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Monday, December 01, 2008

It was a rough start to the week as the Dow got clobbered, down 680 points. Volume was average and the advance/declines were 6 to 1 positive. We were short term overbought and due for a pullback. However with a move like this it's hard to make out what's coming up ahead. Doesn't seem like there is any good news on the horizon but you never know. Employment report on Friday. I'd like to get some calls when the time is right however that may not be until next week. Gold lost over $40 today as it seemed like it was a sell everything to raise capital event again. The XAU shed 12 1/2 points. ABX, GG and NEM were all down around 3 bucks on average volume. Sure, I'd like to get some gold share calls but at what level is the question. Plenty of time left in the December option cycle. GE lost 1 1/2 on average volume. I may go out to the January calls here if I buy them again. I'm pretty sure that I will unless we just go into a free fall again. Can't rule anything out in this kind of market. Mentally I'm doing OK, slept well enough. Has the volatility returned? Did it ever leave? It's an interesting market to try and trade. However, interesting doesn't necessarily mean profitable. I'm going to try and be patient here but you never know.

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