Tuesday, December 01, 2015
Back to the upside to begin the month of December as the Dow gained 168 points on average volume. The advance/declines were 2 to 1 positive. The summation index continues higher. Todays economic data was mixed. The short term technical indicators for the major indices are overbought but they could stay that way. My SPY December calls remain in the black. I still think that we will see 2120 on the S&P 500 soon and perhaps by the end of the week. I will consider selling this position if we get there. GE was up 1/4 on good volume. GE was lower during the session and I did place an order for the January calls here but the order wasn't filled. It looks like I could have missed this trade but I am leaving the order open in case GE heads back down again. Gold was up $3 on the futures as the US dollar was lower today. The XAU gained 1 1/2 and GDX rose 3/8. Volume was nothing special. Mentally I'm feeling OK. The market is heading higher as anticipated for now. There is a bullish belt hold pattern on the daily Dow candlestick chart. The TRAN turned around today as well. We are overbought but can stay that way during up trends. I believe that is the case at this point in time. But there is plenty of news to come later this week. I'm still looking for new all time highs in the S&P 500 before the years end. One of the indicators for GE today was solidly in the buy zone. That is why I put in the order for the January calls. I may have gotten too cute with the pricing though. What I mean is instead of buying the calls at what was offered, I was looking for a cheaper price. Hopefully GE will pull back again because the money has really come into this issue over the past month. There is no better sign of strength than that. The overseas markets were generally positive with the exceptions of France and Germany. Perhaps things will be on hold until the ECB announcement on Thursday. That's my guess for now. We'll see what tomorrow brings.