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Tuesday, October 03, 2006

The Dow was up 57 points to a new all time high. Volume was good. Advance/declines were slightly positive. That is the problem here. The overall market is not confirming the move in the Dow at all. That is why I bought puts and the situation hasn't changed. This market will fall but my timing was off. The indicators just remained overbought as they are now. But it will happen. Gold got pounded today, down over $20. The XAU lost over 8 points. Volume was heavy as money continues to pour out of commodities and into the stock market. Oil was down big too. I think a recession is coming but the market doesn't think so. Mentally I'm sitting tight, waiting to take my big losses. It's only Tuesday so we will have to see how the week closes out. Employment report on Friday. The market continues to defy the indicators. Just how long can that go on?

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