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Monday, December 11, 2006

The Dow gained 21 points on lighter volume. Advance/declines were positive. I'd like to get some OEX puts here but there really isn't a good signal. That said, there is some evidence that we could be forming a top here. Sometimes you can't wait for a perfect set-up. This could be one of those times. The Fed meets tomorrow and we are basically on hold until their announcement. I will probably do something if I can get a good price. Gold was down a bit today but the XAU rose over a point. I did put in an order for NEM calls, it didn't get filled and I canceled it. The open interest did expand pretty good on Fridays heavy volume. There was some good volume in those calls again today. However the volume in NEM itself was weak and it rose around 30 cents. I'm not sure what to do here. I might just sit it out. The trade number comes out tomorrow morning and that should be a dollar mover. The dollar was weaker today. There are only 4 days left on the options. The risk for whatever trade I do here is extremely high. Mentally I'm trying to do the right thing. That could be no trade at all. I will check the various charts tonight and take it from there. There is also opportunity here if I can find it. I certainly don't want to lose any money here. We'll see what happens.

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