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Wednesday, February 09, 2011

We traded lower for most of the day but the Dow rallied in the final hour to finish with a gain of 6 points. Advance/declines were negative and the volume was light. The overall market was weaker than the Dow. We're still overbought so I do believe some type of decline is imminent. If only because we've been short term overbought for a few days. This market continues to just simply move higher and that can't last forever. GE was flat on average volume. No trades there for now. Gold was flat today but the XAU lost 3 1/2. ABX and NEM had fractional losses on light volume, while GG gained 1/8 on good volume. GG had some positive news yesterday, which helped explain its good gain and heavy volume in the previous day. The dollar was weaker today. I again placed an order for the February ABX calls. I am not sure that I will do this trade because the technicals are not exactly where I want them. However, I do believe that it could work via the earnings announcement next Thursday. We'll see. Mentally I'm feeling a bit tired today, did not sleep enough. Nothing seems to derail this rally. All declines are being bought. The indices continue to grind higher, with todays downward price movement being an exception. But even today we closed well off the lows. So you can't fight it. I'll try the OEX February calls for next week if I get the chance.

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