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Tuesday, April 03, 2007

The Dow rose 128 points today on average volume. Advance/declines were about 3 to 1 positive. My thinking is that this wasn't the strongest rally that I've seen for up over 100. I'm just not believing that it is off to the races. Oil was down today and the economic reports came in a bit stronger than anticipated. I'm looking for a spot to buy OEX puts sometime next week. Gold lost a couple dollars today but the XAU rose almost 2 points in sympathy with the overall market. The volume was nothing great. ABX was up but sold off at the close to gain around 30 cents. I am still holding the options. The trouble now is that with a couple of up days it makes it seem like this trade can actually work. If we close higher for the week it might but there are no sure things and the technicals are back in overbought territory. I'm going to have to think real hard about closing this trade and taking the loss. That is probably the thing to do, especially if I think we are going to head down sometime next week. Mentally I'm feeling well, got a good nights sleep. I did stay away from GE and it barely moved today even with the market doing so well. My thoughts are pretty clear on staying away from marginal trades, as that one would have been. But that could change with the ongoing battle with myself. Don't really know what to make of tomorrow but we probably need a little rest. We'll see.

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