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Wednesday, January 04, 2017

Continuing higher as the Dow rose 60 points on average volume.  The advance/declines were about 6 to 1 positive.  The summation index is moving up.  Once again the overall market was stronger than the Dow.  Add in the very positive breadth and we have the making of a run past the promised 20000 level.  Perhaps the employment report on Friday will be the catalyst for that.  Just a guess but the technical picture has improved in the first couple of sessions in the new year.  Unless there is some kind of drastic change in the picture, we're going higher.  My SPY January calls are still in the black.  I'm looking for the S&P to reach the 2300 level before expiration.  That's the idea for now.  GE was flat on the session and the volume was very light.  Gold was up a couple bucks which wasn't much considering the decent drop in the US dollar.  The XAU added 1 1/3, while GDX was up almost a 1/4.  Volume was pretty light here though.  Mentally I'm feeling OK.  The economic data combined with the Fed minutes weren't any factor in todays trading.  My thinking is that tomorrow could see some weakness ahead of the jobs report but that's a guess as usual.  The market is acting pretty good here in my opinion but we all know that could change on a dime.  The short term technical indicators are approaching overbought territory but aren't completely there yet.  The small stocks are leading the way here and that's a plus.  If we can get through the 2275 level on the S&P there will be no overhead resistance again.  Hasn't happened yet.  For now the idea is to hold onto the SPY calls until at least next week.  Japan was higher overnight but the rest of Asia and Europe were barely changed.  We'll see how things go tomorrow.

1 comment:

Unknown said...

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