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Monday, November 01, 2004

The Dow was up 20 points on light volume. Advance/declines were mildly positive. Election Day tomorrow. All are calling for a rally when the election has ended. We are overbought here and quite so. I'm looking for a pullback. It doesn't have to be a big one but a pause is due. When everybody is calling for a rally, it just doesn't usually happen. We'll see. GE was down a few cents, the options are still showing a profit. This is a long term trade which I must remind myself. Gold was down a buck and a half, ABX and NEM were both down over 50 cents. Those stupid ABX puts I have are showing a profit. It's possible that the XAU will break an uptrend line here and that would bode well for those options. It's still a dumb trade. Pfizer was down around a quarter and the open order remains. I might cancel it before the close tomorrow. Will need to check the charts. 3 weeks before expiration so now is the time to look for the opportunities. OEX puts perhaps for the short term. We have an employment number on Friday and the Fed next week. Not sure any downturn has lasting ability here so I'll play it careful for now. Perhaps will look for the Gold calls near the Fed meeting or before, depending on how it plays out before friday. Kind of in a holding pattern until wednesday but you never know.

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