Thursday, December 29, 2016
Lackluster is the best way to describe todays market as the Dow fell 13 points on very light volume. The advance/declines were positive. The summation index did turn lower yesterday but the action there is better described as sideways for now. Not a lot of players and not a lot to write about either. There was some weakness about halfway through the session and I did purchase some SPY January calls. They are slightly in the black. This should be a less than 2 week trade time wise. If and when we move back to short term overbought, that will be the time to exit. I still think that we'll see Dow 20000 early in the new year. GE moved up a couple pennies and the volume remains very light. Gold found some interest on a lower US dollar. The futures rose $15. The XAU climbed 4 3/4, while GDX added 1 1/2. Volume was average. The gold shares remain in a downward channel but are trying to break it. Mentally I'm feeling OK. Just a day to go in 2016 and we will probably end on a quiet note. I expect even less traders tomorrow as we approach another long holiday weekend. Things should get going again on Tuesday. I'm expecting this SPY call trade to work out but the market will go where it wants. I still view the past couple of weeks as a consolidation and not a top. I could be wrong. So we'll see what happens. Europe and Asia were generally weaker overnight. We'll finish up the week and the year on Friday.