Friday, February 08, 2008
We were lower for most of the day as the Dow lost 65 points on lighter then lately volume. Advance/declines were negative. Certainly a lack of buying interest. That said, we are short term oversold here. I would have liked to have the guts to get long today. Perhaps on Monday after a check of things over the weekend. However at this point there is only a week left on the options and I think Tuesday could be a downer. But it's all just a guess. Gold was up over $12 and well above $900. The XAU gained over 6 points. ABX was up over 1 3/4 while NEM tacked on a buck. The volume was average but not as good as we have seen before. The ABX calls are in the black. I'll have to pick a target over the weekend. I do think the overall market will have a rally at some point next week. Not sure if gold will go along for the ride. I could be wrong. GE lost 40 cents on average volume. GE needs to show some life if the market is going to get going to the upside. INTC gained a little and the volume was light. The NASDAQ was higher today and it could be a precursor for next week. Or not. Mentally I'm feeling OK, slept well. I do want to get some OEX calls next week but the price movement on the options isn't what I'd like. There is so much premium in them that movement in the OEX itself doesn't translate into the same movement in the price of the options. What you do see is a rapid time decay going on as the index moves up and down. So the timing both in and out has to be good or you'll lose money. I could just step aside and that is another possibility. For now it's the weekend and time for a break. Check the charts and get a game plan ready for Monday.