End of day crashes... - Trading Journal 11.20.20

This past week has proven to be very interesting near the end of trading session and it won't surprise me if next week we see something similar. Ever since Monday's near end of session gap up the remainder of the week had everyday dropping near the end of the day. No more pronounced than Wed, Thurs, and Friday. What is interesting is that it happen mostly right before the closing bell. For instance today's trad action move literally was to the down side with 5 minutes to spear before closing bell.

For the week SPY is down, but notice on Monday the volume to the buy side has been larger than any of the down days since. At the end of the day whether its re-balancing from institutions or lack of liquidity the smart money tends to trade at the end of the session. Four consecutive drops seems ominous for what will be the shorten week ahead.

VIX is still decaying and since no real fear in the markets it may likely continue until the end of thanksgiving week. This would be supportive of stock prices with VIX dropping. I will be looking forward to buying stocks next week if prices do not crater and stabilize.

Sector of focus for me is energy while I am also going to watch commodities such as gold and silver. It appears they have either a breakout or breakdown very soon. The overall trend has been bullish since early of the year but current move lacks bull conviction and may likely be a turning point. Swift drops will come often on turning points. Not buying gold/silver but shorting it if I see GLD below 170 while silver under 21.

Thanks for reading!

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