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Friday, August 22, 2008

A summer Friday rally as the Dow gained 198 points on light volume. Advance/declines were over 2 to 1 positive. Are we heading to 620 on the OEX? Perhaps but there is still a long way to go there. The summation index should be back to the upside after today. No trades in mind for the OEX until we see a decent signal. Gold lost ground today, down $5 on the futures and twice that in the after market. The XAU lost 5 points. ABX, GG and NEM were all lower. ABX and GG each shed more that a point. The volume was lighter than lately. The GG calls are still showing a profit. The volume pattern is positive for the upside for now. But we know how that can change. The dollar had a good day and oil gave back everything it gained yesterday. I'm going to look for slow trading in gold next week. GE was up 1/3 on light volume. Would have liked to see it higher since we gained almost 200 points. Mentally I'm feeling OK, slept well enough. So where do we go from here? I suppose that I'm still going to wait for GG to get to the top of the stochastic range before I dump the calls. Unless something dramatic occurs. Perhaps we will take next week to build a better base there. I'll wait on the OEX. I'll be checking the charts over the weekend. For now it's Friday, at the end of summer and time for a break.

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