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Thursday, March 22, 2012

Lower once again as the Dow fell 78 points on light volume. The advance/declines were 3 to 1 negative. Summation index heading lower. Is this the beginning of a long awaited multi-week correction? I certainly don't know. Perhaps we'll move down to the 50 day moving average on the stock indices. Or not. All of the recent declines during this rally have been bought so far. There's no reason to think that now is any different. GE was off about 1/4 on average volume. The technicals appear to be rolling over here. Perhaps there will be an opportunity to purchase the May 20 calls at a decent price. I'm still considering that trade. I'll probably be looking at a move down to the 50 day moving average here as well. Gold lost $7 on the futures but were lower during the session. The US dollar gained a bit today. The XAU fell 3 1/2 and was weaker than the precious metal again. ABX off 1/2, GG down 1/4 and NEM dropped 3/4. Volume was light to average. I modified lower my open order for the ABX April calls last night and it was filled in the morning. They are slightly positive here at the close. I'm still thinking that this trade will work but I don't plan on holding it that long. We'll see. Mentally I'm doing as best that I can. Computer problems occurred today and I may have to buy another computer over the weekend. I'm on the back-up computer and it is not the same as regular trading operations. But the markets move on. We'll have to see how the week ends tomorrow as it seems that buyers have moved to the sidelines for now. The technicals on the stock indices have started to roll over. The next trade has begun. I'm expecting some type of bounce for the gold shares here but there's always the possibility that we just keep heading lower. The gold shares remain oversold on the technicals and the Gold/XAU ratio remains solidly in the buy zone. That hasn't mattered for some time now but it will. We'll see what tomorrow brings.

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