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Tuesday, October 28, 2008

An oversold bounce was expected but this wasn't. The market soared 890 points on what I'm thinking was good volume. I've been having trouble getting the correct NYSE volume again. Advance/declines were about 5 to 1 positive. We've formed a base in the last 3 weeks and I believe that it will hold for now. But you never know in a crazy market like this. Fed announcement tomorrow. I don't think it is as important as usual because the credit mess has taken on a life of its own. So we'll see. Gold was off a couple bucks but the XAU followed the overall market higher, up over 8 points. ABX up over 2, GG up 1 1/2 and NEM up almost 5 before its earnings announcement. There have been so many false up moves for the gold shares in the last few months that it is hard to believe that this could be the one that's for real. The Gold/XAU ratio is so blown out that the gold shares could rise 100% and it still would not be back to normal levels. The dollar did lose some ground today but only time will tell if it's the beginning of a sustainable trend. GE was higher by 1 3/4 today on heavy volume. My GE calls for December were finally filled but the options didn't do much even with a move of almost 2 points. Not exactly sure about what is going on in the option premiums but I think this is a trade that could work. Mentally I'm doing fine, slept well. Back in a trade again and I think I'll play it close to the vest this time around. My last few trades have been disasters but I'm feeling better about this one already. Which really doesn't mean anything. The market will go where it wants. So we'll get past the Fed tomorrow and go from there.

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