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Thursday, October 20, 2005

Volatility has returned. Perhaps the lows won't hold after all. Or it could be just an expiration phenomenon. The Dow lost 133 points today on heavy volume. Advance/declines were 3 to 1 negative. Crazy game. GE was off over 50 cents and the November calls I own are now losing money. I'm still a believer though. Long time relatively speaking there. Gold was down a couple bucks and the XAU actually fell hard and got to the uptrend line. I purchased some XAU November calls. It is now or never for this trade. My thinking is that the trendline will hold. If it doesn't, I'm out with a small loss. Hopefully, if I don't do something stupid. I perhaps could have gotten a little better price on the entry but you never know with those crooks on the Philly exchange. I don't really like trading there but I wanted a broader scope than just NEM or ABX this time. We'll see. Had to do it though because it was what I was waiting for. Oil seems to be breaking down here and perhaps gold will too. I don't know. It kinda has the feel like it could roll over and this trade will be a loser but we will have to wait and see. Another question is if the market itself will hold up here. Tomorrow will be interesting...

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