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Thursday, November 17, 2016

Moving up again as the Dow rose 35 points on what now passes for average volume.  The advance/declines were slightly higher.  The summation index is heading higher.  Overbought and staying there.  The overall market was once again stronger than the Dow and that's a positive.  We are going higher, it just won't be as fast as we've seen.  Any decline can be bought.  There is nothing to derail the momentum at the moment.  Option expiration tomorrow before a holiday week.  I expect another day of gains.  GE was up a nickel on very light volume.  Gold was off $6 on the futures as the US dollar continues to climb.  The XAU fell 1 2/3, while GDX shed 1/2.  Volume was good.  The gold shares are about to experience the death cross, with the 50 day moving average going below the 200 day moving average.  The fundamentals and the technicals do not favor the gold shares here.  Mentally I'm feeling OK.  I did not do the short term SPY November call trade, as I was not nimble enough to pull it off.  The idea turned out to be solid though.  I am considering the SPY December calls if we do see some type of decline soon.  But that may never come.  The strength of this run up has been exceptional, as the volume indicates.  I think that everyone is looking for a pullback to purchase.  Thanksgiving week is generally slow but bullish, so there probably won't be an opportunity there.  I suppose I'll simply have to remain patient and wait for a decent set up.  Europe and Asia generally had slight gains in overnight trade.  We'll close out the week with options expiration Friday tomorrow.

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