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Thursday, October 21, 2021

The Dow was off 6 points today on what now passes for average volume but it still seems light to me. The advance/declines were slightly negative. The summation index continues higher. The overall market was much stronger than the Dow with the NASDAQ leading the way. That is bullish. The S&P 500 set a new all time closing high. Overbought, staying that way and the trend is up until further notce. Gold was slightly lower today. The US dollar was a bit higher along with interest rates. The XAU and GDX had slight fractional losses on light volume. My open order for the GDX January calls remains out there. Mentally I'm feeling OK. The VIX was still lower today. It remains short term oversold. The short term technical indicators are as oversold as they've been in a long time. The VIX says that the rally will live on. We will not argue with that. I suppose we'll just have to see how high things can go. Perhaps try the SPY November calls if we do get some kind of pullback. Premiums do remain high though as there is plenty of time in the November option cycle. Europe and Asia were lower overnight. We'll close out the trading week tomorrow.

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