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Wednesday, August 05, 2009

A slight pullback as the Dow dropped 39 points. Advance/declines were negative. Volume looks like it picked up. All eyes waiting for Fridays employment report. The summation index is at its highest point that I can remember. It is due to start to drop. I do not expect a ton of upside from here. Considering how overbought we are and how long that condition has lasted, I have to be careful here about the bullish cause. We may just move sideways and not have a decent drop. We'll see but caution for the upside is my mantra here. It may keep me from playing the gold shares right now. Gold lost $3 today and the XAU dropped 1/2. ABX, GG and NEM all had fractional losses on light volume. The gold shares sold off early but came all the way back. The dollar continues weaker. It's possible that the dollar could take a hit after the employment report. That's a guess. I'm on the sidelines here for now. Could change tomorrow for all I know but probably not. Mentally I'm OK. Looking for a trade here but don't want to do anything stupid. I'll check things again tonight and go from there. So we'll see.

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