Friday, March 26, 2021
We now have a better idea of where we're going as the Dow climbed 453 points on pretty heavy volume. The advance/declines were more than 3 to 1 positive. The summation index is trying to turn back up. Buyers showed up in the final hour and pushed indices to the brink of new all time highs. The short term technical indicators for the S&P 500 have turned back up. We should breach the 4000 level early next week. The rally occurred despite an uptick in rates. Not sure how high things will go here but there will be no overhead resistance. GE was up 1/8 on light volume. Gold rose five bucks as the US dollar was slightly lower. The XAU gained 3, while GDX was up 1/2. Volume was pretty light. The short term indicators for GDX are starting to turn back up. The daily candlestick chart has a bullish upside reversal pattern after todays price action. My open order for the GDX April calls hasn't been filled. I'm inclined to just buy some on any weakness Monday. I'll consider this over the weekend. Mentally I'm feeling OK. The VIX was lower, remains under the important 20 level and is implying higher prices going forward. It is short term oversold but can stay that way for weeks in an uptrend. The stock market has the feel of going up with the price action of the past two sessions. The technical indicators are starting to confirm this. I'm looking at strength to begin the holiday shortened week coming up and then we'll see where we go from there. I'll be taking a closer look at GDX and whether or not to try that idea. We're still in a favorable seasonal period for stocks as well. Plaenty to ponder over the weekend while checking out all the charts. Europe and Asia were both higher as money has come pouring back into stocks to close out the trading week. It's Friday afternoon and time for a break.
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