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Friday, February 22, 2019

Back to the upside to close out the week as the Dow gained 181 points on about average volume.  The advance/declines were over 2 to 1 positive.  The summation index is moving up.  The market rallied in the final hour and that's bullish.  I did place an open order overnight for the SPY March puts and it was filled in the morning.  The market continues to rally and even though I had a stop loss order in, I decided to try and move up to a better strike price if I could get filled for about the same price that I paid in the morning.  Right near the close I was able to purchase some SPY March puts at a closer to the money strike price and I did.  I then sold the morning position at the market for a loss of less than 20%.  My rational was if the trade does work the extra profit form the better strike price will more than make up for the small loss.  I now have a stop loss order in on the later trade and we'll see how it goes going forward.  Still overbought and staying that way but that won't last forever.  GE was up 1/8 on light volume.  The heavy volume that we saw for weeks on GE has dried up.  Gold was up $5 on the futures and the US dollar was basically unchanged.  The XAU and GDX had slight fractional moves higher on average volume.  Mentally I'm feeling OK.  So the next trade is on after an early in the day failed attempt.  Nothing says the market has to move down here and all attempts at the puts lately have failed.  We are less than 8 points away form 2800 on the S&P 500 and that was the level that I was looking for to get short.  So yes, I may be early and the market may just cut through 2800 and keep going higher.  The stop loss order is in so if I'm wrong here it won't hurt too much.  I'll keep an eye on the weekend headlines as I recheck the charts.  Asia was mixed and Europe higher overnight.  It's Friday afternoon and time for a break.

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