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Thursday, May 10, 2012

Well we got a bounce today but it wasn't much of one as the Dow gained 20 points on light volume.  The advance/declines were positive.  We opened much higher and gradually sold off for the remainder of the day.  Still oversold but now both on a short and medium term basis.  The summation index continues lower.  We're still on the cusp of something here but what that is, I don't know.  Teetering on the neckline of potential head and shoulders tops for some of the stock indices.  GE was up about 1/8 on light volume.  It looked like we were going to break out to the downside in the trading range but we are back stuck in the range.  No trades in mind here really but I'm still looking at the July calls.  Gold didn't do much today and neither did the US dollar.  The yellow metal was up a buck on the futures.  The XAU was flat on the day.  ABX up 1/8, GG off 1/4 and NEM dropped 1/3.  Volume was light.  The weekly candlestick charts are starting to look constructive for the gold shares.  There is a possible hammer/morning star pattern developing.  The weekly technicals are blown out to the downside as well.  Mentally I'm feeling OK.  We really need to see more of a bounce for the stock indexes here in my opinion or we are on the verge of sharply lower prices.  That's my best guess right now.  I think we are at a point where anything can happen.  The market will go where it wants.  The problems in Europe seem to be taking center stage again.  I've been pretty much wrong on the gold shares lately and it was costly mentally and monetarily.  No trades there for now but I will attempt to trade there again.  We'll see how the week closes out.

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