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Friday, June 03, 2011

Continuing lower as the Dow lost 97 points on light volume. Advance/declines were over 2 to 1 negative. The summation index has rolled back over to the downside. Not short term oversold just yet. The employment report was weak, we sold off, came back and sold off again. It was a bearish week and the trend is down. I suppose I'll look to get some OEX puts on a snap back. GE was down 1/4 on average volume. Oversold and staying there on GE. That's never a good sign. Gold was up about $10 today on the weaker US dollar and flight to safety play. The XAU was flat. ABX and NEM had fractional losses, while GG had a fractional gain. Volume was light. The gold shares really aren't rallying with the precious metal itself. I would like to try the GG June puts here but it is hard to do with the rally in gold. The US dollar also shows no sign of moving back to the upside here. It's a dilemma for the GG short trade. Perhaps I'll just have to look elsewhere. Mentally I'm doing OK, slept well. So we had a bad week and now where do we go? I will look for some type of snap back next week to go short. That is my idea at the moment. I'll have plenty of time over the weekend to decide which path to follow. I will have to ponder what to do with the gold shares as well. Right now I'm going to take a break and clear my head from the goings on in the markets this past week. It's Friday afternoon and time for a break.

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