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Tuesday, February 08, 2011

Higher and higher we climb as the Dow tacked on another 71 points today on light volume. Advance/declines were positive. Overbought and staying there but that has been the case since this rally began. We've had some slight pauses along the way but that's about it. The trend remains up until further notice. GE gained 3/8 on average volume. It too has climbed and remained overbought for weeks on end. If we pull back to the daily up trend line then I may try the March calls. Otherwise it will have to be the sidelines there for now. Gold had a good day, up $15. The XAU gained 3 3/4. ABX rose 7/8, GG up 1 3/4 and NEM was higher by 1 1/8. Volume was light here but you cannot deny the price action. We're short term overbought now. I still might try the February ABX calls if we see some down to sideways action. However I'm not exactly sure it's the right way to go. Obviously yesterday was the time to try GG but it is always easy to look back and be correct. The dollar was weaker during the day but made a comeback. I'll need to keep an eye on it since we are near a critical point there. That could be the key as to what happens to the gold market here. The weekly gold share charts look bullish at the moment. That must be kept in mind as well. Mentally I'm feeling OK. Only 8 days to go for the February options. So the risk increases with each passing day. But like I've said before, if a decent signal comes up, I'll give something a try.

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