Thursday, November 10, 2016
The rally continued for the big caps as the Dow added another 218 points on extremely heavy volume. The advance/declines were lower though and the NASDAQ was lower. The summation index is still trying to turn around. The overall market was much weaker than the Dow and that is usually not a positive sign. However with the volume expanding to the upside in such a big way, I still think that we're going higher before expiration next week. The Dow is at a new all time high and I would expect at least the S&P 500 to do the same. Longer term, it isn't usually bullish when you have the Dow leading the way. But all we need is the summation index to start moving up and we'll see higher prices on all the major averages. GE gained 3/4 on more than double normal volume. And it was higher than that during the session. I'm still considering the January calls here on a pullback if we get one. Gold was off about $10 on the futures as the US dollar continues to climb. The XAU dropped 6 points, while GDX shed 1 7/8. Volume was extremely heavy. The higher dollar along with higher interest rates makes gold unattractive at the moment. Mentally I'm feeling OK. I did put in a limit order to sell my SPY November calls but it wasn't filled. Close but it didn't happen. At this point it appears that I'll hang on to them until next week. They are in the black and unless we see some extended decline in the next 6 days, this trade will turn a profit. Money is pouring into US stocks right now and we are just getting to short term overbought. Another plus day tomorrow and we'll be there. Friday is a partial US holiday, with the bond market closed. Perhaps the stock market will quiet down for a day. Any declines can be bought in my opinion. Asia was higher and Europe lower overnight. We'll finish up a crazy market week tomorrow.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment