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Wednesday, October 06, 2004

The Dow continues to climb, up over 60 points today. Even with crude oil hitting a new high. Advance/declines were 2 to 1 positive and the volume was OK again. I'm laying off the OEX puts for now. I bailed out of my ABX calls today. I fear that I may have gotten out too soon. They do have 7 days left on them and the XAU closed strong, near the highs of the day. I sold half of them in the morning and then decided to just get out of the whole position. Gold didn't move much today and ABX was up a dime on good volume again. NEM was up 30 cents. The technicals are all way overbought on ABX and have been for a few days. I don't know how much longer that situation could go on. The profits were pretty good, I had twice as much as originally intended. But I can't help but think that this issue will continue to get run up into the expiration next friday. If we do get some type of pullback in the next couple of days I might be tempted to purchase some NEM calls for the last few days. That remains to be seen. Perhaps I could have just held on to half the position to see where it might lead. GE was up today and I was considering some calls before the earnings come out on friday. However the technicals really weren't clear on a buy signal and I haven't been watching it as closely as I should for a trade. Trading is tough. It is not an exact science. It is difficult and it seems I always second guess my moves. Honestly, I was happier with my exit on the recent failed OEX trade last friday than I am with my actions on this trade. I just have the feeling that ABX will ultimately go higher before the expiration. We'll see. Employment number on friday. Will possibly get short tomorrow.

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