Wednesday, April 19, 2006
The Dow rose 10 points on good volume. Advance/declines were positive. No big follow through but at least it didn't fall. The inflation data was bearish but the market kind of shrugged it off. We are overbought here though. Gold rose over $10 and the XAU was up 5 points. This thing is out of control. NEM was up about a buck and a half. We were down on the XAU at one point and I almost sold the calls. But I did say I would wait until the earnings and that is tomorrow. But perhaps I just should have dumped them after they rallied. Either way this trade should make some money and if the earnings are good, a lot of money. I also remembered when I sold the ABX calls right before they turned around. Patience is needed in the game sometimes. The trouble here is that there are only 2 days left on the NEM options. So really, how patient can you be? It also looks like it is selling off in the aftermarket but tomorrow will be the key. Way overbought here also and I'm out tomorrow no matter what. I don't know what lessons are to be learned here but something will happen one way or the other. I'm probably going to stay away from gold on the long side after the expiration but the trend is definitely up and the money is flowing that way. I'll need to either short it or search for other opportunities. But let's not get too far ahead of ourselves. We still have tomorrow to deal with. Mentally I'm doing fine for now. Getting enough sleep and doing the reading that is necessary and catching up on things that need to be done. It takes time but the time must be put in to be successful. There are no short cuts.
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