Tuesday, April 25, 2017
Up we go as the Dow roared ahead by 232 points on heavy volume. The advance/declines were 2 to 1 positive. the summation index is moving higher. We are on our way to new all time highs for the major indices in my opinion. I do think that you can just buy some index calls even though we're overbought. The market will most likely stay overbought as we trend higher. I'm thinking about placing an open order for some SPY calls tomorrow with a good until canceled stamp on the ticket. I would like to wait for a pullback but at this rate we won't see one. We'll get an outline of the Trump tax proposals tomorrow and that should provide more fuel for the rally. GE lost a dime on good volume. This stock certainly isn't participating in the rise. I'm not sure if that is a problem or not. Gold fell another dozen on the futures, with the dollar lower again as well. The XAU lost 3 and GDX dropped a point on very heavy volume. Poor earnings form ABX was the cause. Not to mention that the long term down trend line at $1300 turned down prices again for gold. We've entered the 5th year of the bear market for gold. Mentally I'm feeling OK. We closed above 6000 for the first time on the NASDAQ. RUT is trying to break out. The small stocks are leading the way and that is bullish. Plenty of time in the May option cycle for a call trade to still work despite the impressive run up of the past two sessions. Those are some of my thoughts on what is going on anyway. I haven't had a good handle on things lately but what we are seeing now looks a lot like the two run ups we've had after the US elections in November. The market took off each time and did not look back. I could be wrong but I still feel that calls will work for the May option cycle. Europe and Asia were both higher overnight but not as much as the US was today. We'll see what tomorrow brings.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment