Wednesday, October 07, 2015
Continuing higher as the Dow gained 122 points on very heavy volume. The advance/declines were 3 to 1 positive. The summation index continues higher as well. We are going up. Declines, if there are any, can be bought. We may just move straight up, which I was afraid of because there won't be an opportunity to purchase the SPY October calls on weakness. And so it goes. Overbought and staying there for the major stock indices. Obviously I should have simply held on to the SPY calls that I had. But looking backwards does you no good. GE up another 1/2 and the volume remains heavy. We should hit new highs for the year on GE if this pace keeps up. GE is leading the way and that's bullish for now. Gold was off a couple bucks on the futures as the US dollar was slightly higher. The XAU was fractionally higher, with the GDX little changed. Volume shrunk here. No trades in the gold shares for now. Mentally I'm feeling OK. The S&P 500 has made it back to the 50 day moving average. So have some of the other major stock indexes. With the overbought conditions, I would at least expect some type of pause here. But who knows? We may just keep shooting higher. Only seven days left in the October option cycle. There will have to be a pretty good set up to try and attempt a trade now. I do think that going out to November is an option because this rally is for real in my opinion. Gold has made it back to resistance at $1150. We will have to see what happens here. No overbought for gold, so maybe there is a chance that we'll break through. We'll watch the overseas markets overnight to see if they follow the Dow higher.
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