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Thursday, October 31, 2013

We turned around in the last hour today as the Dow fell 73 points on good volume.  The advance/declines were negative.  The summation index has turned lower today.  Just end of the month profit taking in my mind.  However the small stocks are leading the way lower here and the short term technicals have rolled over.  I still don't think that this is the beginning of a big move down.  The extreme overbought condition of the market is being worked off.  GE was off 1/4 on good volume.  If we ever get back down to the breakout price, I'll be looking at the calls.  Gold was off $25 on the futures as the US dollar had a very good day.  The XAU fell 4 points.  ABX dropped 1 1/8, GG lost 7/8 and NEM shed 3/4.  Volume was above average for ABX, average for the others.  I simply should have dumped the ABX calls in the morning but I didn't.  ABX was holding up well during the day but got clobbered near the nd, like the overall market.  My November ABX calls are still showing a profit.  However gold has now rolled over.  I have once again held onto a trade for too long.  Mentally I'm doing OK.  Beginning of the month tomorrow.  I'd expect some money inflows.  Not much on the economic data front.  After the bell ABX announced a plan to offer 3 billion worth of common stock at $18.35 to pay off debt.  That will kill my ABX call trade.  The deal closes on November 14th which is a day before the November options expire.  Unforeseen announcements are just one of the risks in trading single equities.  But it works both ways.  If you owned the puts right now you are smiling.  It has been a horrible trading year for me but you've got to keep moving on.  We'll see what happens overnight and go from there.

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