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Friday, December 15, 2017

Record highs abound as the Dow gained 143 points on extremely heavy expiration volume.  The advance/declines were 2 to 1 positive.  The summation index is still trending sideways.  It's a march to 25000 for the Dow in my opinion.  Overbought, staying there and what more can I say?  There are no sellers and when they do arrive buyers aren't far behind.  We are living in a huge bull run.  I can't say when it will end.  We are extended any way you look at it but it simply hasn't mattered.  Only something out of the blue can derail this thing.  If the tax bill succeeds corporate profits will rise.  That can only mean higher stock prices.  Stay long and look for calls.  GE was up 18 cents on heavy volume.  I'm still waiting for my open order to be filled here.  If it isn't done by the end of the year, I'll be canceling this trade.  I do expect some buying in GE at the beginning of the new year.  Gold was up a buck or so but did finish off of its highs.  The US dollar was a bit higher.  The XAU and GDX were little changed on light volume.  Obviously no interest here.  The fundamentals for gold are still negative in my opinion.  Mentally I'm feeling OK.  Enjoy the ride as prices trend higher.  We really need to see some type of breather because things are getting pretty far from the 50 day moving average.  I don't mean a day or so of lower prices like we saw this week.  I mean something in the 3% to 5% range that we haven't even seen this year.  That would make for a more healthy run.  Because we are starting to look like we want to head straight up.  Perhaps that would get us to 25000 but it would not look pretty when it drops.  Parabolic moves always end badly.  We're not there yet but it is a possibility.  Perhaps the market will take a rest after the tax bill vote but that remains to be seen.  Moving into the January option cycle and it has an extra week in it and the holidays as well.  Premiums are a bit high for now.  I don't have any SPY trades in the works at the moment.  I'll wait to see what happens with the GE January call open order and go from there.  I'll be checking the charts out over the weekend as usual and looking for the next trade.  Asia was lower and Europe mixed to finish off the week.  It's Friday afternoon and time for a break.

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