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Thursday, October 25, 2012

Got somewhat of a bounce today as the Dow gained 26 points on average volume.  The advance/declines were positive.  The day started with a nice rise but then the sellers took over for most of the rest of the day.  We're still short term oversold.  We should move off of the GDP report tomorrow.  Which way is anybodies guess.  GE was flat on the day with average volume.  We have at least stopped going down for now.  No trades for GE in mind at the moment.  Gold gained $11 on the futures and the dollar was a bit higher as well.  The story was in the gold shares as the XAU gained 4 7/8 on a strong earnings report from GG.  ABX and NEM were up a buck, GG soared 2 3/4.  The volume was light though, however you cannot argue with the price movement.  I still have the open order in for the January ABX calls.  Earnings are due for both ABX and NEM on November 1st.  I will probably want to own the calls before then if todays market action in GG is any indication of the future.  Or perhaps I'm too late once again.  Mentally I'm feeling tired, did not sleep well.  The summation index continues lower but there is the possibility that if we rally tomorrow that the decline is over.  That's a guess as usual.  There's still a chance that we could unravel as well.  That is the type of market environment we are in at the moment.  There is no clear picture but we have moved lower lately.  Gold has held the level of $1700 so far and that would be a positive going forward if we can hold up.  I think the gold share calls can still be purchased for ABX.  Perhaps tomorrow if we see some weakness. 

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