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Friday, December 16, 2005

The Dow lost 6 points today on average volume. Advance/declines were slightly negative. I managed to stay out and did not make any trades this week. GE was basically unchanged. Gold was up a bit and the XAU gained about 2 points. We now enter the holiday period which generally has a bullish bias. However we are up against resistance and slightly overbought. Volume tends to dry up now too so it's hard to trust any moves. I would like to get long GE but now I'm not so sure. There are negative divergences out there on the McClellan oscillator and that cannot be ignored. I am also getting bearish readings on the CBOE call/put indicator. I guess I will just have to try and be patient to wait for a decent signal. Perhaps I'll take the rest of the year off at this point. Try and get ready for next year which should offer many good opportunities. Mentally I'm feeling better, getting over the slight cold that I have. I need to re-focus on what needs to be done here to insure the success that awaits next year. But for now I'll try and relax, enjoy the weekend and develop some type of gameplan for the new year. An extra week on the January options also will play into the scenario. But for now, rest...

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