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Tuesday, February 01, 2005

The trend is now up. We gained another 60 points on the Dow with 2 to 1 advance/declines. The volume was good. We have broken the downtrend line and the summation index has turned higher. Now I'm not saying it will be a straight line up but the path of least resistance is up now. Gold lost a little over a dollar and the XAU was up fractionally. ABX was down a few cents. The dollar index lost a little ground. The Fed will announce its decision on interest rates tomorrow. Should raise a quarter point again. Anything else will move the market pretty good. Not expecting that. My ABX options are losing money but not to the stop-loss point. At least the volume on the stock picked up today so perhaps interest is coming back. As for the overall market, I don't expect new highs anytime soon but the downtrend has ended. I don't have any other trades in the works for now but if we get too ahead of ourselves, I might consider a short somewhere. Not sure, in doubt and staying out. Gotta have patience and discipline. It's tough but that's the game.

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