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Thursday, August 04, 2005

The Dow lost 87 points today on good volume. Advance/declines were over 2 to 1 negative. The summation index should be turning down here. Employment report tomorrow. No OEX trades for now. I did pick up some NEM calls as it fell back today. Don't know if this is the smartest thing to do but it appears to be a breakout. I have an order for some more if it falls again tomorrow. Gold was up a bit today. It seems to be overbought but perhaps will stay there as happens in good upmoves. But it could be wrong also. The trade is already underwater. We'll see what happens. I am tired and really need to get back to focus. I think this trade will be OK before expiration, which is in 2 weeks. Risky, yes. I'll have to be quick to take a profit. Easier said than done sometimes. Tomorrow I'd like to see NEM come back on good volume. But that's a hope and not reality. The XAU has broken out though and so has gold. NEM should follow and that is the basis for this trade. More tomorrow...

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