Wednesday, November 23, 2016
Still moving higher as the Dow gained 59 points on light volume. The advance/declines were barely positive. The summation index is moving up. The overall market was weaker than the Dow, with the NASDAQ lower on the session. But as I said before, it won't matter because we are on a ride to higher prices. Still overbought on the short term indicators with no signs of rolling over. It's a holiday week rally and there is no overhead resistance for the Dow and S&P. GE was up over 1/8 on light volume. The same overbought conditions are in place here. Gold fell below the $1200 level as the futures dropped over twenty bucks. The US dollar was higher. The XAU lost 3 points and GDX shed a point. Volume was heavy. It appears the theme since the US election has been dump gold and bonds. At the same time buy stocks and the US dollar. Mentally I'm feeling OK. No break in the rally and the idea for getting some SPY December calls seems as though its time has passed. No point in chasing this rally now. Perhaps the best idea is to take a break now that Thanksgiving is here. Friday will be a light volume shortened session that will probably have an upward bias. There will still be 3 weeks to go in the December option cycle when things return to normal on Monday. Asia was slightly higher and Europe slightly lower overnight. Have a Happy Thanksgiving everyone.