Tuesday, April 08, 2008
The Dow lost 36 points today on light volume. Advance/declines were negative. We were down from the start but it wasn't much compared to last month. We are working off the overbought condition. There isn't much interest one way or the other at the moment or so it seems. My idea for now is to let it pull back and if it does, get some OEX calls on Friday for expiration week. That's the scenario at the moment in my mind. Gold was off $8 and the XAU lost 2 points. ABX and GG each lost a buck while NEM had a slight gain. Volume was light here as well. I'm going to see if we work our way back to the 170 level on the XAU and take it from there. ABX is medium tern oversold but I am in no hurry at the moment. GE dropped 1/4 on light volume as well. No trades there in the near future as far as I can tell. But you never know. Mentally I'm feeling fine, got a good nights sleep. 8 days until the April cycle ends. I'm thinking weakness into Friday, get long and sell out after Tuesday of next week. Now if it all plays out like that, it will be a first. Volatility has slowed quite a bit from last month. I don't think there is any rush to put a trade on here but I would like to make some money. If things go the way I anticipate, I think it's going to be a good trade. But then, when don't you think that? Summation index still pointing higher. A lot of data out next week so for now it's sit tight and see what happens.