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Thursday, May 07, 2009

We headed lower today ahead of the so called "stress tests". The Dow lost 102 points on good volume. Advance/declines were almost 2 to 1 negative. It was a one day reversal as we opened higher and closed lower. I'm still going to consider the OEX puts if we test the recent highs on lighter volume. But it might be too late. Employment report tomorrow. Gold was up another $6 but sold off in the aftermarket. The XAU lost 1 3/4. NEM and ABX were flat, while GG gained 7/8. All the gold shares were much higher early. Volume picked up a bit. I dumped the GG calls for a 70% gain. It should have been more but I can't complain too much since they were dead a week ago. The earnings were good and if the market hadn't been so weak I'm pretty sure GG would have done better. I still like the gold shares here and might try another trade before expiration. Mentally I'm pretty tired, did not sleep enough and was up early. I should have been better prepared mentally for the trade. It's always easy to see the mistakes looking back. I entered the trade too early and exited today too late. Not usually a winning combination. The power going down at the office halfway through the trading day didn't help things either. So on to tomorrow and I'll have to come up with something from here.

2 comments:

Unknown said...

Owning stock means that, no matter what happens to the company, the maximum value you can lose is the value of your stocks. Even if a company of which you are a shareholder goes bankrupt, you can never lose your personal assets.
small caps

Unknown said...

The portion of the balance sheet that represents the capital received from investors in exchange for stock (paid-in capital), donated capital and retained earnings. Stockholders' equity represents the equity stake currently held on the books by a firm's equity investors.
It is calculated either as a firm's total assets minus its total liabilities, or as share capital plus retained earnings minus treasury shares.In broader look, equity is the same as the shareholders equity.Equity is nothing but the portion of share capital raised through the owners own money; not borrowed money like loan. Naturally shareholders are the owners of the company.