Monday, May 12, 2008
A light volume Monday rally today as the Dow gained 130 points. Advance/declines were pretty good, over 2 to 1 positive. I'd still like to be a believer of the June OEX puts here but the summation index should continue higher with todays action. As for the OEX, I am probably going to let option expiration week pass and get short next week. But that could change. I'll have to see how the week plays out. Gold didn't do much today, the XAU lost 2/3. ABX and NEM were weaker, while GG was flat. ABX led the way down by 3/4 on light volume and my ABX calls are in the red. This trade is a loser and isn't coming back in all likely hood. It's a cut the loss mode at this point. The poorest trade of the year regardless how it turns out. The dollar opened higher and closed lower but both gold and oil couldn't rally off of that. Retail sales tomorrow, we'll see what that does. GE was up a bit on light volume. As usual not much going on there. Mentally I'm tired. Did not sleep well and the mental energy lost in this poor ABX trade takes a toll. What bothers me is that I had a couple of chances to get out with a small gain and didn't take them. Why? I don't know. You've got to perform properly given the conditions. If you can't do that, you haven't got a chance no matter how much work you do when the market is closed. So we'll see what happens overnight and go from there.