Friday, November 04, 2005
The Dow was up 8 points on light volume. We are perhaps running out of steam here. Advance/declines were negative. GE was up a few cents but the options are dead in the water. Gold was down another 4 bucks today. The XAU was lower but came back to be off a half a point. The uptrend line continues to hold and I would like to buy the calls again. It had every right and reason to break the line today and it didn't. I think this is bullish for the XAU. If we get some weakness on Monday back towards the line I will buy some calls. NEM was higher but those options are still less than what I paid for them. But I'm out of that trade. Volume on the gold shares was light but the volume on the XAU was quite a lot and I will check Monday to see if the open interest expanded. I think it did so something is up. There are 2 weeks to go and I think this will work. That is why I originally bought them. But I could be wrong as gold has broken the support at $460. Perhaps it is a fake out move, I don't know. I need to check the economic calendar also. Employment came out weaker but the dollar still rallied and that hurt gold. Yields are up also which is impacting gold. We'll see what happens. I'd still like to get long the OEX but we're overbought and I want to wait for some type of pullback. Mentally I need some rest as the trading is taking a lot out of me. The focus is returning but the discipline really needs to be worked on. There is money to be made in the next 2 weeks. I need to pay attention and take my shots. Patience is needed also which makes this such a tough game. I'll try my best and hopefully will succeed. I need to rest and check all the charts over the weekend and that's what I will do...
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment