Wednesday, December 23, 2020
Another mixed session as the Dow gained 114 points on light volume. The advance/declines were a little better than 2 to 1 positive. The summation index is back to tracking sideways. The market had pretty nice gains for most of the day but dropped quickly in the final 15 minutes. The NASDAQ posted a loss. It does feel like holiday mode though as volume is slowing down. A half day of trading tomorrow and it's on to a long holiday weekend. The background is basically the same with regards to the pandemic virus. There was some chatter about the president not signing the recently passed stimulus bill but I sincerely doubt that. Brexit is just about finished. GE was up 1/4 on light volume. Gold was up a dozen on the February futures. The US dollar was lower. The XAU gained 2 1/2, while GDX was up almost 2 /3. Volume was light. I'm leaving my open order for the GDX January calls out there. Mentally I'm feeling OK. The VIX was lower today but did come up off of the lower levels early in the day. This indicator still looks like it could go either way. The market is entering a positive seasonal period now and I would expect things to trend upwards from here. I don't expect some sort of huge move higher but more of a gradual move forward barring any unforeseen news out of the blue. The premiums on the SPY January calls remain elevated. I'm still leaning towards the GDX call trade but may have to adjust my order in the beginning of next week. We'll see. Europe and Asia were higher. We'll close out the trading week tomorrow.
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