Wednesday, March 09, 2005
The Dow got clocked today, down over 105 points on heavy volume. Advance/declines were 4 to 1 negative. Haven't seen action like that in a while. This will turn the summation index down and a sell signal is in place. It didn't last too long the last time this happened. We'll see what happens this time. Oil was over $55 for a while and bonds got a mention for selling off. The dollar was weaker today but gold did not move. The XAU was up half a point and NEM rose around a quarter. But ABX, which has been leading, dropped and formed a doji on the daily charts. I think this part of the move could be over. The NEM calls are still in the black and I moved up the stop-loss order. But I am getting the feeling that I should have dumped them today. The trade number looms large on Friday. But with everyone focused on it, I fear it could be a non event. The ABX action concerns me. Looking back buying some puts on the OEX on Friday would have been a good move. There was a sell signal on one of my indicators. Perhaps I was spending too much time on gold, which probably was the case. Trading is a tough game. I am still, after all these years, working on my game. There are no easy answers. Hard work is what it takes and there is always room for improvement.
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