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Monday, May 20, 2013

A one day reversal to the downside for the Dow today as we opened higher and closed lower.  The Dow fell 19 points on light volume.  The advance/declines were positive.  I'm not sure this is the end of the rally and it probably isn't.  The momentum run to the upside won't be stopped by just one day of decline.  Still overbought on all time frames.  Summation index still to the upside.  We've got Bernanke flapping his gums on Wednesday and the release of the Fed minutes that day too.  So Wednesday looks like the day for some market movement.  GE was up 1/8 and the volume was light.  We'll need to see a solid break above $23.75 to get bullish here.  Gold had a one day reversal to the upside as it sold off early and then came all the way back.  The precious metal futures gained $20 as the US dollar was weaker on the session.  Gold needs to hold up here for a successful retest of the crash lows.  So far so good but it remains to be seen if the lows will hold.  The XAU rose 5 1/2.  ABX, GG and NEM were all up more than a buck on good volume.  My ABX October calls made it back into the black.  Would really like to see ABX close out the month of May with a solid gain for these calls to work longer term.  Mentally I'm feeling OK.  Perhaps tomorrow will be a waiting game on the Fed.  Not much else to report for today.  Gold had a nice comeback for the bulls today but gold can be very volatile in both directions.  This weeks action is important.  We'll keep an eye on the foreign markets and take it from there.     

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