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Thursday, May 31, 2012

We bounced around today ahead of tomorrows employment report and finished the day with a loss of 26 points on the Dow.  The advance/declines were slightly negative and the volume was pretty good for a change.  Perhaps due to the end of the month but that's just a guess.  We were down 100 points early and made it all the way back to positive territory before falling once again.  The US economic data was weak and there was no new news out of Europe.  Anything can happen tomorrow and I certainly don't know what will occur.  However I'm still a believer that there will be higher prices coming soon.  There is way too much bearishness around.  GE was up a touch on average volume.  I'm still considering the July calls here.  Gold lost just a buck after coming back from its early lows.  The US dollar was a touch higher today.  The XAU fell 1 1/2.  ABX was flat while GG fell 1/2 and NEM dropped 2/3.  Volume looked to be average.  I'm still leaving in the open order for the June ABX calls.  The relative strength of ABX lately has been strong for the gold mining stocks.  I would like to do this trade but I am not going to press the issue.  If the price ABX declines to fill my option order, I'll take it.  If not I'll be looking elsewhere.  Mentally I'm feeling tired, did not sleep enough.  So we'll get the jobs report, the market will react and then what?  We're still at the mercy of Greece, Spain and whatever else happens in Europe.  There is no easy solution there and no quick fix.  A tougher than usual trading environment.  Technically it looks like some of the stock indices are trying to put in a short term double bottom.  Time will tell on that.  We'll get through tomorrow and go from there.

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