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Friday, November 20, 2020

Option expiration week finished on a down note as the Dow fell 219 points on average volume. The advance/declines were slightly negative. The summation index is still moving up. It was a down week for most of the major stock indices after a strong beginning. On the plus side the NASDAQ continues to be a better relative performer. The short term technical indicators for the S&P 500 have now rolled over. I am looking for weakness in the stock market going forward. I'm also looking at the chance to purchase some SPY December puts if we see a near term light volume rally. That could be the case with a holiday week on tap. We'll see. GE was up a dime on lighter volume. Remaining short term overbought here. Gold rose $7 on the futures. The US dollar finished little change once again. The XAU was up 1 1/3, while GDX added 1 /3. Volume was average for what it's been lately. The gold shares remain short term oversold. GDX is trying to hold its 200 day moving average. My GDX January calls are still losers. I'm still thinking that this trade will get stopped out before it shows any kind of profit. Mentally I'm feeling a bit tired. The VIX was a bit higher today and looks like it wants to form a bottom here. That would fit with lower stock prices going forward. It remains short term oversold. Nothing new in the fundamental background. The pandemic virus remains and Congress still can't agree on more stimulus money to hand out. Thanksgiving week coming up and I think that it will be a snoozer. Holding the GDX calls and looking to possibly purchase some SPY puts. That's the game plan for now. Plenty to check out over the weekend. Asia was mixed and Europe a bit higher to finish out the week. It's Friday afternoon and time for a break.

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