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Wednesday, February 04, 2009

The Dow lost 121 points on average volume. Advance/declines were negative. It wasn't as bad as it looked as the overall market was stronger than the Dow. So we are really at a point of indecision going into Friday. I think tomorrow won't see much one way or the other. Friday will be the key. I'm leaning towards the downside for the direction but have no trades in mind for now. We're more oversold on a short term basis. So we'll see. Gold was up $10 and the XAU rose 3 1/2. ABX, GG and NEM were all up over a buck on OK volume. I canceled the open order for the GG calls and am thinking of switching to ABX. We aren't really oversold here though. I think if gold does break out to the top it will take off in the short term. We are at resistance for the gold shares and have moved sideways. I think the prudent thing to do here would be to wait until the employment report comes out but you never know. The dollar was stronger today and gold went up anyway. That cannot last forever. Mentally I'm doing good, slept well. I'd like to put a trade on here. I'm trying to be patient. I'll look over things tonight and go from there.

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