Friday, December 14, 2007
The week ended on a down note with the Dow off 178 points. Advance/declines were over 3 to 1 negative and the volume was light. The inflation data was higher then expected. We closed near the low of the day. I bought some OEX calls for next week but I'm thinking I could have waited until Monday. We are short term oversold however the summation index might be heading back to the downside after todays action. It's a tricky call. Gold lost 6 bucks today on a stronger dollar. The XAU lost 2 3/4. NEM and ABX were both down on light volume. Gold has lost its luster for the time being. No trades there for now. GE lost over 50 cents on average volume. Unless we get a decent rally in GE next week, this trade is dead and I will be exiting. We closed just below the weekly up trend line and that is not a positive. If however GE can get moving to the upside next week, I'll probably stick around a bit longer. But it doesn't look like it at the moment. Mentally I'm feeling OK. I still have a feeling that we are setting up for a rally into next year but I could be wrong. I didn't like the way we closed today for the bullish case. Monday will be important if things are going to turn around. There are only 5 days left in the option trade I initiated today. That isn't the smartest thing in the world to do. So we'll see what happens. It's time for a break and then check the charts over the weekend.