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Thursday, July 18, 2019

It was a one day reversal to the upside as the Dow opened lower and barely closed higher.  It gained 3 points on average volume.  The advance/declines were positive.  The summation index is beginning to move sideways.  The overall market was stronger than the Dow.  Earnings are driving things until we get the fed at the end of the month.  GE was up eight cents on light volume.  Gold soared $24 on the futures as the US dollar was lower.  The XAU climbed three points while GDX gained 1 1/8.  Volume was heavy again.  The gold shares broke out, had a consolidation and now have broken out again.  Overbought continuously and I'm a fool for not just getting on board.  There is no pullback to get long here.  Practically straight up has been the scenario and I did know that possibility.  It won't end well of course but nobody knows where the end will be.  GDX is now over 28 and has risen about 10% in two days.  It will get to 30 because there is no resistance in the way.  I'm still considering the September calls here but the time has passed on getting a decent trade on here.  Mentally I'm frustrated for missing out on GDX.  It isn't a good frame of mind to be in playing this game.  I just can't bring myself to buy the calls when we are this overbought both short and medium term.  However patience hasn't paid off for me here as I'm on the sidelines watching the money being made.  There is a lot of buying power behind this move and I'm sure that it has legs from here as well.  Once you see gold on the evening news, you'll know we're near the end.  The S&P has had a minor stall this week and we'll see where we go from here.  Europe and Asia were both lower overnight.  We'll see how the expiration goes tomorrow.

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