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Wednesday, December 16, 2020

We got the Fed out of the way as the Dow fell 44 points on lighter volume. The advance/declines were negative. The summation index is beginning to track sideways. The overall market fared better than the Dow, with both the NASDAQ and the S&P 500 sporting gains. We had the usual hanging around before the Fed and then a move higher. The market did drop slightly into the close. No surprises from the Fed as it was business as usual. Retail sales did come in a bit light. The S&P 500 remians slightly overbought on a short term basis. Just a couple of trading days left in the week and I don't expect much except for most likely new all time highs. We'll see how things shake out before the December option expiration. GE was off over 1/8 but the volume was pretty light. Gold rallied after the Fed chairman spoke and the futures gained $10. The US dollar was slightly lower. The XAU rose 2 3/4, while GDX added 2/3. Volume was on the light side. I still have the open order out there for the GDX January calls but it appears that trade was missed. I'll probably cancel the order before the end of the week. Mentally I'm feeling OK. The VIX was lower which fits the overall market rise. The short term indicators here are now mixed with no good signal one way or the other. The market is still waiting on some kind of stimulus package before Christmas. That should provide some more upside if it ever comes to pass. The pandemic virus background remains along with the vaccine rollout. Next week is a holiday affair. Europe and Asia were both higher overnight anticipating the Fed. We'll keep an eye on the overnight developments.

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