Wednesday, February 25, 2026
Continuing higher as the Dow gained 307 points on heavy volume. The advance/declines were positive. The summation index is trending sideways. Once again the NASDAQ led things higher and that's a plus for the bulls. The S&P 500 had a gap up at the start and continued higher throughout the session. The short term indicators here are pointing up with room to go. The S&P looks like it will hit new all times highs again. However every time we have been in this situation for the past two months, the S&P cannot get through the 7000 level. Will it be different this time around? Stay tuned. Gold was up twenty bucks on the futures. The US dollar was a bit lower and interest rates a bit higher. The XAU rose 1 1/8 and GDX added over 1/2. Volume was light. The short term indicators here are heading sideways with some overbought. GDX finished off of the highs for the day. My open order for the GDX March calls got filled halfway through the session. It is showing a small gain. The idea is to hold this trade until Fridays inflation report or longer depending on the price action. We've have had a light volume return to the recent all time high for GDX. My expectation here is for some kind of pullback based on the technicals. Markets do go where they want however. Mentally I'm feeling OK. The VIX dropped which fits an up market. It is now right on the up trend line that began at the beginning of the year. A break through that line would be positive for stocks and imply that new all time highs are coming. The short term indicators for the VIX are pointing down with room to go. Tomorrow could be a waiting game as the end of the month occurs on Friday. Asia and Europe were up overnight. I'll keep an eye on tonights headlines.
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