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Thursday, January 06, 2005

Well, we got a little bounce today. And I do mean little. The Dow was up 25 points on positive advance/declines. The volume was good but not as much as on the recent declines and that is troublesome. The employment report is out tomorrow. There will be a good move. However the tone of the market isn't bullish and I fear the results. Only because I own calls. GE was up about a quarter today, bouncing off its 50 day moving average line. It has to hold that line or I am dead. The volume there was average. 2 weeks until expiration and the earnings report. Tricky call. I have too much money in this trade. Hindsight is everything. It's my own fault. I should have never purchased those last 20 calls. The gold shares are still falling and the volume isn't what it used to be. Gold has broken down. The dollar is starting to stabilize. Had to figure that would happen after everyone and their brother was bearish the dollar. Summation index pointing down and the McClellan oscillator was below -200 yesterday. Not a good sign. But perhaps we have washed out and can get something going soon. I don't know and I'm not sure. My tech plays of Intel and Microsoft aren't moving and I guess I'm glad I didn't lose too much there. My call/put ratio is getting bullish but not as good as I have seen it in the past. Anyway, this was a tough way for the market to start the year. Tomorrow should be interesting...

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