Tuesday, May 23, 2006
The Dow lost about 27 points today. It was a turnaround as we were up 75 at one point. Advance/declines were negative again and the volume was good again. The market just can't seem to hold on to anything. The summation index is still pointing down and the trend will follow that. Oversold and staying there and that is never good for the market. Gold was up around $8 today and the XAU rose over 2 points. That index was much higher also and sold off too. There is something going on here but I don't know exactly what. Puts seem to be the way to go at the moment. The tone of the market has changed. I will need to keep this in mind. It is starting to remind me of the year 2000 in the markets. People still believed the trend would be up but it just kept dropping and did so for years. I don't think that's the case here but time will tell. Mentally I'm feeling OK. I have no trades on the horizon and may just stay out in lieu of the recent severe losses. We'll see. I need to get back to reading the blue book and doing what is necessary for success. Discipline is paramount. Tomorrow could get interesting...
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