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Tuesday, April 18, 2006

Did I say something about buying calls yesterday? I was too busy watching NEM and have missed a good trade in the OEX. Hindsight is easy, isn't it? The Dow rose 195 points today on heavy volume. Advance/declines were over 3 to 1 positive. OEX calls that I was looking at quadrupled. I didn't have the necessary focus to make that happen. I really needed to pay more attention. It is something that needs to be worked on. You just have to be on the ball and do the work necessary if you want to be successful in this business. There are no shortcuts. That's why it is so tough. And that's why hardly anybody can do it. You just gotta do the work, day in and day out. You've got to be on top of things. Any other type of effort just won't cut it in the long run. Most people are lazy and that is why most people fail. Gold was up just a touch today. The XAU rose 3 points. NEM was up around 80 cents and fell off from its highs. The calls I own are profitable. We are not completely overbought yet. I do expect weakness tomorrow ahead of the earnings. It will all depend on Thursday morning for this trade unless something drastic happens tomorrow. The other metal companies have announced great earnings and have risen on the announcement. That is what I am counting on for NEM. It doesn't mean that it will happen. But I'm trying to play the percentages for this earnings cycle. If we were completely overbought I would bail out early. But we're not so there is a chance this could be a great trade. Getting back to the overall market, I should have been paying attention. I'm not going to beat myself up over this forever but the fact remains I missed out. Risk is part of the game and I should have taken one there. I need to be able to handle more than one thing at a time. The focus needs to return. We'll see if we get any follow through tomorrow and we will wait for the NEM earnings on Thursday.

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