Friday, August 12, 2005
Market down 85 points on light volume today. Advance/declines almost 2 to 1 negative. Thought the volume would have been more here with expiration week coming up but it could be one of those quiet ones. Gold didn't do much today and the XAU was up a bit. Overbought here for sure and the question of when and where to sell the NEM calls is forefront. I think we need a pause here for sure but then what? I'm thinking higher prices but how soon. With 5 days left the exit timing will be crucial to the profit on this trade. Volume confirms the move up but how long can it stay overbought? Even with a nice gain the work never stops. I will look at it closely over the weekend and develop some sort of gameplan for next week. I would like to relax a bit over the weekend though. No OEX trades for now as the market actually came back in the final hour before selling off again. So I'm not so sure there. Oil at another new high but when that starts to correct and sell off I think the market will take off to the upside. But for now a little rest is in order...
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