Wednesday, October 04, 2017
A little bit higher today as the Dow added 20 points on light volume. The advance/declines were barely negative. The summation index continues higher. The rally lives on as we remain overbought and continue to stay that way. We are still way overdue for at least some profit taking but there is no overhead resistance. The shorts continue to get squeezed and that includes me. My SPY October call position is showing a loss. I'll probably get stopped out of this as well but it's my last attempt at this trade. The small losses begin to add up. GE dropped 1/3on average volume. Gold was up a couple bucks on the futures and the US dollar was a touch lower. The XAU and GDX had slight fractional gains on light volume. Mentally I'm feeling OK. It has been a pretty nice move higher and there is no end in sight right now. The VIX remains under 10. There are no sellers. Even the slightest daily decline has been bought. The RUT continues to lead the way higher although it was down very slightly today. Tomorrow should be a waiting game on the jobs report due Friday. I really don't see anything to stop the trend higher. My strategy to move up on the put strike prices was a failure. I actually could not have picked a worse time to do that. The market can remain overbought longer than you can remain solvent. Live and learn. I still think that this is a blow off top if you just look at the straight line up in RUT since the middle of August. It usually doesn't end well. We'll see what happens this time. Asia was higher and Europe mixed yesterday. We'll keep an eye on the overnight developments.
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