Tuesday, November 07, 2006
The Dow rose 51 points today on heavy volume. Advance/declines were positive. We were up higher earlier but sold off in the last couple of hours. I dumped the OEX calls that I had. I certainly could have gotten a better price but I wanted to get out. It was originally just a bounce play and so that's how I played it. They closed higher than what I got for them and that's depressing. You always want to get the best prices for your trades even though that's impossible. I always want to do better. The gain was a little less that 200% and I don't think that's bad but I need to do better. Perhaps I should have held on since we are moving strong. But I am thinking that this will be a double top here and I have an overnight order in to buy some OEX puts. We will be overbought tomorrow as I have said before. I'm going to give the puts a try and keep a close stop on them and we'll see what happens. Gold was little changed and so was the XAU. I do want to get long here and we are just about at the uptrend line that began a couple weeks ago. I'll have to make a decision when we get there but I would like to get some calls. I don't want to spread myself too thin though. And if I'm looking for a decline in the overall market it could take gold with it. But it's all just a guess at this point as it usually is. The OEX call trade was a great set-up. I'm not sure that the puts are but they very well could be. I'm hoping that I didn't exit the calls too soon but that is possible. Mentally I'm a bit tired from not sleeping that good with the recent hot weather. I also don't want to think that I'm invincible after a winning trade. I need to keep grounded and look for the next opportunity. I think that it's here but I'm not sure and never really am. Is anybody? Maybe we'll get a bounce after the election or perhaps the rally will take off again. However for some reason I think what I'm thinking will be right this time so I'm sticking to it. We'll see.
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