Thursday, November 19, 2015
A day of just hanging around as the Dow 4 points on light volume. The advance/declines were barely positive. The summation index is still heading lower but it looks like it is trying to turn around. Todays economic data was in line with most estimates. We've got expiration tomorrow and then a holiday week coming up. The major index technical indicators are mid-range. I'm still holding the SPY December calls and they still show a profit. GE was off about 1/4 and the volume is heavy but not what it's been. I'd like to get the January calls here at some point. Gold was up $12 on the futures as the US dollar was off over 1/2 a point. The XAU rose a point and GDX gained 1/2. Volume was pretty light though. I really don't see an big rally for gold here, given the fundamental back drop. Low volume means not interest in my book. Mentally I'm feeling OK. We will close out the week tomorrow and it has been a good one for the bulls. Considering the drop in the previous week, we've made quite a comeback so far. I think it bodes well going forward unless there's a huge drop tomorrow. Next week should be slow with option premium erosion the main catalyst. After that it will still be a Fed waiting game for the meeting in December. The short term technical indicators still have room to head higher. For the medium term, the weekly candlestick chart for the S&P 500 should have a bullish look to it depending on tomorrow. I still think that the S&P 500 will reach new all time highs before the end of the year. Preferably before the December expiration. Most of the foreign stock markets were higher last night and that is a positive as well. We'll watch expiration Friday tomorrow and see what happens.