Tuesday, November 08, 2016
Still moving higher today as the Dow rose 73 points on good volume. The advance/declines were positive. The summation index is still trying to turn around. We'll get the election results tonight and go from there. The market is still not short term overbought yet. My SPY November calls are still in the black. I'll seriously be thinking about selling them if we get follow through upside tomorrow morning. But I do think that this is the start of a longer term move higher. If we can get the summation index turned back up, that would strengthen the rally theory. The VIX has room to move lower as well. GE was up 1/8 on OK volume. We've made it back to the 50 day moving average here. Gold was off $4 on the futures and the US dollar was higher as well. The XAU and GDX had slight fractional moves one way or the other. Volume was average. Mentally I'm feeling OK. With most of the earnings out of the way and the election season in the rear view mirror, what will be moving the market next? That will the question on traders minds and I certainly don't have the answer. I do know that the summation index is poised to turn back up and that would lead to a sustained move higher. Hasn't happened yet but I do think that it will. I think that with 9 days in a row lower for the S&P, the market pretty much sold itself out for the short term. Unless there is a Trump upset victory tonight, we're going higher and to new all time highs before the year is out. That's nothing that anybody is talking about now and the market likes to do what is least expected at times. This could be one of those times. Europe and Asia were generally higher but not significantly. We'll see what tomorrow brings.