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Friday, March 20, 2009

A lower expiration as the Dow lost 122 points on good volume. Advance/declines were around 3 to 1 negative. Weakness here was expected as we were quite overbought. I don't think it's the beginning of another leg down but we might test the lows. However I don't want to forget that the trend is now up. The OEX puts I sold yesterday doubled from where I sold them. I couldn't take the risk with only a day left. You have to live with your decisions and move on. Gold lost a couple bucks today and the XAU dropped 1/3. ABX was flat, GG up 40 cents and NEM gained more than a buck. Volume was average. NEM has been leading the way and continues to do so. I'll be looking at getting some April calls next week if we get a pullback. My plan for now is to be long the gold shares before the employment report in the first week of April. Gold had quite a move this week and I would expect it to take a rest before the next leg up. I could be wrong. Mentally I'm feeling fine, slept well. We are moving into the April option cycle. Sometimes the April time period is a sideways event. I'll need to watch out for that. I'll check the charts over the weekend and go from there. Time for a break.

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