Wednesday, December 23, 2015
More holiday upside as the Dow gained 185 points on average volume. The advance/declines were 6 to 1 positive. The summation index is moving higher. That is now 3 days of triple digit gains for the Dow and that cannot be ignored. The short term indicators have now all turned around. We're not overbought yet so there's even more room to head higher. It looks like the market got a head start on the Santa Claus rally. My SPY January calls are still losers. GE was up 1/2 on what passes for light volume these days. Once again trying to break out of the top of the Bollinger bands. We'll see if it makes it this time around. Gold was flat on the day while the US dollar was bit higher. The XAU rose 1 1/3 and GDX was up 1/4. Volume was light. Mentally I'm feeling OK. It appears that we're seeing a year end rally here as the major averages try to finish the year in the black. The Dow is still a little over a couple of hundred points shy of break even. We at least did not break down this week and that is a plus. The TRAN has had a good week as well and that is positive. Tomorrow should be a very quiet, light volume, short trading session holiday affair. The major players have already taken care of business for the year. Unless there is some major unexpected news event, we should finish off the trading week with a yawn. We'll keep an eye on things overnight.