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Wednesday, December 11, 2013

Some steam to the downside today as the Dow fell 129 points on average volume.  The advance/declines were 4 to 1 negative.  The summation index continues lower and that is what we will keep our eye on.  It has kept me defensive on the stock indices here and rightfully so.  But in this game that could all change tomorrow but I don't think that it will.  No real reasons for todays decline as we challenge the 50 day moving averages on some of the stock indexes.  The smaller stocks have been relatively weaker here and that is a negative.  GE was off 1/2 on better volume.  Still above the 50 day moving average here.  Gold was off $4 on the futures and another $5 in the aftermarket.  The US dollar was slightly lower.  The XAU dropped 3 points, giving up what it gained yesterday.  ABX and GG fell 1/2, while NEM lost 3/4.  Volume was light to average.  The price of gold held up pretty good today but not the gold shares.  If we do get more decline in the stock market, the gold shares will most likely follow.  I'm not sure if I'll try the GG January calls right now but it's something to ponder this evening.  Mentally I'm feeling OK.  Weakness prevails here so we'll have to see if the 50 day moving averages provide support.  Still no data to move things but perhaps downside momentum will take over.  Gold had a pause in the recent strength today.  We'll see if the weakness continues tomorrow.  As always we'll keep an eye on the foreign markets to see if they mirror the US action today. 

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