Tuesday, December 27, 2016
Back to work for some as the Dow rose 11 points on extremely light volume. The advance/declines were positive. The summation index is trying to move higher. Still plenty of players on vacation as we look to close out the trading year of 2016. Nothing has changed as the major stock indexes remain short term overbought. I'm still waiting for some kind of pullback to get long the SPY January calls. A short trading week upon us but there is still plenty of time in the January option cycle to make something happen. GE up a couple pennies on very light volume. Gold was up $6 on the futures but was higher during the day. The US dollar barely moved. The XAU rose 1 3/4, while GDX gained 1/2. Volume was light. Mentally I'm feeling OK. The market took off in the first half hour and steadily eroded from there. I'm not sure what to make of that but we are in a very thinly traded environment. Probably the best thing to do here is let this week pass and take it from there. We should get a bump up in the beginning of the year due to seasonal money flows. However we all know what happened at the beginning of last year. So we'll wait for some kind of signal and take it from there. The market will not remain overbought forever. Europe was generally higher and Asia generally lower overnight but both suffered from the same lack of interest as seen in the US today. Perhaps this will be a boring week. We'll see if we get some more players back tomorrow.