Wednesday, June 17, 2015
We got the Fed out of the way and the market liked what it heard. The Dow rose 31 points on light volume. The advance/declines were slightly positive. We were higher during the session but it was a plus day. I'm still bullish here. Once we get Greece out of the way, I think we're heading to new all time highs. That should be resolved tomorrow but we'll see. I could be wrong but I think the summation index is about to turn around. The short term technicals for the major stock averages are mid-range. GE was up a nickel on good volume. The July calls here remain on the radar. Still waiting on an oversold condition for purchase. Gold got a bounce from the Fed as the US dollar dropped. The precious metal futures were down during the regular session but came back around $8 in the aftermarket. The XAU gained 1 1/2, while GDX rose 1/2 and the volume was good. Perhaps now is the time for the gold shares but we'll have to see how the rest of the week plays out. ABX had a solid gain on good volume. I'm not going to chase anything here, as going out to the October options gives us the benefit of time. If we have missed it we'll look for something else. Too early to tell. Mentally I'm feeling OK. It's possible that the market is still trying to sort things out here but I'm a believer in higher prices going forward. The TRAN did continue lower today though. If the current Greece problem isn't solved tomorrow, would that lead to a sell-off? Always questions in the game. Perhaps todays rally wasn't as robust due to the lingering uncertainty. But that's a guess as usual. With mid-range technical indicators we can't be certain about much. We also have the summer market conditions to deal with, which means less players and slower trading. That should probably kick in after this week. We'll watch the foreign action overnight and see if gold has any follow through to the upside. All eyes will be on the Greece and we'll watch the market reaction.
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