings out tomorrow morning. We are right at the 52 week high and will probably shoot higher tomorrow. That's my guess at least. There's no overhead resistance once we move higher past here for GE. If by chance GE falls tomorrow, I'm still interested in the November calls. Gold was up a few bucks on the futures despite strength in the US dollar. The XAU and GDX didn't do much on light volume. Overbought now for the gold shares. Mentally I'm feeling OK. The market acts like it wants to go higher here. However resistance is not that far off. With an extra week in the November option cycle, there isn't any hurry to take on another trade right now. We'll wait for the next signal and act on it when it occurs. If GE does break out to new highs tomorrow, then I think the overall market will be going a lot higher before the end of the year than most believe right now. That's my take on things at the moment. The foreign markets were higher overnight. So we'll get through tomorrows expiration and go from there.