3:00 Pacific. Monday September 18, 2017
DOW + 63 on 384 net advances
NASDAQ COMP + 6 on 623 net advances
SHORT TERM TREND Bullish
INTERMEDIATE TERM Bullish
STOCKS: There is not a lot to analyze about the action on Monday. We thought it might pull back a bit as a reaction to the quadruple expiration on Friday, but no such luck.
There seems to be a group of institutional investors who have missed this rally and they are in a bit of a panic mode. They feel the need to buy every dip no matter how minor. Today for instance, the S&P 500 actually went negative late in the session, but it was bought.
On a fundamental basis, there is anticipation that the recent hurricanes are going to spur buying and repair work, thus increasing corporate profits in companies like Home Depot.
GOLD: Gold was down $14. The Wall Street Journal online attributed it to strength in the greenback. I'm not sure about this. The dollar wasn't all that strong.
CHART: Sometimes analysts can over think the markets. They forget the "ultimate indicator". And what is that? Price itself. Just look at the chart. Is that an uptrend? It surely looks like it to me and it has been going on for almost a year. Yes, it's overbought, but in a bull market, it can stay that way for an extended period.
BOTTOM LINE: (Trading)