Tuesday, July 12, 2016
Moving higher as the Dow gained 120 points on OK volume. The advance/declines were over 2 to 1 positive. The summation index is moving higher. There is no overhead resistance in the S&P 500. Very overbought now but that doesn't seem to matter at the moment. The Dow closed at a new all time high today as well. There was little on the news about the S&P 500 yesterday, so we will have to see what happens with the Dow today. When there isn't any major news coverage of the highest prices ever, we're heading higher. When the Dow is plastered on every front page and website, then we are at the top. I may have to reconsider my thinking on the SPY August/September puts. GE was up a nickel on good volume. Gold got whacked today and lost over $20 on the futures. The US dollar was slightly lower. The XAU lost 3 points, while GDX shed 1 1/4. Volume was good. Perhaps this is the start of the much needed rest in this area. One day does not make a trend but if the stock market continues to move up, the luster will start to come off of gold. Mentally I'm feeling OK. The positive expiration week bias seems to be taking hold this time around. It has been quite a run since the turnaround after the vote in England to leave the EU. In retrospect, it can be viewed as a final shake out in stocks before moving higher. I certainly did not see that coming. There's an extra week in the August option cycle so there is no rush to put a trade on. Once again patience will be required. Europe and Asia were both higher overnight again. The world is back to putting money into stocks. There is plenty of cash to go around as well. Perhaps this market will go quite higher than anyone thinks. We'll see.