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Wednesday, January 26, 2011

There weren't any changes from the Fed and the Dow managed a gain of 8 points. The overall market was much stronger that the Dow. Advance/declines were 2 to 1 positive. There is still nothing on the horizon to derail this market. We are getting short term overbought again but it hasn't mattered lately. The trend remains higher. GE lost 6 cents on average volume. I'm still hoping to eventually get some March calls there. The gold shares were the story today. Gold was up $10 and the XAU rose 7 1/4. ABX gained 1 2/3, GG up 1 1/2 and NEM rose 1 1/8. Volume was good. We were very oversold and due for a bounce. The dollar was lower again today. I did not get filled on my open order for the ABX calls. I canceled the order. I'll try again if we get some weakness in the next few trading sessions. I do still want to get some February ABX calls, however the opportunity may just have passed. We'll see. Mentally I'm feeling good, slept well enough. The continued strength in the stock indices has been nothing short of amazing in my opinion. The rally that started in the beginning of September continues unabated. It won't last forever. We are overbought both short and medium term. It would be much better for the overall health of this bull market if we got some sort of 10% correction. Hasn't happened though. I am keeping an eye on the gold shares and am hoping today was just a bounce. I still want to be able to try the February gold share call trade. But the market doesn't always accommodate your wishes. I'd expect tomorrow to be flat all around, waiting for Fridays GDP report.

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