Friday, February 10, 2006
The Dow gained another 35 points today on what looks to be average volume. Advance/declines were slightly positive. The market made quite a comeback as we were down 60 points in the morning. The puts I own at one point tripled but now they are right back where I purchased them. Tough game. I actually thought about getting some calls as we rallied right back up to the downtrend line. If we break through those puts are dead. I think if we do get through there I'll get some calls but it's a hard decision because the technicals aren't really signaling a buy. The summation index is still pointing down and I'm going to stick with that. I think Tuesday will be the day to the downside according to what I've got. It's getting through Monday that will be the test. A lot of volatility here and that could help prop up the option prices. My trading tactics need work though. Gold was down big, as much as it was up yesterday. Crazy market there for now. Should of had some puts but what can I say? It is just the toughest business in the world. The challenges are not for the faint of heart. The discipline and work required for success are enormous. Mentally I need to continue to focus on the positives and do the work. My entries have been good and my anticipation of the direction has been excellent. My timeframes have been off as we are moving much faster, both ways, than I anticipated. I still think the downside is the way to go until that downtrend line is broken. Could happen on Monday or not. I will try and relax over the weekend but no guarantees there.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment