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Thursday, November 30, 2017

What a way to end the month as the Dow powered ahead by 331 points on extremely heavy volume.  The advance/declines were positive but not by the percentage that you usually would see with a market gaining so much.  The summation index is moving higher.  I've seen this kind of move before in this rally.  I always think that it is the final speculative blow off for the market.  But the market just then moves sideways and takes off again.  We're still in the overbought and staying that way category but this is really getting extreme.  But there is no overhead resistance so we'll just have to see how high this rocket can fly.  Soaring through 24000 was no problem.  Hopes of the tax bill being passed was the general reason for the advance but it hasn't happened yet.  If and when it does we have to ask, what's left for the market after that?  GE was lower by 19 cents and as usual couldn't even participate in an over 300 point gain.  Perhaps the January calls here isn't such a great idea.  I'm leaving the order open for now though.  Gold dropped almost ten bucks again.  The US dollar was a bit weaker.  The XAU and GDX had slight fractional losses on average volume.  Mentally I'm feeling tired.  We've had a great rally for the December option cycle so far and I'm languishing on the sidelines.  SPY calls were obviously the way to go.  But I can only control what I do.  When the outside influences of life take over, you have to step aside and be patient.  Only your best effort is what is required to have a chance to be successful.  Anything less usually won't cut it.  The VIX is on the rise and the market along with it.  That is an unusual combination.  I don't know what it means.  The breadth however is nowhere near what it should be for the major moves that we've seen so far this week.  We are heading straight up and in my experience that usually doesn't end well.  But like I said, it's already happened a few times this year and it hasn't meant anything.  Asia was mixed and Europe lower in last nights trade.  We'll begin the month of December and close out the week tomorrow.

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