Thursday, January 04, 2018
Dow 25000 has been achieved as we gained 152 points on good volume today. The advance/declines were positive. The summation index continues to trend higher. The overall market was weaker than the Dow but none of that seems to matter in this environment. Still overbought and that seems to be the norm from now on. We all know that will change, we just don't exactly know when. Those SPY January calls have all made quite a bit money. They'll probably make some more but I'll be waiting for some weakness before deciding whether to try that idea. GE was up over 1/3 and the volume remains heavy. We've made it to the 50 day moving average here and that would have been the target for that trade. Perhaps the GE calls can be purchased before the January expiration but it would be risky. The earnings are due out on expiration Friday. We'll see how things go from here. Gold was a bit higher today as the US dollar fell back again. The XAU and GDX had fractional gains on average volume. Mentally I'm feeling a bit tired. Quite a start to the new year as we are screaming ahead in an overbought technical condition. Anybody that has tried to get short has been squeezed relentlessly. There have been plenty of sell signals but none of them have amounted to anything. The drop last Friday was the perfect set up for the calls. If that wasn't some type of manipulation, I don't know what is. But nobody really cares as long as the market keeps going up. Either that or nobody is paying attention. I guess I'm just bitter because I wasn't astute enough to take advantage of it. It certainly doesn't matter now. We'll get the employment report tomorrow and the market reaction to it. At the rate we are going, no matter what the numbers it will be viewed as positive. New all time highs day after day with no overhead resistance. It is a bull market dream and probably has plenty of room to run. I do not think the general public has been sucked in yet. When they get here, it will be the end. Europe and Asia were both up overnight. We'll close out the first week of 2018 tomorrow.
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