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Thursday, November 20, 2014

Another early sell off and another comeback as the Dow gained 33 points on light volume.  The advance/declines were 2 to 1 positive.  The summation index is beginning to trend sideways.  Things should pretty much slow down for the next week of trading days as the Thanksgiving holiday approaches.  I'd expect an overall positive bias to exist for the major stock averages.  We're still short term overbought and that condition persists.  No change to the uptrend for now.  GE was off a few cents and the volume was pretty light.  No trades here for now.  The gold futures were off three bucks but made up what they lost in the aftermarket last night.  Some volatility now for gold.  The US dollar finished the session little changed.  The XAU was up 1 7/8.  ABX rose 1/3, while GG and NEM were up 1/2.  Volume was light.  I think that sideways is the most that we can expect near term for the gold shares.  Overbought on the short term here.  My ABX January calls are still in the black.  I really need to think about selling them here but there is the potential for more upside after a digestion period.  Or not.  The game is never easy.  Mentally I'm feeling OK.  Patience is required now as we wait for the next set up.  I don't think that the OEX puts are the right trade even though we are overbought.  Declines are easily still being bought at the moment.  So we wait.  GE has had a nice upside run and getting the March calls is still in the plans.  However some type of pullback must occur for this trade to be worth it.  Gold and the gold shares have started to act better but there still may be some end of the year selling to contend with here.  I am tempted to simply book the profit here that I already have.  It's something to think about.  Expiration Friday tomorrow in front of a holiday week coming up.  We'll watch what happens in the foreign markets and close out the week tomorrow. 

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