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Wednesday, November 28, 2007

Finally some follow through as the Dow gained over 330 points. Volume was good and the advance/declines were 6 to 1 positive. Huge rallies out of nowhere. I would not expect that to continue. However I do believe the worst is over for now. Today should turn the summation index to the upside. I don't think we will just go straight up from here. We have broken the daily down trend line on good volume. The next expectation would be a return towards that line. When that happens you can get some OEX calls. I will be looking to do that. Gold lost over $13 today. However the XAU rose 5 points in sympathy with the overall market move. ABX and NEM were both up, about a buck and a buck and a half respectively. Volume was OK, nothing special. I suppose that if I expect the market to rally here perhaps gold will go with it. But I'm not sold on that idea yet. Again, I'm not sure about gold here so I'm sitting it out for now. GE was up a buck on heavy volume and that is a good sign for the bullish cause. However we haven't broken the down trend line here as of yet. I would expect GE to pull back with the overall market in the days ahead. Mentally I feel fine, got a good nights sleep. There is still plenty of time on Decembers options. There isn't a rush to do anything at this point. I would expect sideways to down action for the next few days. Then perhaps another push to the upside. But that's a guess. The market will go where it wants.

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