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Monday, December 16, 2019

Perhaps it was a delayed reaction to the US/China trade deal but the Dow rose 100 points on heavy volume.  The advance/declines were 2 to 1 positive.  The summation index is moving higher.  The Dow was up 200 points during the session, so that got cut in half.  It's options expiration week ahead of a holiday week.  Any trading business that needs to be done will most likely happen in the next 4 days.  We are short term overbought but the overall market is much stronger than the Dow here and that's a plus.  New all time highs for many stock indices as there is no overhead resistance.  That doesn't mean that we'll simply go straight up but the path of least resistance is higher.  GE was off over 1/8 and the volume was good.  Gold was flat on the session, while the US dollar was slightly lower.  The XAU lost a point and GDX was down 1/3.  Volume was light.  The short term technical indicators for the gold shares appear to be rolling over here.  Mentally I'm feeling OK.  The VIX is back around 12 and getting oversold.  You've got to expect higher prices here as most of the uncertainty is now out of the way.  The market still has the impending impeachment to deal with but for now it seems like that will be a non event.  I don't have any SPY trades in mind at the moment.  I'm still considering the GDX calls if we roll over here but will most likely go out to the February option cycle if I do.  Europe was higher and Asia mixed in last nights trade.  We'll see how tomorrow goes.

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