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Thursday, January 19, 2012

Moving ahead is what we continue to do as the Dow gained 45 points today on average volume. The advance/declines were almost 2 to 1 positive. The overall market remains a bit stronger than the Dow. There is nothing new to report as the grind higher remains in place. We'll have to wait and see what happens after the option expiration tomorrow. GE was up 1/8 on average volume. Earnings out tomorrow morning and perhaps the Dow will take its cue for the day from that report. No trades in mind there even after the numbers are released. Gold fell $5 on the futures despite the weaker US dollar. The XAU lost 3 1/8. The gold shares have shown weak relative strength here, related to gold itself and the overall stock market. Not sure if it means anything. ABX off 1 1/2, GG down 1/2 and NEM lost 3/4. Volume picked up to the downside. The Gold/XAU ratio is moving in the right direction to offer a buy signal but it might take a few more days. The technicals on the gold shares have rolled over. If and when we reach oversold here will be the time to attempt the gold share calls. That looks as though it will likely be the next trade. Mentally I'm feeling tired, did not sleep well again. It has been a good bullish run for the stock indices and there seems to be no end coming to it in the near term. Calls have been and continue to be the way to go. I'm not exactly sure what is going on with the gold shares here and it will bear keeping an eye on things. The disconnect amongst the shares with the US dollar, gold itself and the stock market strength is puzzling. Perhaps things are weaker here than I think. We'll see. Let's get through Fridays expiration and go from there.

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