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Wednesday, April 21, 2021

Back to the upside as the Dow gained 316 points on average volume. The advance/declines were better than 3 to 1 positive. The summation index is beginning to track sideways. Gains all the way around as the selling has stopped for now. We'll probably hit new all time highs again soon. I'll be watching for any possible divergences when and if that happens. The other potential negatives with the NASDAQ and the Russell 2000 don't look so potential after todays price action. GE was up about 1/4 and the volume was light. Gold gained $15 on the futures as the US dollar was slightly lower. Rates were little changed. The XAU added 3 1/3, while GDX was up 2/3. Volume was light. Looks like we won't get a chance to jump on the gold bandwagon this time around. Overbought and staying that way. Mentally I'm feeling a bit tired. The VIX dropped today and that fits with todays price action. Unless we see a big down session tomorrow, the VIX should trend lower and stock prices trend higher. We're still in the good seasonal spot for equities but at the tail end. Perhaps a nice run higher into the end of the month and then the picture could change. Just a guess on my part there. Still plenty of earnings reports to sift through. Asia was lower and Europe higher overnight. We'll keep an eye on the overnight developments.

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