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Monday, September 15, 2014

A very mixed market today as the Dow gained 43 points on light volume.  The advance/declines were 2 to 1 negative.  The NASDAQ got slammed but the big caps held up well.  The weaker action in the small stocks isn't bullish.  The summation index continues lower.  I sold some of my September OEX put position for a 95% loss.  I'm still holding the closer to the money puts.  I think that despite option expiration we will be heading lower this week.  I could be wrong.  GE was up a few cents and the volume was very light.  It looks like my September GE puts will expire worthless.  Inexcusable.  Gold was up three bucks on the futures.  The US dollar finished the session little changed.  Ditto for the XAU.  ABX, GG and NEM had fractional moves one way or the other with light volume.  I sold the October ABX calls that I had for a 95% loss as well.  I'm considering the January gold share calls now.  I may attempt that trade if and when gold gets to the $1200 level.  Mentally I'm feeling OK.  Oversold on the major index short term technicals.  Waiting on the Fed which will have their statement out on Wednesday.  The fact that the small stocks had such a lousy session is perhaps a clue of things to come.  However the market could just as easily turn around tomorrow.  It is not an easy game to play.  I have a new set of trading rules that perhaps I'll share at the end of the week.  Like I've said before, following them with strict discipline will be the key.  Otherwise they are worth nothing.  At least as I liquidate the losing trades, it will give me a clean slate to perhaps start doing things correctly.  Gold remains in a down trend and not interesting to anyone unless they are short.  The strong US dollar has taken care of that and the price of oil as well.  In fact all of the commodity complex is under pressure.  We'll keep an eye on the overnight developments and go from there.

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