Monday, April 04, 2005
Kind of just a hang around day in the market today. The Dow was up around 15 points on heavy volume. Advance/declines were slightly positive. We are at a spot where the market needs to hold or else. Summation index is still pointing down and needs to turn around to give the market a chance. GE lost about a quarter and now the May options I hold are under water too. It doesn't look like the April ones will get a bid again. Earnings out on the last day of the option cycle. There's always hope but hope is over-rated and won't work in trading. I'm looking at the gold shares again as we are at a major point there. The dollar index is at overhead resistance and the gold contract is at longterm support. Something has to give but I am a believer that gold will hold here and the dollar will fall. I am looking at a way to trade this but my mind is somewhat preoccupied with the GE trade. I'm looking at May and longer calls on ABX and NEM. But I am trying to be patient in case these levels don't hold. It's a tough call in a tough game. I'll be the first to admit that my mind has not been as sharp as it needs to be lately to play this game. I'm not sure why. But there can't be any excuses. You've got to do the best you can. Not a lot on the economic calendar this week. I suppose the market will key off of oil as it has lately. Nobody said it would be easy...
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