Wednesday, December 21, 2016
A bump in the road on the way to Dow 20000 as the most watched index shed 32 points on very light volume. The advance/declines were slightly negative. The summation index is moving up. Not to worry here as we are in the very favorable seasonal time period. Plenty of economic data due tomorrow and that should propel us the promised land. That's my best guess for today. Not a lot of players here today and that may be the case for the rest of the year. Still overbought for the major stock indices and that hasn't changed for weeks. I am looking at the January SPY calls but cannot purchase them unless we see some downside to relieve the overbought condition. Doubtful. GE was off 1/8 and the volume was light. Gold was little changed and the US dollar was a bit lower. The XAU and GDX had very slight fractional losses on extremely light volume. Apparently nobody felt like buying or selling today. Mentally I'm feeling OK. Two days to go before a long holiday weekend and todays lack of activity tells me that perhaps traders have already packed it in for the week. This really isn't the kind of market that you like to trade as it is listless at the moment. Tomorrow could bring the awaited 20000 but it probably won't have much volume behind it. I'd prefer to see some weakness to get long but it isn't that time of year. Perhaps if we run to 20000, I can start to look the other way. But let's not get ahead of ourselves. More likely it is a time to be patient. Asia was mixed and Europe higher but the moves were slight either way. We'll watch the world overnight and see how things go tomorrow.