Monday, December 11, 2017
More of the same as the Dow added 56 points on light volume. The advance/declines were positive. The overall market was stronger than the Dow. The summation index is trying to turn back up. My guess is that it will as there is nothing standing in the way of higher prices. We'll get the Fed announcement on Wednesday and I don't see any surprises coming out of that. My idea of a decline here was wrong and the positive seasonality should kick in for the rest of the month as well. Unless we get something out of left field, look for the trend to continue higher. GE was off a few cents and the volume remains pretty good. My open order for the January calls is close to being filled. I'm leaving it out there but there's a strong chance that GE will simply trend sideways from here. That's the feeling I get when I look at the daily chart. The Bollinger bands are starting to get closer together and that's usually a sign of some type of decent move to come. We'll see. Gold fell $5 on the futures as the US dollar was flat. The XAU and GDX were little changed on average volume. The Fed raising interest rates isn't positive for gold. However the news has been already telegraphed and perhaps there won't be much of a reaction in gold when the announcement is made. Mentally I'm feeling OK. Options expiration week and the Fed. We should hit new intra-day highs at some point. Short term overbought, staying that way and it has been a broken record all year long with that mantra. It has to end at some point but I certainly don't know when that will be. Keep looking to the call side. Asia was higher and Europe lower with the exception of the FTSE. We'll keep an eye on the overnight developments.
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