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Thursday, October 02, 2014

A pretty good comeback today as the Dow was down over 100 points and made it back to finish the day with a loss of 3 points.  The advance/declines were slightly positive.  Volume was heavy again.  The summation index continues lower.  My guess is short covering today ahead of tomorrows employment report but who knows?  Rallies appear out of nowhere in down trends.  And we are still in a down trend.  Almost at the zero line on the summation index.  The small stocks acted better today but one day doesn't make a trend.  GE was off a few cents on average volume.  No trades here for now.  Gold was little changed despite a drop in the US dollar.  The XAU gained 2/3.  ABX was flat on the session, while GG and NEM had fractional gains.  Volume was good here.  Nothing to change the persistent selling in gold and the gold shares.  Oversold, staying that way with no end in sight.  Mentally I'm feeling OK.  Tomorrows price action will be pretty important.  If we rally there is a chance that the decline is over.  But I don't think that will occur.  I think that we are in a multi-week decline and things will get worse to the downside before they get better.  I really don't think the numbers tomorrow mean as much as the price action afterwards.  We are short term oversold on the stock indices.  However in downturns the markets simply remain that way.  So we'll see.  Gold has stayed above $1200 so far but there hasn't been any rally attempt yet.  The gold shares remain weak.  This is like a broken record.  The foreign markets got slammed last night.  Perhaps todays action in the Dow will help out there.  But there is trouble in the streets of Hong Kong and that isn't going away soon.  Interesting times.  So hold on to your seats folks as tomorrow should be a very volatile session. 

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