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Monday, November 04, 2019

Continuing higher as the Dow gained 114 points on heavy volume.  The advance/declines were positive.  The summation index is moving higher.  We remain overbought as we have been for weeks.  There's some economic data due this week but not a lot.  There's also some earnings to deal with but the bulk of companies have reported.  The market has broken out, the volume is decent and there is no overhead resistance.  Expect higher prices going forward.  GE was up 1/2 on heavy volume.  Overbought here as well.  Gold finished flat on the day, while the US dollar was higher.  The XAU dropped 1 1/3, while GDX shed 1/2.  Volume was good.  NEM reports tomorrow followed by GOLD on Wednesday.  This should move the gold shares indices one way or the other.  I've left my open order for the GDX January calls out there.  Mentally I'm feeling OK.  The VIX was a bit higher today with a market rally.  That usually is a sign of some weakness ahead.  I don't think I'll be able to trade it though.  The most recent time this occurred, we were only down for a day.  Plus with new all time highs being made on a daily basis, it's hard to be bearish here.  Perhaps if I get a better signal in the days ahead a trade might present itself in the SPY.  The Bollinger bands remain tight for gold and something big will happen there soon in my view.  I'm still assuming that it will be to the upside.  Time will tell on that.  Europe and Asia were generally higher.  We'll keep an eye on the overnight developments.

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