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Thursday, April 14, 2011

The Dow had a one day reversal to the upside as we gapped lower on the open and came all the way back for a gain of 14 points. The advance/declines were positive, while the volume was average. My OEX calls got killed in the morning but made somewhat of a comeback during the day along with the overall market. They are in the red though with a day to go. I probably should have just sold them at the close and taken that loss today. But we are still oversold and the bounce is not happening. That could mean bigger trouble for the indices. Google reported poor earnings after the bell and that doesn't bode well for the open tomorrow. An oversold market that doesn't show some upside is dangerous. The summation index continues lower. GE was flat today on light volume. We are right at the $20 strike price. Gold had a good day on the weaker dollar. The precious metal gained $17. The XAU rose 2 1/2. ABX, GG and NEM all gained around 1 1/4 on OK volume. The move in the gold shares today is what I was looking for in the Monday ABX call trade. Timing is everything as always. I don't think that I'll chase the gold shares here. The weekly charts are just about overbought on the technicals. But we'll see. Mentally I'm doing OK. I almost sold the OEX calls at the close today as well after I heard the bad news on Google. With only one day to go, the odds of this trade turning a profit are not good. But I didn't dump them and I'll probably feel the pain tomorrow. More inflation data out tomorrow and todays report wasn't good. Plus option expiration. We'll see how it goes.

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