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Wednesday, May 05, 2010

Down another 60 points today as the tone of the market has changed. Volume was good again. The advance/declines were almost 4 to 1 negative. The summation index is now moving down. Rallies can and will be sold. I will buy some OEX puts when we get a snap back. I would like to wait until next week but we'll see. The employment report on Friday will be the next event. I think that I will let it pass before taking on the next trade. Gold was up $5 today but the XAU fell 1 1/2. ABX and GG were little changed after being much lower early. NEM lost 3/4. Volume was average. The dollar continues higher but gold refuses to sell off. I'm still thinking of getting some ABX calls again but am holding off for now. It's a tough call there. We're working off the overbought condition but a stronger dollar will eventually have a negative effect on gold prices. The question is when? However with all the problems in Greece, the safe haven play of gold remains in effect. So it's a tough call one way or the other. Mentally I'm feeling tired, did not sleep enough. Volatility has returned and it makes things a bit more difficult. The speed of the game increases. If I had to guess, I think we're about to get some kind of bounce here. But I could be wrong.

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