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Thursday, August 11, 2005

The Dow rose over 90 points on average volume. Advance/declines were over 2 to 1 positive. The overall market did not seem to be as strong. So I'm not believing this rally for now. Might possibly look for a short here. Oil got above $66. Gold soared over $8 and I don't know why. However it confirms that the breakout was valid. The XAU was up about $4. NEM rose over a dollar on heavy volume. It is for real. All my NEM calls are profitable. Now must decide when to get out and where to place the stop-loss order. It never gets any easier. We are about overbought on the RSI indicator but the stochastic has further to go. Weekly allows for more room also. NEM barely through the weekly downtrend line. The XAU broke through earlier so I have to figure NEM will too. 6 days to go on these options. I'm thinking we can get to $42.50 but I'm certainly not sure of it. Trade number tomorrow and after a day like this it won't matter much. I'll expect some profit taking. I'm also thinking gold is signaling inflation that has yet to appear. We'll see. My mind has many things on it but I've got to focus on this trade for now and forget about everything else for now. I should be able to do that, I hope. The game is never concise and exact. You've just got to do the best you can and be happy with that. Don't shortchange yourself or second-guess things. Just give it your best shot and see what happens. Tomorrow looms...

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