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Wednesday, December 03, 2008

The Dow continues higher, up another 172 points on average volume. Advance/declines were positive. The price action has been constructive since the Monday meltdown. However I do expect prices to fall in the next 2 days. I would be very surprised if they did not. But what do I know? Summation index heading higher. Employment report on Friday. I'll be getting long on any pull back. Gold lost $12 today and the XAU fell 4 1/2 points. ABX and GG were both off over a buck and NEM lost almost 3. Volume was average. Yes I'd like to get some gold share calls but they did not participate in todays rally and that is troublesome. So I'll hold off for now. GE was up about 50 cents on good volume. I'll probably look to go out to the January calls if it ever corrects a bit. Again, the relative strength is there. The volume is there. GE is going higher. Mentally I'm doing OK. My work suggests lower prices within the next couple of days. If that occurs, it's a chance to get some calls in my opinion. I think that the employment report could be the trigger for a downside move. So we'll see.

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