Thursday, December 08, 2016
The beat goes on as the Dow added 65 points on good volume. The advance/declines were positive. The summation index continues higher. At this point you have to begin to wonder just how long this will continue. All the short term technical indicators are very overbought without any relief. Plus they have stayed that way for weeks. It's as if the indicators don't matter anymore. It is simply buy, buy, buy. Day after day. Perhaps we'll just keep running up into the option expiration but that isn't until next week. I'd like to try the SPY December puts for a short term trade but at this rate, there is no way to find the proper entry point. GE was off a few cents and the volume was average. Gold was flat on the futures despite a decent gain for the US dollar. The XAU and GDX were flat on very light volume. Mentally I'm feeling OK. The ECB extended its bond purchase program but at a lower rate. The stock market shrugged. It is a runaway freight train for US stocks at the moment. No sellers or overhead resistance. I certainly don't know how long this will last. The VIX has risen the past couple of days but stocks have surged anyway. Part of me wants to just get some SPY calls but there is no technical justification to do so right now. I can make a case for the SPY puts but only if we get some kind of negative divergence in the indicators. Hasn't happened yet. So patience is advised for now. Europe and Asia were generally higher overnight. We'll finish out the week tomorrow.