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Wednesday, March 13, 2013

The Dow managed another small gain as the most watched index was up 5 points on light volume.  The advance/declines were positive.  We are getting to the end of this rally in my mind.  Although the action in the Dow transports today says that we'll get one more push to the upside in the stock indices.  But that should about do it.  The positive expiration bias remains for a couple of more days.  The summation index continues higher.  Bullishness abounds.  Maybe we can get a new all time high in the S&P 500 by the end of the week.  That's just a guess.  GE was up a touch on light volume.  The volume has dried up in this issue lately.  No trades here for now.  Gold lost $3 on the futures today, which wasn't all that bad considering the US dollar had another very strong day to the upside.  The XAU dropped 3 2/3.  ABX, GG and NEM all lost at least 2/3.  Volume was average.  Unless things turn around quickly my April ABX call trade doesn't have a chance of turning a profit.  Gold remains dead money and the gold shares even worse.  Mentally I'm feeling OK.  The negative RSI divergences remain on the charts for the major stock indexes.  Unless there is some strong upside move here, the divergences remain.  It is something that I can't ignore.  We'll see what happens moving forward.  Gold is going nowhere fast and continues to disappoint.  March is not a good month for the price of gold.  It looks like the ABX call trade will be another loser.  My ideas so far this year have been hit and miss.  And the misses have cost more than the hits.  But there's still over 5 weeks left for that trade and anything can and will happen in the markets. 

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