Thursday, October 19, 2017
The market opened 100 points lower today and fought all the way back. The Dow rose 5 points on light volume. The advance/declines were barely higher. The summation index continues in a sideways direction. This seems to be a market that just does not want to go down. The selling was met with plenty of buying. I can't explain it but you cannot fight it. We'll just have to see how high we go here before the inevitable drop. There's still no overhead resistance and there's still no end in sight. GE was up about 1/2 on very heavy volume. Perhaps somebody knows about the earnings ahead of time. I still think GE is a good candidate for the longer term calls. Gold was up $8 as the US dollar was lower. The XAU and GDX had slight fractional gains on light volume. Mentally I'm feeling OK. It's been quite a run for stocks as we've been overbought for weeks. The technical indicators are as blown out as I can remember seeing. Just as things got out of control years ago with the huge decline, we are seeing the opposite today. And the rallies usually last longer than the declines. So I don't exactly know how high we're going to go here. But it won't be pretty when it ends. I really don't think that the market has even sucked in the public yet. We'll see how the expiration goes tomorrow. Asia was mixed, with the Hang Seng getting clobbered. Europe was lower. We'll close out the trading week tomorrow.
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