Friday, September 15, 2017
The beat goes on as the Dow added 64 points on expiration heavy volume. The advance/declines were decidedly positive. The summation index continues higher. Some indices are breaking out to new all time highs and the small stocks look to be on the verge of doing so. The short term technical indicators remain overbought. It appears as though there isn't anything in the way of higher prices. I'm still looking at the SPY October puts but I don't want to be married to this idea. We are in a seasonally weak time period but that hasn't meant anything yet. GE lost about a dime on heavy volume. Gold shed $5 despite another threat from North Korea. The US dollar was a bit lower. The XAU and GDX had fractional losses on light volume. Getting short term oversold for the gold shares. Mentally I'm feeling OK. I guess how high will we go here is the question. An extra week on the October options, so the premiums are pricey. It would be hard for me to go long here because we're already very short term overbought and have stayed that way. However there could be another short squeeze on the way and I would not like to be stuck in that. We've got the Fed next week and it may be tough to take a position ahead of that as well. I'm going to have to reassess my ideas at the moment and try to come up with a viable game plan. There is really no way to tell how much longer the market will climb but it certainly won't last forever. Todays positive action could also just have been expiration related as well. I'll have plenty to think about over the next couple of days. I'll go over all the charts and try to figure out what to do. Asia up and Europe down in last nights trade. It's Friday afternoon nearing the end of summer and time for a break.
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