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Monday, August 31, 2020

Overdue for some selling and we got some today as the Dow fell 223 points on end of the month heavy volume.  The advance/declines were over 2 to 1 negative.  The summation index is moving back down.  The NASDAQ was still in the green today and that's a plus for the bulls.  But the S&P was down and it remains short term overbought.  I did place an order for the SPY September puts but it wasn't filled.  I'm leaving it out there.  Might be too late though as this could be the start of a long awaited adjustment lower for stock prices.  Hasn't happened yet but the narrow advance with poor breadth is not a recipe for a huge rally.  Not to mention prices have pretty much been going straight up for almost two weeks.  GE was off 1/4 on heavy volume.  Gold was up a few bucks as the US dollar was lower.  The XAU rose 1 1/3, while GDX added 1/3.  Volume was light.  The technical indicators for the gold shares are now mid-range.  I'll look at the calls again if we make it back to short term oversold.  Mentally I'm feeling a but tired.  The VIX shot higher today and it is getting short term overbought.  I'm not sure what to make of it since it has been rising but so have stock prices until today.  I'm still favoring the SPY puts.  We are in a seasonal negative time frame for stocks and things won't go straight up forever.  We could see some beginning of the month money flows tomorrow morning.  Plenty of economic data out this week with the jobs report on Friday the main highlight.  It will also be a holiday weekend coming up.  I've got the open order for the SPY puts out there and I'll see if it has to be adjusted or not.  Asia was mixed and Europe lower to begin the week in overseas trade.  We'll see how things go tomorrow.

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