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Thursday, October 07, 2004

Down 114 points on the Dow today and it closed near the low of the day. Volume was good and the advance/declines were almost 3 to 1 negative. I don't own any OEX puts. In retrospect, I should have purchased a few at the close yesterday. There was a short term signal on one of my own indicators. But I did nothing, probably because I was too busy second guessing the sale of my ABX calls. It is always a battle amongst myself. Gold did not move today but the XAU was down almost a point. NEM and ABX were also down but on light volume. I might possibly get some NEM calls for expiration week if things work out that way. I'm looking for ABX to pullback to around 21 and I am going to go out to the November options on that. GE was down today and I did not buy any calls for the earnings report tomorrow. Employment number tomorrow and it will all trade off of that. If today is any indication, it will be a weak number. But we'll find out tomorrow. The ABX trade ended up 240% and the profits were big because I owned twice as much as planned. My account is back in the black and barring some real stupid trades on my part this will be a good year. I am now in the position of having to search for a new trade. Patience and discipline are needed. It's always hard for me. 6 days until expiration and I will probably try and do something. I'll check the charts tonight and take it from there.

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