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Friday, March 23, 2012

A slight bounce to close out the week as the Dow gained 34 points on light volume. The advance/declines were better than 2 to 1 positive. The summation index continues heading lower. The technicals for the stock indices have rolled over but they are still overbought. We will have to see if this recent decline is bought as all the previous declines have been. Still 4 weeks to go in the April option series. I have no OEX trades in mind but I still have to be looking for higher prices going forward. I could be wrong. GE was flat on the day and the volume was very light. I am still looking to be a buyer of the May 20 calls at the right price. My thinking is that this trade should be put on before the mid-April earnings announcement. Preferably with oversold technicals. Gold had a good day for a change as it rose about $20 on the futures. The US dollar was lower yet again. Interest rates in the US have risen in the past couple of weeks yet the dollar fell. This is not the normal expectation. I do not know the reasons. The XAU gained 2 7/7. ABX up 2/3, GG rose 3/4 and NEM higher by 7/8. Volume was light to average. My ABX April calls are in the black. I should probably be selling these next week but we will have to see what happens. I really do need a winning trade though, just for the confidence factor. However I don't want to sell too early either. The game is never easy. Mentally I'm doing the best I can considering my computer problems and moving onto the back-up. Like anything else you just have to make the adjustments and keep on moving. End of the month coming next week. I'll be keeping an eye on GE for a possible entry point for the May calls. Plenty of economic data to digest as well. I'll need to come up with a solid game plan for the ABX call trade. Checking all the charts on various time frames must be done as well. But for now it's Friday afternoon and time for a break.

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