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Wednesday, December 12, 2018

A rally to start the day but it tailed off again.  The Dow did gain 157 points on good volume.  The advance/declines were almost 2 to 1 positive.  The summation index is trying to turn around again.  I think that the market is being held hostage by the Brexit drama out of England at the moment.  We did expect a bounce and got it today.  Whether or not it has any staying power remains to be seen.  Volatility still rules the day and with that backdrop no rally is safe.  The usual seasonal bullishness is absent and that is a problem for the bulls.  GE was off a nickel and the volume remains heavy.  Gold was up a bit today as the US dollar was lower.  The XAU added 1 1/2, while GDX rose 3/8.  Volume was good.  The gold shares are overbought and staying that way.  If GDX can get through 20.5 there should be more room to run.  Mentally I'm still a bit off, not feeling well again.  I'm tired with some kind of cold or flu and the concentration just isn't there.  I'll be cutting the blog short again but the basic bearish theme remains.  Europe and Asia rallied overnight.  We'll see what comes out of England tomorrow.

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