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Friday, April 30, 2010

Back to the downside with a vengeance as the Dow lost 158 points on good volume. Advance/declines were 3 to 1 negative. More bad news for Goldman Sachs is the excuse. Perhaps locking in some monthly profits at the end of April. Today solidifies my idea of purchasing some OEX puts. I will most likely do so on some strength next week if we get any. Summation index should be moving lower. The weekly candlestick charts for the major indices will have bearish engulfing candles. I think lower prices are ahead. Gold continues to find buyers as the metal rose $12. The XAU was only up 1/2. ABX, GG and NEM all had fractional gains on good volume. They were all higher early. I still may purchase some gold share calls if they ever pull back here. However ABX is at the top of its trend channel on a daily basis. So it may be time for a break. Still, you cannot deny the relative strength of the gold shares here. Obviously I should have held those ABX calls longer. Mentally I'm doing OK. So the week has ended and the tone of the market in my opinion is changing. If we get any kind of bounce back up next week, I believe it can be shorted. At some point next week I'm going to try the OEX puts. The gold shares may have to wait. I'll have to check the charts over the weekend and go from there. For now it's time to take a rest.

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