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Wednesday, May 09, 2012

Still moving lower as the Dow fell 97 points on good volume.  The advance/declines were 2 to 1 negative.  Even more oversold now on a daily basis.  Summation index still heading lower.  I still expect a bounce here but that might be about it.  However my ideas have been wrong lately.  European worries continue.  GE lost 1/3 on heavy volume.  The question here is if this the beginning of a break to the trading range or a downside washout.  Time will tell.  Gold fell another $10 on the futures as the rise in the US dollar continues.  However the XAU gained 2 1/2.  ABX up 7/8, GG rose a buck and NEM higher by 1 3/4.  Volume was good.  Perhaps this is finally the end of the gold share decline.  It is the first out performance for the gold shares in a long time.  We'll see.  Mentally I'm feeling tired, did not sleep well.  I still feel that we are at a very important point in the stock indexes.  How the week ends will be telling.  I expected a bounce today and I think the odds of that happening tomorrow are very good.  What happens after that will be key.  Stay tuned.  

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