Monday, November 21, 2016
Onward and upward as the stock market rally continues. The Dow rose 88 points on average volume. The advance/declines were 3 to 1 positive. The summation index is moving up. Overbought, staying there and hitting new all time highs as we go. The stock market remains strong and there is no pullback to get long. The fact that hitting new all time highs isn't even press worthy lets you know there is plenty of room to go on the upside. I'm still looking at the SPY December calls if I get the chance. Doubtful at this point. GE was up 20 cents on light volume. Gold was up $3 on the futures as the US dollar was lower for a change. The XAU added 1 3/4, while GDX gained 3/8. Volume was light. The gold shares continue in the down trend that began in August. Mentally I'm feeling OK. A holiday week and buying is in vogue. There is no overhead resistance. We're over extended any way you measure it. I certainly don't want to chase things here but what can you do? I'm probably going to let this week pass unless we get a sharp drop, which I don't expect. We should drift higher into Thanksgiving and then add a bit on the short Friday session. Money is flowing into stocks. We don't need to know the reasons we just need to pay attention and attempt to profit from it. Europe and Asia were generally higher overnight. I don't expect much volatility leading into the holiday. We'll be watching things as usual though.