Wednesday, November 01, 2017
More drift higher as the Dow gained 57 points on good volume. The advance/declines were slightly positive. The summation index is still trending lower. The small stocks were under performers today. The economic data released was mixed. There were no surprises from the Fed. We'll get Trumps pick for the new Fed head tomorrow. The big cap indices remain short term overbought. The small stocks are as well with the exception of the RUT. I'm still on the sidelines for trading the SPY for now. GE was off another 1/8 or so and the volume remains extremely heavy. Very oversold here and staying that way. Waiting on the dividend cut. Gold rose $5 on the futures and the US dollar had a gain as well. The XAU and GDX finished little changed on light volume. Mentally I'm feeling OK. The Bollinger bands have tightened dramatically on the NYA which implies a big move coming one way or the other. The short term technical indicators here appear to be turning up. The implication is that we will see another leg higher for the rally that has lasted all year already. The Bollinger bands are tightening on the RUT as well. So I think we're about to see something in the market but I cannot predict which way things will go. Perhaps the employment report will be the catalyst. There was a terrorist attack in NYC yesterday and the market appears to have shrugged it off. Like all bad news this year, the market just isn't affected. We'll see how long this will last. The story tomorrow should be the announcement of the new Fed chair. Europe and Asia were generally higher overnight. We'll see what tomorrow brings.
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