Wednesday, January 09, 2008
Well we got a bounce on extremely heavy volume. The Dow rose 146 points. Advance/declines were positive. Is this the start of something big to the upside? I doubt it. We are still below the daily down trend line. Getting through that would be constructive to the bullish cause. I still have the OEX calls but probably should have dumped them for a small loss today. I will be looking for some follow through to the upside tomorrow morning. If we get it, I'm out. I'm out anyway unless we break through the down trend line and that isn't going to happen. The timing going in was wrong and that's the story of that trade. Gold didn't do much today but the XAU gained a point and a half. ABX and NEM were both up on good volume but the moves weren't anything like they have been. I almost bought the NEM calls back again but NEM isn't acting as well as ABX as I've said before. I really think that I need to go out to next month on those, so we'll see. The dollar was up a touch today and appears to be perhaps putting in a bottom here. It isn't going straight down anymore. However I do want to own some gold shares ahead of the Fed later this month. GE managed a 30 cent gain on good volume. The $35 calls perhaps? I'll do my best to stay away from that issue. Mentally I feel OK. Would have liked to get a bit more sleep. The question now is, is that all there is to the bounce? Could be. The market isn't acting the way it usually does. I suppose it is letting you know that things are not going to be normal here for a while. It makes things tougher to trade. Time for the moves is compressed and you have to be ready for that. On to tomorrow.