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Monday, February 07, 2005

We didn't do much in the stock market today. The Dow was basically unchanged on light volume. Advance/declines were even. Not much news out this week. I think we have a shot at heading lower soon. Not a big decline, just not going up as we have lately. Gold was unchanged but the dollar moved higher and the gold shares fell. We are now at 85 on the dollar index and this is the level that I feel marks a top. I purchased some more ABX calls today, going out to April. The XAU is at the uptrend line of many weeks. It is now or never. It either holds here or these trades are losers. I should have waited until today to purchase calls but there is nothing I can do about it now. We are at the moment of truth. The volume was good on the gold shares today and my thought is that today was the last of the sellers. Time will tell on this but we are oversold and this is the logical spot to enter the trade. Trade number comes out on Thursday and we could get some movement one way or another off of that. That's about it for today. If I'm wrong on the dollar and gold then I will be stopped out for a loss. I'm surprised it didn't happen today.

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