Friday, January 04, 2008
So much for getting OEX calls. I guess I finally got lucky yesterday when my order wasn't filled. The Dow sank today, off 256 points on good volume. Advance/declines were about 4 to 1 negative. The employment report was very weak and the markets didn't like that. The summation index has rolled over to the downside. That said we are extremely short term oversold. There will be a bounce within the next 2 days in my opinion. I might attempt to play it. We'll see. Gold lost around 3 bucks and the XAU lost over 4 points. ABX and NEM were both down and that was to be expected after the recent incredible run-up. I have an open order in for some NEM calls. I think that gold is the place to be even with the recent upside. That is where the money is going. I could be wrong. GE lost about 80 cents on average volume and closed near its low. Earnings out in a week but this issue has already disappointed. Mentally I am tired, not a good nights sleep again. The market is telling us that trouble lies ahead. The year end rally never materialized. Whatever the reasons this year has started out to the downside. It isn't a good sign for the bulls. Capital preservation will be the key. I think that is what's important now. It's possible that we have quite a way to go down from here, roughly around 600 on the OEX. Monday will be interesting but for now it's the weekend. Time to regroup and get some rest. Check the charts and come up with a game plan for next week.