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Thursday, November 21, 2019

Still moving lower as the Dow fell 55 points on average volume.  The advance/declines were negative.  The summation index is still moving down.  Not a lot to report about todays action.  We were down from the start, made it back to slightly positive only to drift lower the final couple of hours.  No conviction to the sell off and that's a plus for the bulls.  The short term technical indicators for the major averages have plenty of room to go lower but my guess is that we'll turn things around back to the upside soon.  A holiday week is coming and I'd expect some positive market action.  After that, who knows?  GE was up 1/8 on light volume.  Gold was off around $8.  The US dollar was slightly higher.  The XAU shed about 1 3/4, while GDX lost 1/2.  Volume was good.  I adjusted my open order lower for the GDX January calls.  There's plenty of room on the short term indicators here to run lower as well.  Support for GDX at the 26 level and that would be the spot to try and get the open option order filled.  Haven't gotten there yet and if the level doesn't hold you won't want the calls anyway.  Mentally I'm feeling OK.  The VIX hasn't shown much life here with a mild decline in stocks.  That's a plus.  However we remain at the mercy of the next trade headline either way.  I doubt we'll hear much with Thanksgiving on the horizon but I could be wrong.  To me what we are seeing now is simply a pause before we set new all time highs again.  After that, when we get into December, then it could be more interesting to the downside.  Patience is still advised for now with regards to the SPY trading.  Gold has had a lackluster levitation for the past week and a half.  $1450 is the level to watch there.  Europe and Asia continued lower last night.  We'll close out the trading week tomorrow. 

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