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Thursday, May 14, 2009

A slight bounce back as the Dow rose 46 points on average volume. Advance/declines were over 2 to 1 positive. The overall market was stronger than the Dow. Expiration tomorrow and then we'll go from there. Next week should be positive in my view and that may be a chance to get some OEX puts. Perhaps I'll give the market some time to build a top. The summation index won't be going much higher, if at all. We'll have to see how things play out here but I'm leaning to the downside for the June cycle. Gold was up a couple of bucks and the XAU gained a point. ABX lost 1/4 while GG was up 1/2. NEM gained 3/4. Volume was lackluster. The gold shares sold off hard early but came all the way back and then some. I still like them on a pullback. Overbought and have stayed that way for a while. The dollar was weaker again today. Conditions seem to be favoring gold at the moment. But I need to see the technicals come off the overbought condition before a trade is made. Mentally I'm a bit tired, could have slept more. An extra week on the June cycle and it's basically a waiting game for me at this point. It's all I can do. I've got some ideas going forward but we'll have to wait and see what the market tells us.

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