Monday, November 13, 2006
The Dow was up 23 points on average volume. Advance/declines were positive. I do not have a clear signal here to trade although I'd like to. It's expiration week and next week is a holiday week. But I can't do anything if there isn't a decent feeling one way or the other. I would like to short it here because we have been up against resistance 3 times and haven't gotten through. But it's just a guess. The fight is against myself. Gold was down $4 today and the XAU sold off and then came back. I had an order for some ABX calls in. ABX sold off to the Bollinger band. It is oversold on a short and longer term basis. But there are only 4 days left on the calls. The risk is huge. I canceled the order but ABX continued to rally. I really want to go out on a longer basis with the gold shares. I'm looking at January but who knows? Perhaps I will still do this trade but it might be too late and it might not be the smart thing to do. Gold and the XAU itself are not oversold. Mentally I'm feeling as if there are a million things going on at the same time here. Expiration week will do that. Everything tradingwise is compressed. I need to focus on what exactly it is that I want to do here. The sidelines might be the wise choice but you don't make any money that way. However you don't lose any either. I'll have to see what the markets are saying tomorrow. There is a ton of economic data being released this week. We'll have to see if it gives the market some direction. I cannot make the market do what I want. I can only hope to try and listen to what it is saying. The tech stocks were strong today and we will not get a major sell-off if that remains the case. Oil was weaker, the dollar was a bit stronger. I need to come up with a gameplan and go from there. It is never easy...
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