Monday, October 16, 2017
More of the same today as the Dow gained 85 points on light volume. The advance/declines were barely negative. The summation index continues to trend sideways. Overbought, upward bias and no overhead resistance. I keep repeating myself but the conditions have remained this way for weeks on end. I still believe that we're in the midst of a blow off top that will eventually reverse and the decline should be swift. But as to when this occurs is anyones guess. Earnings season is upon us and that will probably be the market mover going forward. GE was up 1/3 or so on heavy volume. We'll get the earnings here on Friday. Gold dropped $7 on the futures as the US dollar was a bit higher. The XAU fell 1 1/8, while GDX lost 1/3. Volume was average. Mentally I'm feeling OK. Option expiration week is here and we're already seeing the usual positive bias. It appears that there's nothing that will derail this rally right now. It has shook off whatever bad news that has come up and there are no sellers. So we'll enjoy the ride for now. We'll get the Feds beige book on Wednesday but otherwise it's a light week for data. Asia was higher and Europe mixed overnight. We'll keep an eye on tonights developments.
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