Monday, December 21, 2015
It was an up and down session but we moved higher in the last half hour to finished with a gain of 123 points on the Dow. The advance/declines were 2 to 1 positive and the volume was pretty good considering it's a holiday week. The summation index continues lower. Perhaps it can turn around this week but we will need to see more market strength for that to happen. My SPY January calls are solidly in the red. At least we didn't completely fall apart today but the week is young. Plenty of economic data due in the next couple of days. The market is still on shaky ground for now. GE was up 1/8 and the volume was light. Still waiting for a decent Bollinger band breakout from GE. Gold found buyers on a weaker US dollar. The precious metal futures rose a dozen on the session. The XAU was up 3/4 and GDX gained 1/4. Volume was average. Mentally I'm feeling OK. It was important for the major indices to hold up today and they did. There is a chance that Friday was simply option related with the blow out downside volume. If that is the case we can perhaps rally from here. But I'm not completely convinced yet. How the rest of the week shapes up is important. Things could still go either way. The foreign markets were generally weaker overnight. The next two days will probably tell the story for the week as the day before the Christmas holiday should be very slow. So we'll keep an eye on tonights developments and take it from there.