Thursday, May 18, 2006
The Dow lost another 77 points today on good volume. Advance/declines were negative. I bought some more OEX calls at the close. What can I say? I'm a believer in this trade. There is only a day left though and I'm beginning to understand that these short term things maybe just aren't my style. I still think this thing needs to bounce tomorrow. I paid a bit much for these calls and we dumped at the end so they are already under water. It may have been an extremely stupid thing to do. Tomorrow will tell. The time factor is all important and I should sell these things early if I have half a brain. But perhaps this is one of the rare times where the market just keeps going down and remains oversold. That is a possibility but usually it's very remote. Plus it's options expiration so we'll just have to wait and see. I think it will work but I should have waited for the price that I had put in. After all if it doesn't get filled, there's always another trade. Gold was down $8 today and the XAU lost a couple of points. We are just about at a very important uptrend line in gold on a weekly basis. I don't think it will hold and that could be the end of this fantastic run in gold for a while. We'll have to wait and see what happens. Mentally I'm a little tired from not enough sleep this week. I'm ready for whatever happens tomorrow but even if this trade works, I'm going to have to reassess my trading timeframes and discover what works best for me. I don't think it's these short term deals. Anyway the post tomorrow should be interesting. I'd really be surprised if the market doesn't go up but it could and not enough for me to make any $. Tough game...
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