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Afternoon Snack



It is a pretty quiet day across the board here. As the market ticks higher the Biotechs, HMO's, and Oils lead the way. Away from that, I am not seeing much. One thing I do want to touch on is Gold. Gold continues to highlight publications and peoples' conversations. I have been talking about it here for quite sometime and I don't think it is a secret as to what side I have been on.

Recently all I am hearing is Gold, Gold, Gold! Gold is in BusinessWeek, in the WSJ, on CNBC and now non-market professionals are beginning to get involved. To cap it all off on December 4, which is in two days, the addition on the GLD will begin trading on the AMEX. This is the Gold Holders ETF. It will allow people to trade a basket of Gold stocks as one individual security (the same way you can trade the SPY to get S&P 500 exposure). I don't know what this all sounds like to you, but to me it sounds like a frenzy. Frenzies can last for a long time. Usually much longer than skeptics funds can last! Does that mean Gold is topping? I have no idea. Simply put, there certainly is a lot of attention on Gold. Yes I know it is newsworthy that it is making 7-year highs! That the USD keeps falling and that Gold is a safe haven. While I am making no estimation which direction Gold is going, I thought I would bring this to your attention and let you draw your own conclusions.

On a separate note, I did receive some questions in regards to my statement this morning to the market moving higher on volume that is less than massive and my take that it is a bullish sign. I will not deny that I love seeing a major technical level broken coupled by massive volume. However, in regards to the broader market, my view is different. As we creep higher on impressive, but not massive volume, the skeptics are less than likely to throw in the towel. In this case the bears. So as we keep moving higher they will point to the lack of volume to rationalize short positions. This also works against the bulls as well. Many bulls are waiting for a "pullback" that has not occurred in the past nine months to enter the market. Keeping that in mind, what happens when we do see massive volume in the market? Well, I will allow you to put it together!

positions in various pharmaceutical and gold stocks

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