Tuesday, November 22, 2016
Up and away we continue to go as the Dow gained 67 points on good volume. The advance/declines were over 2 to 1 positive. The summation index is heading higher. There is nothing to stop this incredible rally that began the day after the US election. The overall market was a bit weaker than the Dow but that won't matter. We closed above a couple of milestones. 19000 for the Dow and 2200 for the S&P 500. Tomorrow should be a get away day before the Thanksgiving holiday. GE was up 1/3 on light volume. Overbought and staying there remains the theme here. Gold was up a couple bucks on the futures and the US dollar was a bit higher as well. The XAU and GDX were slightly higher on very light volume. I do not see any imminent rally for the precious metals complex. Sideways is the most we can hope for here. Mentally I'm feeling OK. At the rate we are going, there won't be a chance for the SPY December calls. I do not want to chase this rally at this point. Patience is required but we must be open to the possibility that we are waiting for an opportunity that will never arrive. The next trade could wind up being in the opposite direction. For now we'll wait and see if we get any kind of return for the technical indicators to at least mid-range. Or a move towards the 50 day moving average at the very least. Price and importantly volume tell you that the move up is for real. It is much easier of course to trade with the trend. Whether or not we get a chance to is the question. Europe and Asia were both higher overnight. Expect a muted session tomorrow.