Tuesday, July 25, 2017
Earnings drove the market higher today as the Dow rose 100 points on good volume. The advance/declines were positive. The summation index continues to trend higher. The overall market was weaker than the Dow today. New all time highs for many of the major stock indices. You cannot argue with price. Overbought and staying there. GE was up a penny on pretty good volume. Gold dropped $4 on the futures as the US dollar was little changed. The XAU added 1 2/3, while GDX was up 1/4. Volume was light. Good earnings from NEM was the catalyst for the gold shares. ABX made a comeback as well. We await the earnings there after the bell tomorrow. Mentally I'm feeling OK. The VIX is at low levels that haven't been seen in years. Todays heavier than usual volume for the market is either the beginning of a blow off to the upside or then end of this two week rally. That's my guess at the moment. We'll get the Fed out of the way tomorrow but we seem to be in an earnings driven environment for the time being. And earnings are looking pretty good so far. GOOG disappointed and there could be a double top put in there on the daily chart. MMM had a huge gap down as well. But the stocks that had good reports drove things higher for the most part. We'll see if that continues and it is looking like it probably will. Asia was mostly lower and Europe higher in last nights trading. We'll see what the Fed has to say tomorrow. I don't expect any surprises.