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Thursday, October 25, 2007

The Dow lost 3 points today on very heavy volume again. Advance/declines were slightly negative. The market sold off again today after opening higher and then came all the way back. I don't know what to make of it but buyers are coming in from somewhere. Tomorrow should be interesting. Gold was up another $5 and the XAU rose 1 1/4. ABX and NEM were both up a bit but the volume was light. I did notice a lot of volume on the ABX puts for whatever reason. The gold shares march higher still. Perhaps I should just buy the calls. GE was a touch lower on average volume. It too sold off and came back again. Perhaps it is making a stand here and will not go lower. That's just a guess. Boeing was up 1 3/4 on good volume. This issue can get pretty volatile intra-day. I've just begun to watch it recently and it really moves around. The option prices don't always move with the underlying here, which is puzzling. But it looks good on the weekly if it can close around here tomorrow, so I'll continue to hold it for now. Also Microsoft reported after the bell and it is higher on good volume which should bode well for the overall market tomorrow. Mentally, I slept good and am well rested. It looks like the market will hold up here but looking ahead I would expect some weakness towards the end of next week. But you never know. We have the Fed next Wednesday along with the employment report on Friday. Also ABX and NEM report on Wednesday. So there will be lots of opportunities going forward.

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