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Monday, November 06, 2017

The Dow managed a 9 point gain to begin the week on average volume.  The advance/declines were positive.  The summation index is still trending lower.  Not much to say about todays price action.  We traded in a pretty narrow range all day.  Not much on the economic data front this week so we will probably just trade off of the technicals.  We're still overbought on the big cap stock indices.  GE was flat on the session on heavy volume and came off of its highs.  We should get the dividend announcement a week from today.  That is when I'll decide on whether to try the longer term calls here or not.  I'm leaning towards attempting this trade though.  Gold rose over a dozen on the futures today as the US dollar was a bit lower.  The XAU added 1 1/2, while GDX gained 1/2.  Volume was better than it has been.  Mentally I'm feeling OK.  The rally continues, the trend is up and I'd simply expect the higher prices to keep coming.  There has been nothing to stop this market and that should simply continue.  Unless we get some negative headline out of the blue, I'd expect the new all time highs to just keep coming.  There's really nothing else to say.  I haven't traded the SPY in a while and with the changing of my trading brokerage account still in a funk, I don't expect that to change anytime soon.  We've also been very overbought there for weeks on end.  When the technical signals don't work, it's probably a good idea to sit things out until they do.  You certainly don't want to turn this into a guessing game.  You at least want to have something in your favor.  Asia was mixed and Europe lower overnight.  We'll see how it goes tomorrow.

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