Friday, May 13, 2005
Interesting day yet a losing one for me. The Dow lost 50 points on increased volume. Advance/declines were over 2 to 1 negative. My OEX order got filled this morning. The market did rally after the purchase but then turned around and was down over 100 points. I had to bail out to cut the loss. Not a lot of money in this trade and it was a 50% loser. Could not afford to hold on with just a week left. Perhaps it was just another dumb move but sometimes you have to take your chances. And who knows, I might put another trade on next week. There is some going on under the surface though and I can't quite put my finger on it. There is a lot of liquidation going on as somebody or something needs to raise cash. Perhaps there is some hedge fund problems about to unfold. The summation index should turn down with todays action and that won't bode well either. Not sure what's going on and perhaps a more prudent course of action would be to sit it out. Gold dropped again today and the XAU fell on increased volume. This is a definite unwinding of positions. The dollar hit a new recovery high and that downtrend is over. I need to remember that. So todays trade was a loser. I'm not going to beat myself up over it because in the game you have got to just keep on going. It isn't easy to do. But it must be done. The weekend is now here. Time to forget about the markets for a couple of hours at least. Crazy game.
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