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Monday, December 08, 2014

An interesting start to the week as the Dow fell 105 points on good volume.  The advance/declines were over 2 to 1 negative.  We were off 150 at on point during the session.  Todays action should turn the summation index down.  I would not worry about any kind of big decline here.  My opinion is that we are simply setting things up for the next rally to begin at the start of the new year.  GE dropped 1/3 on good volume.  My open order for the March calls here is close to being filled.  Another down day tomorrow and it will get hit most likely.  Gold turned around to the upside during the trading day and were $5 on the futures, more in the aftermarket.  The US dollar was lower today.  The XAU was flat on the day after being lower early.  The same price action occurred with ABX, GG and NEM.  Volume was good for the gold shares.  My ABX January calls got all the way back to what I paid for them before finishing slightly in the black.  Mentally I'm feeling tired and physically I have a cold/flu.  Trading is tough enough to begin with and being sick isn't going to help.  Trading decisions now will be kept to a minimum.  I'm still considering the USO February calls but that issue continues to simply drop.  The overall stock indices are taking a breather here.  Weakness will be bought in my opinion.  If you have any call trades for the beginning of next year, now is the time to be looking to buy.  I could be wrong and often am.  However I think next year will be positive for stocks, with a decent lift off in January.  Gold has been holding up near the $1200 range despite a lot of not so good news for it lately.  Perhaps it can get some kind of upside traction soon.  But the technicals are more overbought here short term than oversold.  We'll see what tomorrow brings.

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