Thursday, June 26, 2008
We fell apart today as the Dow lost 355 points on heavy volume. Advance/declines were over 5 to 1 negative. We are as oversold as it gets. The market moves on its own merits, the data today didn't matter. I think we are going to get a very big bounce within the next 2 days so I bought some GE calls for a scalp. Hopefully GE goes along for the ride. I don't think it will be the beginning of an uptrend but I believe it's an opportunity. I could be wrong. Gold soared today, up over $30. Of course I'm kicking myself for not owning some gold share calls but we are breaking out here and you can buy the pullbacks. Could get one next week. ABX and GG gained 2 1/2 on great volume. NEM up 1 3/4 on good volume too. Almost just went ahead and bought some calls there today but I'll wait for the first move back. Oil surged and the dollar was weaker. My weak dollar scenario seems to be working at the moment and that is leading to help the decline in the overall market I think. GE lost a buck forty on heavy volume. I didn't put a lot of money in this trade. The calls are off a bit from when I got them today. I'll be out by Tuesday if my brain is working. Perhaps even tomorrow. Mentally I'm a bit tired. Was up early today and did not get the usual amount of sleep. These are interesting times to be sure. The Dow seems to be leading everything else lower. One thing is certain. We got a high volume breakout to the upside in gold. It should last for the July option cycle. There is still time to make some money there but the ideal entry has passed. We are deeply oversold on the stock indices. They will bounce and soon. If not it will be something very ugly to remember. But I'm calling for a bounce and playing that via GE. We'll see what happens tomorrow.