Wednesday, February 19, 2020
Back to the upside for the Dow as it gained 115 points on average volume. The advance/declines were slightly positive. The summation index is moving sideways. New all time highs for the NASDAQ and the S&P 500. As long as the over the counter market is leading the way, the trend will be up. No matter the news, good or bad, the market continues to go higher. You cannot fight that. We are also in a seasonally strong period for stocks until sometime in April. I guess we'll just have to see how high things go. Short term overbought and staying that was for stocks. GE was off 1/8 and the volume picked up to the downside. Gold added another nine bucks on the futures and the US dollar was higher as well. The XAU rose 1 3/4, while GDX gained 1/2. Volume was good. I am leaving in an open order for the GDX March calls but it won't be filled unless we see some decline in the gold shares. However the train has already left the station with regards to the gold shares here. Simply another missed opportunity. Mentally I'm feeling OK. The VIX remains oversold and the rally in stocks lives on. There's no overhead resistance for stocks as I have already pointed out before. I guess we can just sit back and enjoy the ride. If and when the market starts to react negatively to some bad news, then we'll know that the tone has changed. Hasn't happened yet. Options expiration is on Friday and I don't see any change in the trend over the next couple of days. I'm looking for something to trade going forward but haven't come up with anything as of yet. It's probably too late for the GDX March call trade. March is also usually the weakest month of the year for gold as well. We'll see how it goes this time around. Europe and Asia were higher in last nights trade. We'll see how things go tomorrow.
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