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Tuesday, October 28, 2014

Powering higher as the Dow gained 187 points on good volume.  The advance/declines were 5 to 1 positive.  The summation index continues higher.  The stock indices continue their straight line move up from the lows.  I got stopped out on the November OEX put trade for a 45% loss.  I then preceded to move to a closer to the money strike price for the November OEX puts and purchased them.  This was a mistake as the market simply continued to move higher.  I have the stop loss order in and it will probably be hit tomorrow at this pace.  I think that I have fallen in love with the idea to be short for the Fed announcement and that isn't the way you need to trade to be successful.  We are short term overbought but it hasn't led to any type of decline.  The trend is up and calls are what you should be buying.  GE was up 1/3 on better volume.  Perhaps the time to get the March GE calls has passed.  Gold was flat on the session and the US dollar was off a bit.  The XAU gained 1 1/4 as the gold shares finally rose when gold did not.  ABX, GG and NEM all had fractional gains on light volume.  Perhaps the gold share calls before the earnings was the better trade here.  But it doesn't matter now.  I'm in what I'm in.  Mentally I'm not happy with todays trade.  I really should have just moved to the sidelines and waited for a better technical set up.  The trade won't lose a lot of money but the inability to do what is necessary is the problem.  I think also I was anxious just to have another trade going and that is a recipe for disaster.  The battle usually lies within oneself and I lost that battle today.  The TRAN hit an all time high today so overall higher prices are coming.  The small stocks are acting great here as well.  There is nothing near term to derail this rally.  Perhaps the Fed won't mean anything at all tomorrow.  Waiting on the gold share earnings but the trend is down and the fundamentals are lousy.  We'll see what happens tomorrow. 

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