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Monday, December 06, 2010

The Dow lost 20 points today on light volume. Advance/declines were even. We are taking a needed pause as the S&P 500 stalls around the 1220 level. I would expect sideways to lower action for the next few days. I am expecting the market to go higher before December expiration. I have an OEX trade in mind. I will be looking to purchase some December calls at the end of this week or early next week. That is the game plan for now. GE lost a few cents today and the January calls I own lost a bit of ground. I'm sticking with them for now. I think in the long run this trade could pan out. But we'll see. Gold was up another $10 and more in the aftermarket. The XAU rose 3 1/2. ABX up 7/8, GG up 3/4 and NEM up 1 1/4. Volume was average. The dollar was higher and gold continued to rally. Perhaps the market knows something that we don't. Overbought here and staying there. I will get some gold share calls on the next pullback. The money just wants to come into gold. It seems as though there is no stopping that. Mentally I'm doing OK. This week should be a non-event if all goes as planned. A consolidation before we move higher. But I could be wrong and often am. I don't think we'll see a full fledged decline.

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