Tuesday, December 22, 2015
Heading higher as the Dow rose 165 points on average volume. The advance/declines were 3 to 1 positive. This should turn the summation index back up. It appears that disaster has been averted for now. Perhaps we are getting an early Santa Claus rally. Whatever the case, we'll take it for now. The TRAN had a good day as well. Not all of the short term technical indicators have turned around though. GE was up almost a dime but the volume is lighter than it has been. I'm not sure if the January calls are still on my wish list. GE has been moving sideways for a month and a half. Gold fell 8 bucks on the futures despite another lower session for the US dollar. The XAU and GDX were pretty much flat on very light volume. There doesn't appear to be any reason to buy gold right now. Mentally I'm feeling OK. The market is trying to hold up here and for now we'll give it the benefit of the doubt. However the market always goes where it wants to. My SPY January calls are still solidly in the red. That's what happens with lousy entry timing. Even a couple strong days in your favor don't do much for your trade. The only plus here is that there is plenty of time for this trade to possibly work. I am planning on holding this trade until the first trading day of the new year. The ideal scenario would be to have a rally into that day. The S&P 500 began the year at 2058. I'm thinking that the powers that be would like to keep the year ending in 5 winning streak intact. A close above that level will ensure that the streak stays alive. Now that is all simply a guess on my part. We'll see how it plays out. Tomorrow should be the last major trading day of the week. The market will close early on Christmas Eve day. As always we'll be watching the overseas markets tonight.