Tuesday, December 12, 2017
A mixed bag today but the Dow managed a gain of 118 points on average volume. The advance/declines were negative. The summation index is moving sideways. The overall market was weaker than the Dow today with the NASDAQ showing a loss. Waiting on the Fed tomorrow and I don't expect any surprises. The song remains the same with a new intra-day high for the Dow and the S&P 500 as well. Short term overbought and staying there. GE came to life today and was up 1/4 on good volume. My open order hasn't been filled but I'll be leaving it out there. I don't expect a rally here for GE. Perhaps some more tax loss selling before the end of the year. I would like to be in this trade before the end of the year. I expect that there will be some bargain buying or dogs of the Dow purchases at the beginning of 2018. Gold was little changed and the US dollar was a bit higher today. The XAU and GDX were little changed on average volume. Mentally I'm feeling OK. We are seeing the usual positive option expiration week bias so far. The technical condition of the market remains overbought. There are no negative divergences that I see at the moment. There is nothing standing in the way of higher prices. Asia was slightly lower and Europe had gains overnight. We'll see how things shape up with the Fed tomorrow.
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