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Tuesday, February 02, 2010

We continue higher as the Dow gained 111 points. Advance/declines were over 3 to 1 again and the volume was light to average. We are getting a snap back as I had hoped we would. But could it be more than that? Maybe. I'm sticking with my bearish scenario though and will look to get some OEX puts on strength tomorrow. It won't be easy to do but I'm going to give it a try. Summation index still pointing down but will be trying to turn around soon if the positive activity continues. However the premiums on the OEX puts remain much higher than the calls and that was the case before the previous decline. Gold continued higher as well, up $13 on the futures. The XAU could only manage a half point gain. ABX, GG and NEM had fractional moves one way or the other on average volume for lately. The dollar fell a bit again. Might try the gold shares again to the plus side but it won't be until next week. Mentally I'm a bit tired, did not sleep well. I'll be concentrating on the OEX for now and it's a much faster game than the gold shares. The game plan remains the same and that is to be short going into the employment report. If we get some follow through upside tomorrow morning, that could be the opportunity that I'm waiting for. Or not. It's never easy but I have to follow my convictions here and see what happens.

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