Tuesday, August 21, 2018
Higher today but we did finish well off of the best levels from the session. The Dow added 63 points on light volume. The advance/declines were about 2 to 1 positive. The summation index is moving up. The S&P 500 got oh so close to setting a new all time high but backed off. RUT did manage to make it past 1700 and on to a new high. The TRAN set a new all time high as well at the close. That bodes well for the advance in the overall market to continue. The VIX turned around today though and that will be something to keep an eye on. I adjusted my open order for the SPY September puts up another strike price. It is also possible that today was the price top and we simply head lower from here but I also think that we'll try to hit new highs in the S&P again in the September option cycle. I could be wrong. GE came to life and gained 1/3 on OK volume. Gold was higher and made it back to $1200 on the futures as the US dollar continues to drop. The XAU and GDX again had slight fractional gains, this time on light volume. Gold has had a nice bounce but the gold shares are not following. That isn't a positive sign. Mentally I'm feeling OK. Interesting price action today as we had a good rally going but it stalled at resistance. There's plenty of time left in the September option cycle so there is no rush to do anything. That said, we are overbought on a short term basis for most of the major averages. The Dow and the NYA have the most ground to make up to reach new all time highs as the other major averages are pretty close. As I've already stated the RUT made it there today. The price action that we've seen in stocks after last weeks Turkey currency scare has been positive. I do think that we'll make new all time highs in the S&P 500 quite soon. It's where we go after that giving me pause as the week moves forward. I'm still expecting a bearish conclusion to events after we set a new high. That's my guess for now. Europe and Asia were higher again as it appears that there's a worldwide push back into stocks. We'll see what the Fed minutes have to say tomorrow and how the market reacts to that.
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