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Monday, June 30, 2014

We closed out the month and the 2nd quarter on a down note as the Dow fell 25 points on light volume.  The advance/declines were positive.  Not much to really say about the price action on todays session.  It was a generally quiet close to the quarter.  The stock indices remain overbought on the short and medium term.  We'll start a new month tomorrow ahead of the jobs report on Thursday.  Expect light trading and little movement.  It is a holiday week.  GE was off 1/8 and the volume was light.  Below the 50 day moving average here and we've broken the near term uptrend line.  Gold gained over $10 including the aftermarket activity as the US dollar was lower.  The XAU rose 1 3/4.  ABX, GG and NEM all were up 1/4 or so on OK volume for a summer Monday.  The gold shares continue to attract buyers and it appears that we are finishing the near term consolidation on our way to higher prices.  I still do not want to chase the gold shares here but perhaps that is the correct move.  The market sometimes will not wait for you.  Mentally I'm feeling OK.  A wait and see attitude will probably serve the best right now.  The summer has arrived.  I don't see any major moves in the stock indexes on the near term horizon.  My guess would be a drift higher until we get some sort of catalyst one way or the other.  Gold has found buyers and the gold shares as well.  It appears that all of the sellers have left the building.  This too can change on a dime.  Overbought for the precious metals as well but sometimes that doesn't mean anything.  I'm still trying to be patient here.  We'll watch the overnight action and go from there.

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