Wednesday, January 16, 2008
It's rock and roll on Wall Street as we're down, up and down. The Dow was all over the map today and closed off 35 points. Advance/declines were about even and the volume was extremely heavy. Considering the bad news in the tech sector, it could have been a lot worse. But it is a volatile environment. Trading can be very good or very bad in a hurry. I'm doing my best to sit it out this week but I'm always battling myself. Did want to get OEX calls at one point, watched them double and then end the day lower then the purchase price. That's the kind of thing that's going on at the moment. Gold dropped $20 and the XAU lost 9 1/2 points. It almost looked like another buy signal would occur. ABX lost almost $3 and NEM dropped over $2, both on heavy volume. I would like to get the March calls on those eventually to get the earnings report movement. The timing might be tough though. The dollar was stronger today and it looks like a double bottom could be in place there. Patience for now. GE lost a 1/4 on heavy volume. It was up over a half at one point. Friday will be interesting there. Mentally I'm feeling OK. Also wondering when the markets will settle down into a more normal pattern. We are still oversold and have stayed there for quite some time. I'm getting trin readings that are off the charts. I would expect a pretty good snap back rally at some point. But that's a guess with the way things are going at the moment. Preservation of capital is not overrated.