Wednesday, November 27, 2019
The holiday rally continues as the Dow rose 42 points on light volume. The advance/declines were shy of 2 to 1 positive. The summation index has turned around. The overall market was much stronger than the Dow and that bodes well for the bulls. We'll get a shortened session on Friday but the main players will be off for the rest of the week. Overbought, staying that way and no overhead resistance. Nothing has changed and we'll see what happens in December. GE was off a few cents on about average volume. Gold fell around $7 as we are just about at the support level of $1450. The US dollar was slightly higher. The XAU and GDX had fractional losses on light volume. I did adjust my order again for the GDX January calls but if support doesn't hold for gold I'll simply cancel it. The technical indicators for the gold share indices are mid-range. I do expect some type of rally for gold in the December to January time frame. Exactly when that will start is the question. Mentally I'm feeling OK. A low VIX, overbought indicators and new all time highs day after day. What could go wrong here? I expected a decline back to the break out former resistance at 3025 for the S&P and it never happened. In hindsight, buying calls on the break out was the proper play. There's still plenty of time in the December option cycle for a profitable trade somewhere. The question is will I be able to find it? Europe and Asia were higher as money continues to find a home in equities around the world. Happy Thanksgiving everyone.
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