Thursday, February 24, 2005
Up another 75 points on good volume today. Advance/declines 2 to 1 positive. Perhaps Tuesdays decline was the end of a minor correction. Or the beginning of something more to the downside. However usually when we head down we don't get back to back days like the previous two. But the summation index is pointing down. Which brings to mind the fact that there is no perfect indicator. Gold did not move much today but the XAU was off over a point. ABX was down about a dime on good volume. I am worried now about this position. I think I should have gotten out today. Trading isn't easy. The dailies are overbought on this issue. I think I need to book the profits and look for something else. The problem is that the weekly charts suggest higher prices. The best scenario for me would be a sideways movement to work off the overbought condition and then move higher. But the market doesn't care what is best for me. It will move where and when it wants to. The dollar was a bit higher today and everybody seems to have forgotten Tuesdays decline. The weekly charts here too suggest that lower prices are ahead. There are still three weeks left on some of my ABX calls. I still have an open order for some NEM calls. Confusion will cost you money in this game. I will see what tomorrow brings. If ABX heads down it could very well be time to get out. Perhaps it isn't ready to break through the $25 resistance. It is a tough game...
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