 Okay, folks, welcome to Market Wrap. I'm sorry I'm getting this out late, but I had a dentist appointment after the close and I'm getting a crown put in, so they numb me up. So I apologize if I'm not speaking clearly as I should. Okay, so let's kick things off with what I think is going on here. I think that, yes, of course we have a deal that's eminent and there probably will be a deal, but here's my take. You had the bond market which was closed today. Yes, you had the TLT trading, which we're gonna talk about, but it's an ETF, so it was trading. However, the bond market was closed, therefore the tail which wags the dog is the bond market. That's the barometer of where stocks or which sector should be going which way, but it wasn't there today. There was no wind to guide the markets. So they took the path of least resistance by taking the largest few stocks, your Amazon's, Apple's, et cetera, you know the usual suspects, and they pumped them up higher. Now what do I think that they're doing? I think that they're pumping the market in advance of a deal and they're getting ready to pull the rug out from underneath everyone on the news. Perhaps the knee jerk reaction will be a move up higher, but I believe that what's gonna happen here is that given the election season, they're front running a deal because it's my belief that the markets want a Biden win. Why? It's because he's gonna have no problem going to Nancy Pelosi's 2.5, $3 trillion worth of stimulus, zero problem. He's gonna do what he's told. This is not political, it's reality. And so fulfill all the good he lists that he has promised his base, he has no other choice. So the markets want a Biden victory. So how do they ensure that? My thought process is this, front run the news, meaning front run the deal. Then when the market sells off, the finger of blame is pointed at President Trump because he wouldn't go for the bigger deal as encouraged by Biden Pelosi. That's my call. Now he can fight back. He's got another trillion dollars in Treasury that he could do with as he pleases. He's got the Federal Reserve, but between now and election day, expect volatility. And we're gonna talk about volatility in a moment. So let's begin with the TLT, an update it broke out, but volume as you might expect with the bond market closed very light. No surprise there. The VIX. Okay, it seems I talk more about the VIX being up nowadays along with the S&P 500 than anything else. And we know from each time that we've identified this, it doesn't end well for stocks, whether it be longer term as we identified prior to the COVID sell off back in late February or only a couple of weeks ago before the recent sell off, you saw VIX up, stocks up, it didn't end well for stocks. So here we are yet again, stock market up big, I believe the S&P 500 was up about one spot, 6% off the top of my head. And you have the VIX, which was up over a half percentage point, yes, it closed off the lows of the day, but it did retest support. It held, it rallied. Good price action. The chips, very good day today. Up on the day, new daily high, in fact, a new weekly high today. Stokes looking very encouraging. Volume, light, the dollar, another new weekly low, and we closed at the lows of the day, stokes still weak, volume very light, the Dow transports. All right, so along with the VIX, this is item number two of three concerns I have about today's price action. The Dow transports are very, very extended. I have been talking very bullishly about the transports. I am now very, very skeptical about the ability of the transports to continue higher from here, absent a correction. Am I predicting a crash? No, I'm predicting a correction. So why am I bearish? We've had now the fourth consecutive day closing above the two, not three, but two standard deviation Bollinger band. But keep in mind, this is an index, a massive index for it to be trading above the two standard deviation Bollinger band but this extended period of time is considerable. So you don't ignore it, you pay heed and respect where we're at. We close off the highs of the day, up volume continues to diminish. The Dow Jones industrial average, I'm still standing by the fact I think that we are going to get new all-time highs on the Dow Jones pre-election, despite the Wall Street shenanigans, I think that's what's gonna happen. If we begin to break down below support levels, well, then I'll have to modify that but that's been my position for a couple of weeks now, standing by it still. Stokes are pretty extended here. I think we're gonna pull back, put in a higher low and then move back up. Volume is very good today. We're up what? Not even a percentage point. Think about it, think about it. The Dow Jones was up just over three quarters of a percentage point, yet the triple Q's were up over 3%. The S&P 500 was up, one spot 64%. So where's the money rotating into? The mega cap tech names. How do we validate that? Look no further than technology, up nearly two and three quarters percent, leaning into the third standard deviation Bollinger Band back to the Q's. So the Bollinger Bands, when we added more aggressively to our short trade, we're trading above the third standard deviation Bollinger Band. We did sell off a bit into the close. Does that mean that we can't move higher tomorrow? No, they could pump it up higher. They probably will. But you can see we shorted up or added to shorts right up