Wednesday, November 16, 2005
The Dow lost 11 points with negative advance/declines. Volume was average. GE got a bid again but I did not sell. I still think we could advance here and I bought some OEX calls. It could be a crazy move but I have seen some crazy things today. I know that yesterday I said I would take it easy but I am a trader. GE could get a bid again. Or not. Gold soared today. I am kicking myself for not waiting another day. We got the biggest move I've seen yet. Up about $10 on gold and the XAU rose over 6 points on heavy, heavy volume. NEM was up $3, which I have not seen before. The calls I sold at a 90% loss yesterday are a 90% gain today. You just don't see things like that happen. You can't plan for it so I'm not beating myself up too bad. But we were at the weekly trend line again and it more than held. I will get long at that trendline until it breaks. We are overbought there also but simply remaining so. That's where you get some big moves and we are seeing that now. The OEX trade is highly risky with 2 days to go but perhaps a shorter timeframe will work in my favor. Oversold on a 15 minute basis and we'll see about tomorrow. Or it could blow out and I'll lose some more money. Not a lot of cash in this trade and I've got a gameplan. That gold move still blows me away. It looks like we will bust through the resistance and who knows where we are headed then? All this with the dollar stronger just doesn't make sense. But that's the market for ya.
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