Monday, February 27, 2017
Let's make it a dozen as the Dow rose for the twelfth day in a row. It gained 15 points on about average volume. The advance/declines were positive. The summation index is still moving up. The extreme overbought condition remains. I'm having trouble remembering anything like this in recent history. I won't try and step in front of this but I do still like the SPY March puts at some point. I'll continue to wait for some kind of negative divergence. We've got a Trump speech tomorrow night and that should get things moving one way or the other. The employment report is delayed a week for some reason so we won't have that to trade off of. GE was down 1/4 on light volume. The short term indicators are starting to roll over here. Gold reversed during the session and the futures fell $6. The dollar was flat. The gold shares had one day reversals to the down side. The XAU lost 4 1/8, while GDX shed 1 1/3. Volume was heavy. Perhaps gold knows something that we don't. Mentally I'm feeling OK. Still trying to remain patient here as we hit new all time highs every day. No overhead resistance either. I really don't know how long that this can last but it's usually much longer than you think. I do think that longer term we are in the last leg up for this lengthy bull market of 8 years. How far the leg goes is the question. or I could be wrong and we have much higher to go but I really don't think so. Straight lines up never end well. But there is no telling how long that line can be. We'll get the end of the month tomorrow and another look at GDP. Asia was lower and Europe higher overnight. We'll finish up the February trading tomorrow.