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Thursday, December 01, 2005

Back to the upside today as the Dow gained 106 points on good volume. Advance/declines were 3 to 1 positive. The OEX calls I bought are in the black but they did not move that much. Disappointing. I am going to hold on for a while since there is just over 2 weeks until expiration. But this could be a tricky call. I might sell them next week and then buy them back in the final week. Way too far out to really know what is going to happen. GE did not move with this rally today and that is troublesome. Of course I still want some calls there so I feel good about that. But who knows? Gold rose over $6 today and the XAU bounced back over 3 points. Still overbought here but you cannot deny the move higher and I certainly want to participate. Gotta be careful though, there is way too much news coverage on this. Mentally I feel OK as my timing was almost right yesterday. But it is a dangerous game that I'm in here and I know it. Employment report tomorrow and we could head right back down. I've got to get some targets set up for this trade and also check the weekly charts. We are still overbought on the OEX so that's a problem going forward also. We did work off a little of that trin-wise in the last 3 days. Tough game and coming into the last month of the year. Tomorrow is important...

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