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Thursday, November 04, 2010

The Dow exploded to the upside, gaining 219 points on heavy volume. Advance/declines were 5 to 1 positive. Again, my trade was a loser. I dumped the OEX puts for a 60% loss. Not a lot of money, so that was a plus if you can consider that a plus. The market is going nowhere but higher for the foreseeable future. Do not fight the Fed. Only long side trades should be considered at this point. I did place an order for the longer term GE calls but yesterday was probably the correct time to do that. I'm leaving that order open in case the price returns to the level that I'll purchase them. Gold took off as well, up $45 to a new record high. The XAU gained 9 1/2. ABX was up 7/8, GG up 1 5/8 and NEM up 2 3/8. Volume was good. The dollar has broken through the 76 level. Gold has nowhere to go but higher as well. I suppose that I should have gotten some gold share calls last week. I could have adjusted the order. But I didn't and it's just another mistake in a trading year full of them. There isn't anything that I can do about it now. Mentally I'm doing OK. But I need to take a break. My guess is that I'm done trading for the year. I need a fresh start at this point. I'll leave in the GE call order since it rolls into next year anyway. The Federal Reserve is going to try and revive the economy again. It worked somewhat last time but not enough to help with the employment situation. So we'll see what happens this time. The employment numbers come out tomorrow and I don't think they're going to matter. The dollar is still going to fall. The beneficiaries will be stocks and gold. That is where the profitable trades will be.

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