Thursday, September 20, 2018
New all time highs in the Dow today as the most watched index soared 251 points on almost average volume. The advance/declines were 2 to 1 positive. This could turn the summation index around. Perhaps the run up that I didn't think was going to happen really is about to occur. The VIX remains below 12 and the RUT had a pretty good day as well. I'm not exactly convinced though, so I adjusted my SPY October put order to a higher strike price. Some of my TRIN numbers are showing a very overbought condition. But I can't rule out a melt up like we saw in January either. I'll be keeping a very close eye on things going forward. We are at least seeing a positive expiration week which is according to plan. GE was down 40 cents on good volume. Don't know what the story is there. Gold was only up a few bucks despite a decent drop in the US dollar. The XAU and GDX were little changed on OK volume. Mentally I'm feeling OK. Is this the start of a new leg up is the question. It seems the McClellan oscillator is saying so. Especially if we see good breadth tomorrow and a high positive reading. So maybe the market has digested the tariff tiff and is ready to move forward. Or maybe we're just getting some triple expiration maneuvering. Whatever the case, I should probably just let tomorrow pass and get ready for next week. Europe and Asia were both higher overnight as well. We'll see how the trading goes tonight.
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