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Thursday, December 13, 2012

We lost some ground today as the Dow fell 75 points on light volume.  The advance/declines were 2 to 1 negative.  The overbought condition of the stock indices needs to be worked off and this is the beginning.  Whether or not it turns into a full on rout has yet to be determined.  I don't think that it will but what do I know?  The daily candlestick chart on the S&P 500 now looks bearish with the pattern of a white candle, followed by an evening star and a black candle.  So I think that near term we will probably be in a down to sideways pattern.  GE was off 1/8 on light volume.  Still above the 50 day moving average here.  Gold fell $20 today on the futures as there was no follow through to the Feds action yesterday.  That isn't bullish.  The US dollar was a bit higher.  The XAU reversed yesterdays positive action and was down 4 1/8.  ABX off 3/4, GG and NEM fell 1 1/4.  Volume was light to average.  My ABX January calls remain mired in the red.  Mentally I'm feeling OK.  Still plenty of talk out of Washington and no action.  We remain hostage to that situation but eventually it will clear.  Headline risk is still in place.  6 days to go in the December option cycle.  Gold continues to simply be dead money.  I thought after yesterday that perhaps we would get a multi-day rally but it was not to be.  I'm going to have to consider when to take the loss there unless there is a dramatic turn of events to the upside in gold.  We'll see what tomorrow brings to end up the week.   

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