Wednesday, December 13, 2017
The beat goes on as the Dow rose 80 points on average volume. The advance/declines were positive. The summation index is trending sideways. Sideways movement usually precedes a drop in the summation index when it is in positive territory so we'll see what happens this time around. It could move sideways for weeks though. The Fed came and went. All went as expected. Retail sales tomorrow could be a catalyst. The market remains overbought with new all time highs on the Dow. The S&P was slightly negative today. But I don't see any reasons not to expect higher prices going forward. GE was off 15 cents and the volume was lighter. Still waiting on my open order for the January calls here to be filled. A bit more downside or time decay should do the trick. Gold was up $16 as the US dollar dropped today despite the rise in short term rates. I certainly cannot explain any of that. The XAU soared 3 points, while GDX gained 3/4. Volume picked up on the rise and that's bullish. One day doesn't make a trend however. Mentally I'm feeling OK. The Dow continues its climb towards 25000 and I'm guessing that we'll get there before the end of the year. The positive seasonal effect of December is in full swing. We are pretty far away from the 50 day moving average and that will have to correct itself eventually. But for now it's still up, up and away. The market can stay overbought for quite some time and we've definitely seen that a lot this year. Stay long, look for calls and enjoy the ride. Asia was mixed and Europe lower in last nights trade. We'll see what tomorrow brings.
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