Monday, February 06, 2006
The Dow gained about 5 points on light Monday volume. Advance/declines were positive. I was thinking about getting some calls today and I kind of think that is the play here. But the summation index is pointing down. That is stopping me. Most of the technicals are overbought and the put/call ratio favors a buy. Perhaps I'll do it tomorrow or maybe it is too late. Tough call. I'd like to short gold or some of the gold stocks here. The XAU was up 4 points and gold rallied just a bit today. It looks like a sell on the RSI for the XAU, ABX and NEM. It's hard to do though because this market has been so strong and the money just keeps going in there. But it has to take a rest sooner or later. Not sure how to go about it there but I'm keeping an eye on it. Mentally I'm doing the work required, checking the charts etc. I'm a bit tired today but just took a nice refreshing walk to clear my thoughts. There will be an opportunity to make some money here in the next 2 weeks. I am ready and will try and not make the same mistakes as last month. My trading tactics will be better. It's my analysis that has to be correct this time. I think I have a handle on it but who knows. The market will go where it wants to. I'll watch and listen and we'll see what happens...
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