Friday, November 10, 2017
Another attempt at a sell off but the Dow fought back again. The most watched index finished with a loss of 39 points on average volume. The advance/declines were negative. The summation index is still heading lower. This is looking more and more like a sideways consolidation before we move to new all time highs again. The short term technical indicators have rolled over for the S&P but it looks like they want to turn back up again. It has been an incredibly resilient market. The weakness in the RUT and TRAN haven't meant anything here yet. The trend remains higher for the major stock indices. GE came to life a day ahead of what should be a dividend cut at their shareholders meeting on Monday. It gained fifty cents on very heavy volume. Perhaps all the bad news has been filtered into the stock but we'll know more on Monday. I will be looking to purchase some January calls there if it starts to head south. Gold lost a little over ten bucks today despite a slight drop in the US dollar. The XAU was down 1/4, while GDX shed about 1/3. Volume was light. Oversold here but still no love for the gold shares. Mentally I'm still tired and ill so that's not the best combination for trying to play the game. If the RUT and TRAN are going to lead things here, I would have expected to see more of a decline this week. Some of the major stock averages were negative but not by much. It still has the look and feel to me as a pause before we move higher. The VIX did move up slightly this week but evidently not enough to have a legitimate decline. We'll see how things play out going forward. The market is somewhat focused on the Trump tax plan but that has yet to finalize the details. Unless we get some kind of external shock out of nowhere, I'm still looking for higher prices. Just waiting for whatever news comes out of the GE shareholders meeting on Monday to decide what to do about initiating a trade there. This may not be the best idea either as there will probably be some tax loss selling in December. I'll consider the possibilities over the weekend if I'm feeling up to it. Europe and Asia were lower last night. It's Friday afternoon and I need some rest.
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