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Tuesday, June 19, 2018

Another downer for the Dow as it lost 287 points on average volume.  The advance/declines were negative.  The summation index is still heading sideways.  Trade tensions again as the tariff talk heats up again.  The overall market remains much stronger than the Dow despite falling here.  As long as that is the case, I do not expect a full on rout.  I am considering a short term trade for the SPY July calls but we may have already passed the optimum point for that.  I'll check the charts again tonight and go from there.  GE fell 1/4 on good volume.  Gold dropped a couple bucks as the US dollar rose.  The XAU and GDX had fractional losses on average volume.  Mentally I'm feeling OK.  RUT continues to shine and since it's usually the leader this decline in the overall market should not last long.  That's my best guess at the moment.  I may attempt a trade here but it would strictly be short term in nature.  The option premiums for July remain prohibitive.  The market has had a gap down at the open for a few days in a row now, only to make up ground throughout the trading session.  You will know the decline is ready to really get going when the buying during the day dries up.  Hasn't happened yet.  Europe and Asia were both lower in last nights trade.  We'll see how things go tomorrow.

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