Monday, June 19, 2017
The strength showed up today as the Dow climbed 144 points on light volume. The advance/declines were shy of 2 to 1 positive. The summation index should be moving back up. Still overbought and staying there for the big caps. The small caps are coming off of their oversold readings. Interesting how the market just happens to climb after the June expiration has passed. Never under estimate the market makers in this game. They'll do what they have to and keep the profits rolling. New all time highs for the Dow and the S&P. Perhaps this is the beginning of the summer rally. Just a guess on my part. GE was off 20 cents on lighter volume. Stalling at resistance here. Gold dropped over $10 on the futures as the US dollar was higher. The XAU and GDX had slight fractional losses on light volume. I still favor the longer term gold share calls as a trade within the next few weeks. Mentally I'm feeling OK. Plenty of time in the July option cycle for a trade. It is just a matter of getting a decent signal as always. No hurry here as I'll simply have to wait for something to develop. Not a lot of economic data to trade off of this week. There is no overhead resistance for the S&P 500 but we will not stay overbought forever. Europe and Asia were both higher overnight as money is flowing into stocks around the globe. We'll keep an eye on the developments this evening.