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Friday, June 18, 2010

We ended the week on a whimper as the Dow gained 16 points on average volume. Advance/declines were positive. Overbought now and I got some OEX July puts today for what I believe to be a 2 day trade. In on Friday and out on Monday if all goes according to plan. The puts are right where I bought them. I expect weakness Monday. So we'll see what happens. I canceled the GE call trade because I did not want to hold it over the weekend. Might try it again next week. GE was flat today on light volume. Gold broke out to new highs today, up $10. The XAU rose 3 1/3. ABX and NEM both gained 1 1/2 on good volume. GG was up a buck on light volume. NEM has been the leader and is breaking out to the upside. I need to find a way to get long the gold shares. I may have to wait for a pullback to the breakout line though. It is dangerous to chase moves. The gold shares had a great move this week considering it was expiration week. A lot of money was made. Perhaps that will happen again in the future. I'd like to be on board when it does. Mentally I'm a bit tired, did not sleep well. So I've got the OEX puts for July and I expect to sell them on Monday for a profit. Volatility has slowed down so far in June and that could be the case going forward for the summer. It happens and is known as the summer doldrums. We'll see. It's Friday afternoon and time for some rest. I'll check the charts over the weekend and go from there. The summation index continues higher, so the trend is up. That is why this OEX put trade has got to be short term.

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