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Friday, September 26, 2008

Opened lower and closed higher today for a one day bullish reversal in the Dow. We gained 121 points on OK volume. Advance/declines were over 2 to 1 negative though. So we are still waiting for some kind of government bailout. It will get done it is just a matter of when. The market reaction to that will be telling. It looks like a rally would take place but that 's just a guess. Trying to trade it isn't the smartest thing to do. No decent signal for the OEX as yet. Gold rose around $6 today but the XAU dropped 3 points. ABX was up 1/2, GG lost a buck and NEM fell 1/2. Volume heavy there again. ABX continues to show incredible relative strength among the gold share issues. Perhaps that will have to be the next play. I'll be looking to buy weakness if there is any early next week in ABX or GG. GE was off 1/3 on average volume. Nothing doing there for now. Mentally I'm doing OK. Remained on the sidelines this week and that was the idea. Now next week I will be looking to do something. What that is exactly remains to be seen. The weekly gold share charts will not be looking bullish after this weeks action. So caution is advised. A lot of uncertainty out there on all fronts at the moment. We'll see what happens. Oil was lower today and the dollar a bit higher. Now what happens there after the bailout? A lot of questions but no answers for now. Nothing wrong with waiting it out really but you won't make any money. However you won't lose any either. The weekend is upon us and a break is in order.

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