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Tuesday, November 27, 2012

Heading lower today and that isn't unexpected as the Dow fell 89 points on light volume.  The advance/declines were negative.  We are working off the short term overbought condition of the stock indexes.  I would guess that the recently made lows would hold any decline but that is just a guess.  The summation index is still moving in a positive direction.  I feel as though we are simply taking a rest here but I do not expect any huge rally anytime soon either.  GE was off almost a 1/4 on lighter volume.  Nothing new to report here.  Gold fell $7 on the futures as the US dollar posted gains today.  The XAU dropped 3 3/4.  ABX off 3/4, GG fell 1 7/8 and NEM shed 1/3.  Volume was average for the gold shares.  The ABX January calls that I own continue to lose value.  Plenty of time for this trade to work out and I will hold these options at least into December.  However I would like to see the price direction turn around at some point this week.  Mentally I'm feeling OK.  A couple of down days to start the week and I would not be surprised if the weakness continued just a bit more.  We could be moving into a sideways trading range but only time will tell on that.  Gold fell a bit today but we are still above the rising trend line that began at the beginning of the month.  I would prefer to see the gold stocks taking the lead here but it hasn't happened yet.  We'll see what tomorrow brings.

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