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Thursday, September 29, 2005

The Dow was up about 80 points on average volume. Advance/declines were 2 to 1 positive. Overbought now here for sure. Would expect sideways action into next Fridays employment report. GE was up 15 cents and the options I own didn't move. We'll see about this one. Gold was up near the highs today and I shorted the XAU. The XAU was up a couple points and I fear now that I am early as we have come out of what could be a consolidation implying higher prices. The volume was good for the gold shares. Then why did I do it? It looks like there could be a divergence on the RSI. Higher prices and a lower RSI. Time will tell but I don't know. I also read something about the fact that the XAU is ready to turn around. I'm hoping that the article did not influence my decision today but it may have. You can't go by the bullshit that you read somewhere. You gotta go with the technicals. They were hyping gold again on CNBC so that is a contrary sign for me as well. End of the month tomorrow and don't know what that means really until it happens. Perhaps funds will lock into some gold profits. Perhaps they will add gold to show they own some winners. Overbought there though so we'll see. No specific target yet but I guess I can hope that the trendline breaks. Good Luck. Mentally I'm doing better with a good nights sleep and I'm getting back to the basics that have worked in the past. Like reading my blue book in the morning to get in the right frame of mind to trade. We'll see how it goes.

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