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Tuesday, December 03, 2013

Still lower today as the Dow fell 94 points on average volume.  The advance/declines were negative.  We finished well off of the lows for the day.  Still not a major decline here and the summation index is moving sideways.  The short term technicals have rolled over for some of the indices.  The overall market was stronger than the Dow here.  After three negative sessions I'd expect tomorrow to be to the upside.  Lots of economic data on board for the next three days.  The VIX has spiked up but we really haven't seen any drastic price erosion.  Not sure what that implies.  GE was off a dime and the volume was average.  Might try the calls if the price reaches the 50 day moving average on the daily charts.  Not there yet.  Gold stabilized today at the $1220 level.  The US dollar was weaker on the session but gold did not respond.  The XAU was off a point.  ABX was flat, while GG and NEM had fractional losses.  Volume was average for ABX and above average for the others.  I did place an overnight order for some January GG calls but it was not filled.  Despite the loss for GG today, the option premiums barely budged.  However the volume for the calls I wanted to purchase exploded.  It was 10 times the open interest.  I don't know if positions were being outright opened or the calls being written to collect the premium.  We'll see how much the open interest expands tomorrow.  I left the open order in overnight.  Mentally I'm feeling OK.  Expect a bounce tomorrow for the stock indexes.  That is the guess here.  After that, who knows?  The employment report on Friday should be a market mover.  The European markets got hit hard overnight.  We'll see if they follow through lower tomorrow.  I'm still waiting for gold to get to $1200 and we are almost there.  My open order for the January GG calls reflects this.  They are priced accordingly.  Let's not forget though that the fundamentals for gold right now are not positive.  Any longs should be trades only.  We'll see what tomorrow brings.

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