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Monday, August 20, 2018

A drift higher today as the Dow rose 89 points on light volume.  The advance/declines were 2 to 1 positive.  The summation index is moving higher.  The overall market was not as strong as the Dow.  It still looks like we'll see new all time highs in the S&P 500 soon.  RUT looks ready to crack the 1700 level as well.  The VIX is around 12 1/2.  I did adjust my open order for the SPY September puts to a higher strike price.  There isn't a lot of economic data due out this week but we will get the Fed minutes on Wednesday.  Chairman Powell also will give a speech on Friday.  Other than that I don't see any headline risk out there like we saw last week.. Of course that could change in a tweet.  GE was flat and the volume was light.  Gold gained a dozen as the US dollar was weaker today.  The XAU and GDX had slight fractional gains on good volume.  Mentally I'm feeling OK.  Just a summer Monday today as we roll into an extended week option cycle.  Perhaps traders will take the next couple of weeks a little slower than we've seen so far this summer.  I'm still looking for weakness going into September but that could change if we see a high volume breakout to new all time highs.  The short term technical indicators for the major averages are getting overbought though.  I'll leave in my open order for the SPY puts for now and continue to monitor the situation.  Asia and Europe were higher overnight.  We'll see how it goes tomorrow.

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