Tuesday, November 03, 2020
The pre-election rally continued as the Dow gained 555 points on good volume. The advance/declines were better than 4 to 1 positive. The summation index is now trying to turn back up. It appears that the market doesn't really care who wins tonight as long as it is over. The short term technical indicators for the S&P 500 have turned up. The next stop looks like the 50 day moving average at 3400. The Dow has now gained almost a thousand points in the two days before the election results. Certainly it doesn't appear to be worried about the outcome. Support has held and unless we see a complete turnaround tomorrow, which I doubt, the market is heading higher. GE was up 1/3 on good volume. Gold futures added another $15 as the US dollar was lower. The XAU gained 2 3/4, while GDX rose 3/4. Volume was lighter than it's been. My GDX November calls are now showing a small profit. I still have the other open order out there for the GDX calls at a lower strike price but will probably cancel it tonight. GDX has now moved too far for this order to get filled. At least the idea here was right but the timing was off. Water under the bridge as they say, I've got to just move on from here. I think that the gold shares still have room to go higher. Mentally I'm feeling OK. The VIX continues lower and has plenty of room to move down. That should match up with higher stock prices going forward. I suppose we'll watch the election results tonight and see what happens tomorrow. But I'm pretty sure that we've just begun a sustained rally regardless. Of course I've been sure about a few things lately that didn't come to pass. We've got the Fed and the jobs report to get through as the week moves on. Markets around the globe rallied pretty strongly as well overnight. Money is moving into stocks. We'll see how it goes post election tomorrow.
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