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It looks like the market correction is over for the time being. Despite the flip-flopping on fiscal stimulus it's pretty clear that the market is anticipating additional stimulus regardless of the election outcome. I think this could become an issue if we end up with a contested election outcome that winds up in the courts, but for now that uncertainty is not being priced in.
The S&P 500 had a shallow correction that did not hit the 200 day moving average before reversing higher, and it is currently trading above the 20 and 50 day moving averages. It's possible that we could see additional downside if we get some political surprises over the next few weeks but it is also possible that we just continue higher and make a new high. As investors/traders, all we can really do is trade whatever the market is giving us.
Our renewable energy and utility companies have been on a strong run and are now becoming overbought. If we get a strong flush in the broad markets those holdings could be vulnerable and I would consider adding a hedge. But for now there is no sign of weakness. Our PM stocks are also hanging in there as the sector seeks out a bottom, but SSR Mining (SSRM - SSRM) continues to be weak.
SSRM has spent two weeks flirting with the 50 wma but is currently trading just above that level. I fundamentally really like this company and I am willing to be patient with it but if it really breaks down, I will likely replace it. There are plenty of other strong mining stocks that are holding up much better (FNV for example). For now, I will give it some breathing room around the 50 wma.
In terms of our quick trade stocks, all seven of our "buys" from the weekend have moved up. GRN is starting to look a little overbought, so I would consider taking partial profits on that one. My current recommendations for the rest are as follows.
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