Friday, April 11, 2008
Well we did get weakness today as the Dow got clobbered, down 256 points on average volume lately. Advance/declines were about 4 to 1 negative. Blame it on GE as it lost over 10% of its value in one day. Unheard of in the usual course of events. I did get some OEX calls but they're under water. This already has the feel of a trade that should have been avoided. We are going to get an up move in the next 2 days in my opinion. The trouble is that it's coming from much lower levels than I expected. A mistake basically and now it's a matter of managing the loss. Gold lost about $4, while the XAU was down over 4 1/2. ABX, GG and NEM all down a buck or more on light volume. The interest in the gold shares just isn't what it used to be. I still am looking to get some calls if another signal appears. No hurry at this point. GE was the story of the day as it warned the earnings will be a few cents less then expected. For this transgression the stock was taken out and shot. A roughly 12.5% loss in one day on the heaviest volume that I have ever seen in the stock. The OEX won't get going unless GE has a bounce. Mentally I'm a bit tired as I didn't sleep as much as usual. I was early on the OEX calls and that could have been avoided. I think I was perhaps in a rush to put on the trade and I should have been patient. Getting OEX calls on Monday is really the trade to look at. Perhaps I'll give that a shot because I'm a believer that it will work. I'm going to have to collect my thoughts over the weekend and go from there. The closer to expiration the more important timing becomes. This is a scalp trade but I'm afraid this time the scalp is mine. But its Friday afternoon and time for a break. Check the charts over the weekend and see where we go on Monday.