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Wednesday, January 03, 2018

More of the same in the march to 25000 as the Dow gained 98 points on average volume.  The advance/declines were positive.  The summation index continues its grind higher.  Once again the overall market was stronger than the Dow.  There's no overhead resistance and apparently nothing in the way of higher prices.  Too late for the January SPY calls unless we see a pullback but I don't expect one anytime soon.  I'm not sure what the next trade will be.  GE continued higher as well and was up 17 cents.  Volume was pretty heavy again and it was the most active issue on the big board again.  I am still kicking myself for not getting into that trade.  It's like they're giving away money if you are a savvy enough trader.  Gold was flat on the futures as the US dollar had a bounce.  The XAU fell a point and GDX shed 1/4 on good volume.  I'm not sure what's next for the gold shares but they are short term overbought.  Mentally I'm doing OK.  The beige book came and went and the next potential mover is the jobs report on Friday.  I don't have anything in mind for that.  The VIX has moved back down to the lower end of its trend channel and might need to take a pause here.  But the fact of the matter is that all major stock indices are setting new all time highs and we are on an incredible bull run.  There isn't anything that I can see that is in the way of simply continuing to go up.  Overbought and staying that way was the mantra for 2017 and 2018 is starting out the same way.  We're once again pretty far from the 50 day moving averages for many major stock indices.  That condition hasn't led to any sustained declines for months.  We'll simply have to continue to sit back and enjoy the ride.  Asia was generally higher and Europe was up as well.  We'll see what tomorrow brings. 

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