in here, and then they dumped it on volume, no less. But I think that what we'll do is we'll hold support, consolidate, make another run higher. Do we take out today's highs? The market will tell us. But generally when we get this extended, relative to the third standard deviation Bollinger Band, which has only happened in earnest once before this year, that was February the fourth of 2020. These are rare folks. And you may be looking at this candlestick here. It felt just shy of the 3D Bollinger Band. Certainly did not pierce it. Now, the last time it happened, yes, we continued to inch up higher than we rolled over. Of course, this was COVID. Hopefully we don't have another event like that or anything near it. But I think at the very least, we should be seeing a correction here in short order, massive volume today. That I have to say was very bullish. This is the biggest up volume day since March the 26th. The small caps showing topping action. Yes, they broke out, but they're gapping them up, filled candlesticks on a daily basis. They're extended on stokes. I think we're gonna roll over here. Do we crash? No, I think we roll over on stokes and on price put in higher lows, then we move up higher volume, very light on the small caps. The banks, I think we're gonna spike up higher here, but we'll probably fade within the next day. The stokes are at their highest point since November of 2019. So very strong price action on the banks. We're gonna remain long, but if they spike them up higher tomorrow, I may just book profits, allow the shares to pull back in, then re-enter at a lower price. Technology, we already went over this. I won't spend much time here. We know the deal, tap that 3D Bollinger Band, close right at it. Volume light, but rising sequentially. Consumer discretionary names broke out today. New all-time highs today. This is a weekly chart though, but still we broke out to new all-time highs. Daily chart stretched, stretched on a daily basis. Volume below average, energy. Up a little over a quarter percentage point, nice bullish reversal bar, nothing that would cause me to want to go adding more to energy than what we have right now. Oil, we're gonna have crude inventories tomorrow after the close. Not a good day for oil. We did hold support, another down day though. We held support, remember we broke out. Now we're re-testing. Hopefully it holds. Biotech, LABU, more filled candlestick price action. Don't like it, I think we pull back. Look at the volume folks, declining sequentially. Gold, inside day no new high, no new low. I think we're going higher. The GDXJ, a new daily and weekly high, but we faded to close down on the day. Uranium, holding support, consolidating at $11 per share. No reason to go adding more right now. We'll hold. Once these stokes start to trade above 50, that'll become more interested. PRTS, carparts.com finally moved higher today, yay. Okay, so nice move today, up 13% on the day. And we were up on volume, good to see. So good price action, stokes looking good, RSI looking good. We'll remain long and possibly look to add more. Rocket mortgage up over three quarters of a percentage point. Re-testing support, I think we're breaking out here. Stokes are looking rock solid, very good. The FAS, the bank stocks, I think we could spike up higher, but as I mentioned earlier, I'm probably gonna sell and or fade the rally. Go to cash, wait for the pullback, then buy back in. Boeing eked out a gain, doji star formation. We're just consolidating here. No reason to go adding more. I think if anything will break out, US Steel, an update, actually a flat, I should say. It gave up gains, but rallied off the lows. So no reason to go adding here. Let's watch it consolidate and ideally we break out. ExxonMobil down on the day. We did rally off the lows. Calmain Foods broke support today, but I'm gonna give it a little bit of room. A little bit of room, because we do have a support level right at, let's round it down to let's say 37.50. Give it a little bit of room. If it breaks, well then, we're gonna have to get out volume very light today. Stokes are very oversold. Churchill Downs, we bounced off of the lower band of support today. We're up 1.68%. We may be adding here fairly soon. Volume could have been better. Let's take a quick peek at a four hour chart. Actually a two hour chart. Yeah, I think we're gonna break out. Good close. So this one we may be looking to add to. Prior to a breakout. So more to come on CHDN, the EDC, the Emerging Markets ETF. We may be looking to lock in some gains here. Again, this is a trade off of the Stokes. Normally when you get this extended, you're gonna pull back, put in a higher low, flatten out, then hook back up. Simple trade, that's it. So lock in gains up here, pull back to support. Maybe at 64.51, jump back in, but I'll only do that if they spike it up tomorrow. The BRZU, we won't do the same here. I'm just gonna hold the current position, wait for a breakout and possibly look to add more. Volume is very light. As long as we see the dollar week, these names should do well. Leaving off with gold money, we're up nearly 7.5% today on gold money. Good move today. Close off the highs of the day, but clearly a new weekly high. Certainly a monthly high. Stokes rising, RSI rising, we like it. We'll remain long and we'll add where appropriate. Folks, have a great night. I'll talk to you tomorrow morning. Be well.