Thursday, March 02, 2006
The Dow lost 28 points today on pretty good volume. Advance/declines were negative. It seems the volume has picked up a bit on the downside lately. We have really gone nowhere for a couple weeks and it is very frustrating. The sideways action is not making for any big moves or profits one way or the other. I am leaning towards the downside but have no clear signal. It's getting harder for me to sit it out but I must for now if I can. Gold was up $4 and the XAU rallied over 3 1/2 points. Last night I noticed that ABX was right at the weekly trendline. This is the same line that I am waiting the XAU to hit. I thought about getting some calls but I was too late. ABX had a very nice move and the volume increased. Perhaps the XAU isn't going to go all the way back to the uptrend line. I am going to wait though because I have missed this move and we might come back down again to thwart whoever got calls today. I would like to go out to April on those options. The volume was there though, so I can be positive about getting the calls for gold. Getting back to the overall market, I'm just going to have to wait for something decent to appear as far as a signal goes. Perhaps they will take one last stab at the upside and then that could be it. Just a guess. Mentally I'm doing OK I guess. Sleeping enough, getting to bed on time. I would like to do something in here somewhere but I must guard against trading just to trade. Looking back on last year I made most of my money trading gold. Perhaps I can repeat that again...
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