Friday, July 11, 2008
Another crazy day as the summer doldrums are nowhere to be found. The Dow dropped 127 points on heavy volume. Advance/declines were 2 to 1 negative. It could have been worse. We were down more than double that at one point. But we did come all the way back only to fall again. That's the kind of market we're in. Mortgage troubles in the headlines today. Summation index continues lower. I don't have the answers. I still think it's got to turn around but it hasn't. Gold was a safe haven favorite, up $18. The XAU jumped 7 1/2. ABX, GG and NEM were all up over 2 bucks on extremely heavy volume. The GG calls are doing fine at the moment. But that could change in an instant. However the price action with heavy volume says there is more room to the upside. We'll see. GE opened lower, was up 1/2 and then ended pretty much unchanged on heavy volume. I dumped the calls I had at the open. The market was so bearish at the beginning, GE never had a chance. The premium from the earnings was sucked out and it turned a slight winner at the close yesterday into a 60% loser. Yeah I could hang on for a 100% loss next week probably but why bother? It was a scalp trade that turned into a longer term hope the earnings are good trade. I should have gotten out with the small profit when I had the chance. The whole trade was stupid to begin with. When you make stupid trades you lose money, when you make smart ones you make money. Mentally I'm tired, not enough sleep and volatile markets. Mistakes are part of the game and I'm moving on from the GE debacle. Not a lot of money involved but a loss is still a loss. The markets are really nervous here but this can't go on forever. A check of the charts over the weekend and some rest are in order. We'll see if there is any news over the weekend and go from there.