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Wednesday, February 06, 2013

The Dow finished the day with a gain of 7 points on average volume.  The advance/declines were positive.  We began the day with a good drop but managed to finish the session in the black.  That is a positive one day reversal.  We'll see if we get any follow through tomorrow.  Declines are being bought and that was the expected near term outlook.  The summation index has started to move sideways.  I'd still be looking for higher prices into the February option expiration.  GE was off a dime on average volume.  Sideways here as well.  I'm believing that it's a consolidation before we move to $23 here.  I could be wrong.  Gold was up $5 on the futures even with a stronger US dollar.  The XAU was up a point.  ABX, GG and NEM all had fractional gains on light volume.  Obviously, there is no interest at the moment in the gold shares.  My February ABX calls are losers and probably need to be sold this week before they expire worthless.  Mentally I'm feeling a bit tired.  I'm looking for another leg up on this extended stock index rally.  We are just about ready to break out higher in my opinion.  We've been moving sideways for about 8 days now.  Gold and the gold shares continue to disappoint.  That story remains the same.  We've got the ECB meeting in Europe tomorrow and that could be the catalyst for the next market move.  We'll keep an eye on that and see where it takes us.   

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