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Tuesday, August 24, 2004

Another nothing day in the stock market. The Dow was up 27 points on light volume. Slightly positive advance/declines. I can't say that there is anything to move the market at this point. I now own some ABX September calls. My order got filled during the morning, unfortunately I now believe I am way early in purchasing these. The indicators aren't fully oversold. It looks like that there could be an inverted head and shoulders pattern on the US dollar here also, daily basis. I probably should have canceled the order earlier. I still think the trade will work but the entry may have been able to be done at a better level. We shall see. Gold itself got hammered today, down over 7 dollars. However the XAU was only off a couple points while NEM lost around 80 cents and ABX dropped about a quarter. Volume did pick up to the downside though, not a good sign. However with gold down so much these issues should have been clobbered, yet they hung in there pretty good. I'm still of the belief that this is a snapback to the downtrend line that was broken. Trading is never easy. End of summer here and there seems to be no interest in the markets. The Republican convention is in New York next week and there is talk of even lighter volume then due to the logistics. Things should pick up after Labor Day. Perhaps I should have had the patience to wait. There are always other trades though...

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