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Friday, November 06, 2020

A pause in the rally as the Dow fell 66 points on heavy volume. The advance/declines were negative. The summation index continues higher. The jobs report was a bit better than expected but the market seems to still be focussed on politics. The S&P 500 is almost short term overbought but in rallies it can stay that way. The weekly candlestick chart looks positive for the S&P and new all time highs look to be coming soon. But I wouldn't be surprised if we track sideways before attempting the next leg up. GE was up a dime on OK volume. Gold was slightly higher and the US dollar was slightly lower. The XAU was up 1 1/4, while GDX rose twenty cents. Volume was light. My GDX November calls remain in the black for now. GDX is stalling at the declining tops line but I think it is simply a matter of time before it breaks through. Mentally I'm feeling OK. The VIX had a good drop today but we didn't see a decent rise in stock prices. Not exactly sure what that means. Now short term oversold on the VIX technical indicators. It was a great week for stocks and we'll see if we can continue the run up next week. Asia was higher and Europe generally lower to finish out the week. It's Friday afternoon and time for a rest.

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