Friday, December 06, 2019
The market powered higher today sparked by the good jobs numbers and the Dow climbed 337 points on average volume. The advance/declines were 3 to 1 positive. This will stop the summation index from moving lower but not exactly putting it back in an uptrend yet. It has turned the short term technical indicators back up though on the daily charts of the major stock indices. It has been quite a turnaround from the negative way that we started the week. We do remain at the mercy of the next trade headline. December 15th looms as the next important date as more tariffs are supposed to take effect. If an agreement is reached beforehand you can expect more upside. If not, then the opposite will probably occur. Still plenty of time left in the December option cycle. GE was up over 1/4 and the volume was good. Gold took a hit and the futures fell over $15. The US dollar rose a bit. The XAU fell 2 1/2, while GDX shed 2/3. Volume was heavy. The short term indicators have now rolled over here. I'm thankful that I did not chase the gold shares this week. If GDX makes it back towards the 26 level, I may still try the January calls. Mentally I'm feeling OK. New all time highs back in the picture for next week? It appears to be heading that way. There's also the potential for some negative divergences to show up as well. The VIX has turned around and is back below both the 50 and 200 day moving averages. But there's also still the chance that anything can happen when it comes to the geo-political trade war nonsense that we're in at the moment. I'll continue to check the charts over the weekend and go from there. Europe and Asia were higher to finish the week. It's Friday afternoon and time for a break.
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