Monday, December 31, 2007
We ended the year on a downer with the Dow losing 101 points. Advance/declines were negative but not as much as you would expect with a down 100 market. Volume was light. I would like to get some OEX calls here. We are moving to oversold. I expect a New Years rally on Wednesday. But I haven't been right about much lately. If we sell off on Wednesday, I'll get the calls. But more than likely, I've missed it. Gold lost about $5 and the XAU was off 3 points. ABX and NEM were both down on light volume. Gold calls? I'm thinking about it but I think the OEX might be a better trade. We'll see. GE lost 30 cents on light volume. I dumped the calls for another loss which simply added on to the horrible trading year that I've had. Better to start the new year flat with no 2007 hangover trades. Mentally I feel fine although I am not totally sure about the market here. We should have had some type of rally here and we haven't. It is unusual and I don't know what it means really. I do think OEX calls will work here near term. But I'm not 100% sure. When in doubt, stay out? Maybe. It's been a terrible trading year for me but things can't get any worse. It'll be back to the basics and smaller trading size until I can get into a positive trading mode. Focus and discipline must return. I for one am glad to put the 2007 trading year to rest. Time to look forward to 2008. Happy New Year!