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Thursday, February 18, 2010

Continuing higher for expiration week as the Dow gained 83 points on average volume. Advance/declines were over 2 to 1 positive. Summation index heading higher. I dumped my OEX puts for an 80% loss since I didn't place a stop order when obviously I should have. This trade was doomed from the start as I did not have the discipline necessary to wait until today to try something for the expected drop tomorrow. There is nobody to blame but myself as this trading year seems to be a continuation of last years disaster so far. I'll have to regroup. The market is short term overbought and staying there. I still expect a decent drop tomorrow but the puts I had are too far out of the money. Gold was down a touch today and up a bit in the aftermarket. The XAU rose 2 1/3. ABX up 1 1/4, GG up about 1/2 and NEM up a buck or so. Volume was good. ABX had nice earnings and the gold shares rode that to a positive day. The dollar was little changed today. Obviously getting some gold share calls for the February option cycle was the place to be. I had my chances but wasn't good enough, again. Mentally I'm a bit tired but not bad. Dealing with this latest loss will be the challenge. I probably should stick to trading the time frames that I've had some success with. Extremely short term trading isn't what I'm good at. I'll need to remember this going forward. So you sometimes have to take your lumps and move on. I've been doing that a lot lately. We'll see what happens with expiration Friday and go from there. I have no trades on the horizon and no new ideas at the moment.

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