Wednesday, October 28, 2015
The market roared back to the upside as the Dow gained 198 points on very heavy volume. The advance/declines were over 3 to 1 positive. We opened higher and then came all the way back to unchanged after the Fed statement. But then things turned around again for an almost 200 point gain in the last 2 hours. Still overbought and it doesn't look like I will get a chance to get in the upside game. We simply remain with the technical indicators near the top of their ranges. Plenty of overhead resistance here for the S&P 500 but I don't think it's going to matter. GE was off a few cents but the volume continues to be very heavy. I'm going to try and not chase it here. Gold rallied early but fell after the Fed. Unlike the overall market, gold did not come back. The futures were off $10 as the US dollar rallied. The XAU and GDX had fractional losses on good volume. No trades for the gold shares here. ABX earnings are out tonight for those still interested there. Mentally I'm feeling a bit frustrated as I haven't gotten any calls as the market remains overbought for an extended time. I'll say again that we are heading to new all time highs for the S&P 500. There is also no resistance once we get above there. I don't want to buy some SPY calls just for the sake of having them but perhaps just getting long is the answer. The 3rd quarter GDP is out tomorrow and that should provide the next catalyst for the market. There's still plenty of time in the November option cycle to do something but the best time to get long has passed. We'll see how the foreign markets react to the US rally in trading tonight.