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Thursday, April 07, 2011

Another large earthquake in Japan sent the Dow lower early but the market came back to just post a loss of 17 points. Volume was average and the advance/declines were negative. We've been moving sideways for a week. I expect that we'll break out to the upside sometime before expiration but that's a guess as usual. However the trend remains up until further notice. GE lost 20 cents on average volume. The April calls that I was looking at here got cheaper but I think that I will step aside from this trade. Of course that could change tomorrow. Gold didn't do much today and the XAU gained a point. ABX lost 3/8, GG up 1/3 and NEM gained 1 7/8. Volume was average. I lowered my entry price for the ABX April calls to take off a little more risk with only 6 days to go. I still expect ABX to try and break through the $55 level. However the timing is in question. None the less, I'm going to try and give this trade a go. The dollar closed little changed today. Mentally I'm doing OK. Time is running out for the April option cycle. Things get a bit more risky and dynamic. It is the nature of the options game. I'm still going to try and put on a trade here but nothing is set in stone.

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