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Friday, August 24, 2018

Back to the upside as the Dow gained 133 points on very light volume.  The advance/declines were over 2 to 1 positive.  The summation index continues higher.  We finally closed at a new record high for the S&P 500.  It looks like there will be even higher prices coming up as well.  The VIX is at 12 and the RUT set another record today as well.  My open order for the SPY September puts was filled.  I may be a bit early on this trade.  It is showing a slight loss.  We are short term overbought on the major stock indices but in up trends it stays that way.  The volume has also been pretty light but it is the last couple of weeks of summer.  That said there is plenty of time for this trade to pan out at a profit since there's an extra week in the September option cycle.  GE was off a few cents and the volume's light.  Gold came to life today as politicians are trying to talk down the dollar.  The precious metal futures rose almost twenty bucks with the dollar heading lower.  The XAU gained 2 1/3, while GDX was up 1/2.  Volume was heavy.  It still didn't help my GDX September calls.  They're still dead.  Mentally I'm feeling OK.  Stocks continue to move higher and it looks like clear sailing from here in the short term.  Supposed bad news is being shrugged off and any selling is met with buying.  Could it be that the usual seasonal weakness for stocks won't show up this year as the usual seasonal strength for gold didn't happen?  It certainly appears that way at the moment.  I'll put in my stop loss order for this SPY September put trade and go from there.  I'd expect next week to be a light volume affair like this week as it's the last hurrah of summer.  Not much else to do now except check the charts over the weekend and wait for the open on Monday.  Unless we get some headline out of the blue, expect higher prices next week.  Asia was mixed and Europe slightly higher to close out the trading week overseas.  It's Friday afternoon and time for a break.

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