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Wednesday, May 12, 2010

The Dow continued to move higher today with a gain of 148 points. The advance/declines were 5 to 1 positive and the volume was average. The market has a feel that it just wants to go higher. It's as if last week never happened. I certainly don't know what the reasons are. We've worked off the oversold condition. I sold the OEX calls I had at break even. Though it feels like we're going to go higher, the option premiums were not moving like I had expected. I was lucky to just get out. This was a trade that I should never have attempted. We had a huge move in the right direction and these options didn't show a profit. Gold was up another $22 today. The XAU only rose 1 3/4. ABX was off 1/4, GG was flat and NEM up 1/2. Volume continues very heavy. I am going to hold off on a gold share trade for now. They are overdue to take a rest. But who knows? There's still 7 days left in the May option cycle. The dollar was up a touch again today. Mentally I'm feeling OK, slept well enough. I'm thinking about the OEX puts for my next trade, perhaps next week. Not exactly sure though. The McClellan oscillator is quickly heading back to the zero line. If we break through it, higher we will go. My thought is that we will stall there and head back down. But that's a guess. It is possible that we just go higher from here all the way through expiration but I doubt it. I'll be checking things over tonight and go from there.

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