Monday, July 18, 2016
A quiet summer Monday as the Dow gained 16 points on very light volume. The advance/declines were positive. The summation index continues to the upside. The overall market was stronger than the Dow. No change in the overbought technical condition. I suspect that we will simply grind our way higher in the near term. Earnings will provide the excuse for either direction. Plenty of time in the August option cycle, so I'll be patient for now. GE was basically flat and the volume was lighter. Waiting on Fridays numbers here. Gold futures were flat as was the US dollar. The XAU and GDX had fractional gains on light volume. Still overdue for a rest in the gold shares in my opinion. Mentally I'm feeling OK. Not a lot of economic data out this week, mostly housing numbers. So it should be a quiet time. The market has done pretty good despite the worldwide turmoil. That is bullish. The media hasn't jumped on the new all time high bandwagon. That is bullish as well. Although the market is overbought, it can stay that way for an extended time during upturns. That is what we are seeing right now. Foreign markets were mixed overnight. We'll keep an eye on overnight developments.