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Thursday, January 16, 2014

A mixed bag today as the Dow fell 65 points on average volume.  The advance/declines were positive.  The overall market was stronger than the Dow, with the NASDAQ finishing the day positive.  However the TRAN was weaker today.  The summation index is still moving up.  The signals are kind of mixed here really.  I'm still saying that a top is in the process of forming.  I would advise caution against anything other that short term long positions.  GE was off 1/8 and the volume was light.  We'll get some movement off of the earnings tomorrow to be sure.  Could go either way and I have no idea which.  We're still holding the 50 day moving average for now.  Gold rose $3 on the futures as the US dollar was a bit lower.  The XAU gained 7/8.  ABX, GG and NEM had small fractional gains on light volume.  No a lot of interest here for the gold shares as we grind our way higher.  Mentally I'm feeling OK.  Option expiration tomorrow plus some big name company earnings reports, INTC and GE.  We've really just been going sideways for the major stock indexes for about a month now.  I'm expecting that the resolution will be lower prices but I could be wrong.  Gold continues to hang around its 50 day moving average.  I'm still considering the February gold share calls if we see some decline in the near future.  Haven't seen much interest there lately though.  We'll get through Fridays expiration tomorrow and see where we stand.

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