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Friday, November 17, 2017

There was no follow through to yesterdays bounce as the Dow fell 100 points on light volume.  The advance/declines were almost 2 to 1 positive though.  The summation index is trying to turn around here.  The overall market was stronger than the Dow.  We did not see the usual heavy expiration volume today and I have no explanation for that.  We will be moving into holiday mode for Thanksgiving week coming up.  I do not expect a lot of price movement in the coming trading days.  Basically I'm anticipating being on hold for a week.  We're still medium term overbought but could remain that way as we have for the past couple of months.  Earnings season is now over and I suppose that the market will now focus on the tax deal.  That's my guess for now.  GE was off a few cents and the volume remains pretty heavy.  I'm leaving in the open order for the January calls here.  Gold caught a bid as the futures rose $16.  The US dollar was a bit weaker.  The XAU and GDX had minor gains on better volume.  But there's still no real interest her in my mind.  Mentally I'm feeling tired, did not sleep well.  The market hasn't just gone straight up for the past couple of weeks but I do not think that it is a change to the upside prognosis.  I'm still a believer that this is a pause before we go to new all time highs before the end of the year.  The recent weakness in the TRAN along with the RUT have not manifested itself with a drop in the overall market.  Those two indices are often leaders but that hasn't happened in this case.  The fact that the other small stock indexes are practically at all time highs strengthens the case for a positive outcome to the recent market sideways to lower action.  I'm thinking perhaps SPY calls in the future but will let next week pass at the least.  Asia was higher and Europe lower last night.  It's Friday afternoon and time for a break. 

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