Wednesday, March 01, 2017
A blast off higher today as the Dow roared ahead by 303 points on heavy volume. The advance/declines were 2 to 1 positive. The summation index should be moving back up. Trump sounded like a president but didn't really say anything. It didn't matter. The market took off like a rocket. This is a freight train running loose that you don't want to step in front of. Extremely overbought and moving in a straight line. This will not end well but who knows where the end is? Today squeezed all the rest of the shorts ahead of Trumps address to congress. I'm not sure where we go from here but I'll continue to look at the SPY March puts. GE was up 3/8 on good volume. Gold was off a few bucks on the futures as the US dollar rallied. The XAU and GDX had slight fractional gains on average volume. I still think that the fundamentals for gold are negative. Mentally I'm feeling OK. We just rose over 1000 points in a month. This is amazing in itself. It has the feel of a blow off top but we'll only know that in hindsight. The market can stay overbought longer than you can stay solvent, or so I've heard. I'm still waiting for a negative divergence that may never occur at this rate. It is virtually impossible for me to buy calls here because the technical indicators remain out of whack. So I'll simply have to wait until I see something worth making a trade on. Still plenty of time in the March option cycle. The VIX has room to move down on the short term indicators so even some more upside from here isn't out of the question. We'll see. Europe and Asia were both higher in yesterdays trade. I'm not sure what we'll see tomorrow but these are very interesting times.