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Wednesday, January 12, 2005

We got a bounce at the end of the day with the Dow up 60 points. Advance/declines were positive and the volume was average. The market opened lower, then closed higher so it's possible that it was a one day reversal. We closed right at a multi-day down trend line. Perhaps if we can take it out tomorrow we could get a few days of upside. But I'm not convinced the downturn is over. I only hope it is. GE was up around a quarter on good volume. It's encouraging but it is only one day. There is a downtrend line in place here also but GE is about 50 cents away from it. Will I hold on until the earnings next Friday? I don't know. Sure I'll hold the options with no bid, I don't have a choice. But I've got some others that might bail out the losers. Time will tell. Gold was up $4 today but the gold shares did nothing much. NEM was higher and ABX lower. Perhaps the relative strength has switched back to NEM. The dollar was weaker on poor trade numbers. I'm holding off on a gold trade until I finish with GE. Next week is a short week which must be factored into the trading equation also. Possibly got a divergence with the McClellan oscillator today but it depends on the action from here. Was today a one day wonder? Tomorrow will tell a lot...

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