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Thursday, March 04, 2010

The Dow gained 47 points today on light to average volume. Advance/declines were positive. Short covering today? I don't know. The market action kept me from purchasing the OEX puts that I had wanted to get before tomorrows employment report. I did not want to take the risk. My ideal scenario now would be a positive day tomorrow and then a purchase of the puts on follow through upside Monday. But how often does the market do what you'd like? Summation index still heading higher. Gold lost $10 today and the XAU fell 2 1/4. ABX and GG had fractional losses, while NEM dropped a buck. Volume was average. The dollar had a good day. I'd be inclined to short the gold shares here but I probably won't. Perhaps if they build a multi-day top. Overbought on a daily basis there. Mentally I'm feeling good, slept well enough. So it looks like I will let the employment report pass and take it from there. 11 days in the March option cycle to go. So there is plenty of time to put on a trade. I'm trying to let the technicals line up for something here. If tomorrow is to the upside, then I think there will be a low risk opportunity to get short at the beginning of next week. If we drop tomorrow, then I'll have to look for something else.

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