Friday, February 03, 2006
The Dow lost another 58 points today on average volume. Advance/declines were negative but not as much as a down 60 market would indicate. We are at a tough point here, tradingwise. The weeklies are bearish but the dailies are flashing a buy signal. I would like to get long here but just aren't sure it's the right thing to do. I will ponder this over the weekend and decide from there I guess. The summation index is now turning down I believe. The trend overall is now lower. But a long trade managed properly could be the right play for the short term. Then get short again at the downtrend line. That would be the scenario in a perfect world. But this is the market and anything can happen. I'm getting some buy signals from various indicators and sells from others. Perhaps sitting on the sidelines would be prudent but you don't make any money that way. Gold was down a bit today and the XAU lost almost 5 points. I would like to short this on a rebound. Will that happen? Don't know but I think it has a chance. Tough market though and you've just got to pay attention there. I also would like to see the inflation numbers in a week or so and get some OEX puts beforehand. I do have some ideas but when and if to implement them are the questions. Mentally I'm doing fine now that the dentist has passed. I'm ready to trade and just need to make up my mind on what to do. It's dangerous and risky at this point. I'll have to regroup over the weekend and see what happens. Short is ultimately the way I think I should trade it but who knows? Crosscurrents are tricky. This is one tough market to trade at the moment. I'll try and relax over the weekend but no guarantees there...
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