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Tuesday, December 09, 2014

Another crazy session as the Dow was off over 200 points early but came back to finish the day lower by 51.  Volume was heavy again and the advance/declines were positive.  The small stocks fared much better than the Dow and that is a positive.  Declines continue to be bought.  That is the theme for now and I expect it to continue.  The summation index is moving lower but I don't think it will turn into some type of market rout.  We are setting up for the rally that will appear in the new year.  That is my guess at the moment.  GE was off 1/8 and the volume was good.  My open order for the GE March calls was filled early when GE tanked with the overall market.  I have the stop loss order in place.  This trade has plenty of time to work and I am very positive that this will turn into a decent profit.  I could be wrong.  Gold soared on fear when the stock indices dropped on the open.  The precious metal futures rose $35 as the US dollar was lower again.  Gold has now risen above its 50 day moving average.  Ditto for silver, which had a good session as well.  The gold shares didn't move as much as I would have liked though.  The XAU gained 3 1/8.  ABX up 1/2, while GG and NEM added around 7/8.  Volume was decent.  My ABX January calls are back in the black.  Mentally I'm feeling OK but I'm still feeling ill from the cold/flu.  Not being 100% makes for tough trading but thankfully there isn't a lot of thought to be done with what I have going on right now.  Todays market comeback only solidifies the idea that dips are to be purchased.  There will be plenty of time to develop new trades when I'm feeling better.  I'm still thinking about the USO February calls.  Today was a great day for gold and silver but the precious metal shares lagged.  That is not a positive.  I'll be keeping an eye on it.  We'll watch the overnight action and see what tomorrow brings.

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