Thursday, January 05, 2017
A pause before the employment report as the Dow fell 42 points on average volume. The advance/declines were negative. The summation index is still moving higher. A mixed bag today as the NASDAQ was higher. The major indices are stalling here at the near term resistance. If we can get through there will be more price gains ahead as there will be no overhead resistance. I do expect that we'll move higher. The small stocks continue to be acting relatively better. My SPY January calls are still in the black. GE was off about 20 cents on light volume. Gold found buyers as the futures rose $16 on a much weaker US dollar. The XAU was up 4 1/2, while GDX climbed 1 1/4. Volume was good. The gold share indexes have just broken the daily down trend line that began back in August. That is a positive. The fundamentals remain bearish for gold in my opinion but perhaps that is changing. Mentally I'm feeling OK. Maybe tomorrows jobs numbers can get things moving higher again. On the short term we are more overbought than oversold at the moment. The Bollinger bands are also contracting now which implies some real movement one way or the other in the near future. We've had a positive start to the year so far and we'll see if that can continue. Plenty of time left in the January option cycle, with about 2 weeks to go. Asia was mixed overnight, while Europe had little price change again. We'll see how the market reacts to tomorrows data.
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