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Monday, May 21, 2018

The Dow took off to the upside today on lessening overseas trade tensions.  The most watched index soared 298 points on light volume.  The advance/declines were over 2 to 1 positive.  The summation index continues higher.  The signal for a big move triggered by the McClellan oscillator worked out this time.  RUT is still moving up and the small stocks continue to lead the way.  All signs point to higher prices moving forward.  Sellers have disappeared for now.  The VIX remains in the 12 to 15 range and as long as it does, calls are in order.  GE was up over 1/4 and volume picked up.  Gold and the US dollar finished the day little changed.  Ditto for the XAU and GDX.  Volume was light.  Mentally I'm feeling OK.  As I looked things over this weekend what struck me the most was the negative hole that I've dug for myself in the trading account.  Poor decisions along with lousy or lack of trade management has created quite a loss to try and trade out of.  But you've got to take it one trade at a time.  It's also important to put whatever has happened, good or bad, out of your mind moving forward.  In other words you have to somehow learn to keep moving on despite what has happened.  You have to try and keep moving ahead regardless of the trading results.  Having a short memory will only help you in the trading game.  But that goes for the results, not the actual moves of the market.  For that, having a strong memory will only help you because things just simply keep repeating themselves in the market.  I don't have any solid trading ideas at the moment.  I am still considering the longer term gold share calls if we get sufficiently oversold.  I'm also going to take a look at the SPY puts again if the S&P 500 gets back to 2800.  Those are my thoughts for now.  Asia and Europe were higher last night.  We'll keep an eye on tonights developments. 

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