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Wednesday, October 11, 2017

Another day another new all time high as the Dow rose 42 points on light volume.  The advance/declines were positive.  The summation index is trending sideways.  Nothing new to report.  Just another day of overbought conditions with no sellers.  The Fed beige book was a yawn.  The RUT appears to be rolling over but it could also just be a pause before we move up there again as well.  The VIX remains below 10.  I don't have any trades in the works.  I'm on the sidelines for now after my last great idea to ladder up on the SPY October puts and we all know that didn't go as planned.  GE was off over 1/4 again and the volume was extremely heavy.  There's talk now of perhaps cutting the dividend.  That would be the final nail in the coffin for GE I think and the ideal time to perhaps try the longer term calls there.  Gold was flat on the futures as the US dollar was lower.  The XAU and GDX had slight fractional gains on light volume.  Mentally I'm feeling OK.  It's been a quiet October so far but that probably won't last for the whole month.  October can often times be quite volatile so we'll have to see what happens from here.  We are still in the condition of no overhead resistance so the sky remains the limit.  I am getting sell signal readings from numerous indicators that I keep track of but we haven't even seen a hint of a sell off.  At some point that will change but until then it's simply more of the same.  None of the sell signals for the SPY have worked lately and I'll be simply stepping aside until we see a more reasonable market.  Asia was generally higher and Europe mixed overnight.  We'll see what tomorrow brings.

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