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Friday, November 10, 2006

The Dow gained 5 points on light volume. Advance/declines were almost 2 to 1. We sold off and then came back. I had to dump the OEX puts. I would have liked to have held on to them but the market started to rally a bit and the overall market was strong even though the volume was light. The gain on the calls was minimum, about 30%. There was not a lot of money involved. There was more money in the losing ABX call trade as I woke up to be stopped out. Gold did not follow through and was down $7. The XAU lost around 4 points. The volume was lighter though. I lost around 45% on the ABX calls. I chased the move and was punished for being so foolish. You must always be on guard against yourself. Just because I had a nice trade earlier in the week I felt like I actually knew what I was doing. I didn't. ABX wasn't overbought but the XAU and gold were. I got caught up in the moment, when I should have waited for a pullback. It was a dumb move. I've had a lot of them this year. Option expiration week looms and there will be opportunities but it will be hard to trade with not much time left. I will have to come up with some type of gameplan over the weekend. Right now there isn't really a clear signal. I will have to check the economic calendar also. Perhaps it will be a time to sit on the sidelines. We'll see. Mentally I'm tired with such a busy week but I will move on and go from here...

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