Tuesday, January 03, 2006
The Dow rose 130 points today on heavy volume. Advance/declines were 3 to 1 positive. The market didn't do much and was negative in the morning but after the Fed minutes were released it rallied strongly. The OEX calls I bought have doubled. GE was down for most of the day but reversed late and ended up 30 cents. Now the question is if this is just a one day wonder or the start of a sustained move. I don't know. We are back at resistance. If we can get through there with some volume then we will go much higher I believe. Has yet to happen. Gold was up over $13 today and I am very disappointed that I am not involved. The XAU rose an astounding 7 points. NEM was up over $3. I had been considering the January XAU 120 calls and never acted on it. The price and volume patterns pointed towards higher prices and I didn't do anything. I had read an article that gold had reached a top and I let that sway my opinion. That was a mistake. I do make mistakes and missing this move in gold is one of them. You have just gotta go with what the market is telling you, whatever the market. I was a fool for this one. And I'm not very happy about it. Mentally that is gnawing away at me and I cannot let it affect what I must do with these other trades. I will try and stay focused. I have no targets for these other trades but I need to look at the charts. Stop-loss orders should probably be placed but I haven't done that yet. My priorities for the coming trading year must be put in order. I need to do the work and keep my head together. Everything else should fall into place...
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