Monday, December 18, 2017
A positive start to the week as the Dow gained 140 points on good volume. The advance/declines were better than 2 to 1 positive. The summation index is trying to head up but we'll need to see another day like today to really break the sideways mode. The NASDAQ did break the 7000 barrier during the session. Just waiting on Dow 25000 at this point, What happens after that is up for discussion but there remains no overhead resistance. We are getting further away from the 50 day moving average in several indexes. Not to mention the technical indicators are extremely overbought. So some type of pause or decline here is way overdue. GE was off a few cents and the volume was good. I adjusted my open order down a bit as the time decay for the January calls here is in effect. I'm still a believer in this idea but it may not be the best one. Gold was up $7 as the US dollar softened. The XAU rose 1 1/2, while GDX gained 1/3. Volume was light. Still no real interest in gold here. Mentally I'm feeling OK. The party rolls on for stocks with seemingly nothing standing in the way of even higher prices. You have to admit that if the tax bill passes corporate profits will indeed be going up. At the moment there are enough votes to pass the bill in the House and Senate. This is probably one of the reasons that stocks seem to simply be on fire. However we all know how parabolic advances end and it isn't pretty. But for now we'll just enjoy the ride. Europe and Asia were higher overnight. We'll see what happens tomorrow.
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