Friday, June 06, 2008
Today even more interesting than yesterday as the Dow lost 395 points on heavy volume. Advance/declines were over 4 to 1. The near term support on the indices was broken and we're headed lower. I guess I should have stuck with the OEX put scenario but it's always clear in hindsight. In no way did I expect a close to 400 point down move after gaining over 200 points yesterday. Unemployment rose a lot and now the fear of recession is back in the picture. The summation index had flattened out but it will be moving lower after today. In the wake of all of todays action, I did put in an order for some ABX calls as gold rose over $20. The XAU rose 3 points. ABX and GG were up around a buck fifty on good volume. NEM managed 40 cents to the upside. The dollar lost more ground and oil was up $10. Normally I would not chase a move but I think gold will rally in the next couple of weeks as the market drops. Todays employment report should weaken the dollar further. In theory of course. Anyway the order for calls wasn't filled but I'm ready to try again on Monday. GE lost a buck on heavy volume. Just yesterday it looked like it was trying to rise from the bottom. So much for that. Mentally I'm OK I suppose. Didn't sleep all that great but enough. Where we go from here is the question and I think that the answer is lower. I'll check out things over the weekend as usual. Monday should be very interesting as well. I'll come up with some type of game plan and take it from there. For now, it's time for a break.