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Wednesday, March 11, 2015

A drift lower today as the Dow fell 27 points today on average volume.  The advance/declines were positive though.  The summation index continues lower.  Still short term oversold for the major stock indices.  We should get some kind of short covering bounce but the question is when?  Retail sales out tomorrow and that could get things moving up or down.  The trend is down though.  GE bounced around but finished the day barely changed.  Volume was average.  The analyst conference didn't move the stock.  My GE March calls are in the red.  Perhaps they can get back to break even if we see a bounce.  But this trade should have ended a week ago.  Gold was off 10 bucks on the futures as the US dollar continues its climb higher.  The dollar is moving straight up.  The gold shares found some interest today.  The XAU rose 2 1/8, while GDX gained 1/2.  The gold shares are trying to hold at the lows of late last year.  Volume was good there today.  Mentally I'm feeling OK.  The RUT and the TRAN were up today, so perhaps we can get things moving higher tomorrow.  The breadth was positive today as well and that doesn't match up with a down market.  So we'll see.  It is a more volatile environment, that is for certain.  GE is trying to hold the 200 day moving average.  Whether or not it can will go a long way in the outcome of my trade there.  I still think that gold isn't the place to be at the moment despite todays bounce.  However the April or May calls could be the next trade but strictly on a short term basis.  We'll watch the action in the foreign markets and go from there.     

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