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Thursday, January 18, 2007

The Dow lost 9 points on good volume. Advance/declines were negative. The market had a small rally early and then sold off. There was a sell signal on the McClellan oscillator last night. We were also overbought and we still are on an intermediate term basis. GE was down on heavy volume today. It sold off hard and I would have been stopped out but I canceled the stop-loss order. I wanted to wait for the earnings tomorrow. GE somehow rallied back some but was still down on the day. The calls had very heavy volume. I don't know what it means but tomorrow morning it will all work itself out one way or the other. I will try and sell out quickly if there is good or bad news. Tech has been selling off here and IBM just announced after the bell and it is down. My hope is that all the selling in GE took place today. We'll see. Gold lost $5 today and the XAU shed 2 1/2. ABX was down on good volume and is approaching a very important trendline. My thought at this point is that it will break it. Although I might take a chance and get some calls here. Oil continues to fall and was below $50 briefly today. Commodities are taking a hit but I don't think that will last forever. Perhaps some of the tech money will find its way there. Just a thought. Mentally I'm not happy with the way this GE trade has gone. I should have been out long ago. Short term trades are not supposed to last 3 weeks. I only have myself to blame. I'm hoping I can salvage not getting killed in this thing tomorrow. But that is a possibility also. At this point, all I can do is wait...

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