Wednesday, May 25, 2016
Continuing higher as the Dow climbed 145 points on light volume. The advance/declines were 2 to 1 positive. The summation index is now heading higher. We're heading higher from here in my mind and SPY calls can be purchased if we get a pullback. Perhaps we'll see new all time highs soon. The perfect head and shoulders top on the S&P 500 failed to live up to expectations and that pattern is now negated. The market will always do what is least expected and frustrates the most participants. That is the nature of the game. GE was up 1/4 and the volume remains light. Still below the 50 day moving average here. Gold was off $5 and the US dollar was a bit lower as well. The XAU gained 2 points, while GDX added 1/2. Volume was average. Trying to hold the 50 day moving average in the gold shares. Mentally I'm feeling OK. 2 days remain in this week and it precedes a holiday weekend. I'd like to see some kind of snap back to the short term downtrend line that was just broken in the major averages. But at this juncture it appears that we will simply head higher. We are approaching short term overbought on some of the technical indicators. But remember that in up trends the market can remain overbought for quite a while. We've got Yellen from the Fed speaking on Friday and that could be a market mover. The small stocks didn't have the leadership that we've seen lately so perhaps some near term weakness is near. That's a guess as usual. The best time for getting long the June option cycle has passed. However we may get another opportunity if the market cooperates. Time will tell on that. Stocks around the globe were higher as money is now flowing into those assets. The only caveat here is volume as it certainly has been anything but robust. Light volume rallies are not to be trusted. But as long as price heads higher we'll have to give it the benefit of the doubt. For now. We'll watch the overnight action and go from there.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment