Monday, January 05, 2026
We have all the players back now and the Dow posted a gain of 594 points to a new all time high on heavy volume. The advance/declines were 2 to 1 positive. The summation index is turning back up. The NASDAQ and S&P 500 posted gains but not as much as the Dow. The Dow leading isn't the most bullish scenario. The short term indicators for the S&P are starting to turn back up. I did place an order overnight for the SPY January calls but it wasn't filled and I canceled it. Might try this idea again depending on the market price action going forward. However the Santa Claus rally did not take place this year and that could be a warning sign. Gold was up $123 on geo-political tensions. The US dollar finished lower along with interest rates. The XAU climbed 11 1/4, while GDX jumped 2 3/4. Volume was a touch above average. The short term indicators for GDX have turned back up but it did finish well off of the highs on the session. However there is no shortage of buyers it seems on any sell off. Mentally I'm feeling OK. The VIX was up today which doesn't fit with higher stock prices. The short term indicators here are inching higher. Not sure what's next for the VIX. Employment data this week is the main economic event. The market price action ahead of that will determine which way we go, if we go at all. I am expecting the market to move higher this week though. I could be wrong. Europe and Asia were higher to begin the week with the exception of India. We'll see if we get any upside follow through tomorrow.
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