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Monday, January 11, 2010

Overbought and staying there as the Dow gained 45 points. Volume was light and the advance/declines were positive. Grinding our way higher but we will need to see some type of downside soon just to relieve the overbought condition at the least. The market has refused to sell off. It is expiration week so anything can happen I guess. Gold had a good day, up $12. However the gold shares did not move well. The XAU only gained 7/8. ABX, GG and NEM were all higher early and then closed with just fractional gains. The dollar was weaker. So everything was present for the gold shares to have a stellar day and they didn't. That's troublesome. When we were higher at the open I adjusted the stop-loss order on the ABX calls to insure a profit. Imagine my surprise when we traded through the stop-loss price, back and forth and my order wasn't filled. That hasn't happened to me in 15 to 20 years. I contacted my brokerage but they didn't do anything. Here I did everything that I was supposed to, trying to insure a profit and it didn't happen. There usually isn't a problem with stop-loss orders but for some reason there was today. Needless to say it was very frustrating dealing with a know-nothing customer service rep at the brokerage. The non fill cost me a profit. It happened to me with the gold share index many, many years ago. I eventually bailed out of the ABX calls for a 25% loss instead of a 40% gain. Not the way that anyone would like to start the new year. I could not hold the position any longer though. 4 days left and a buck out of the money. Technicals overbought. A good day for gold and the gold shares sell off after a higher opening. Ominous signs if you ask me. But anything can happen. Mentally I'm feeling tired, did not sleep enough. So where do I go from here? I just had 3 chances for a profit on that trade and failed. I won't be blaming myself though. Lousy or non-existent trade execution isn't something that I can control. I did what I was supposed to today and for whatever reason it didn't work out. I'll bear this in mind going forward.

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