Friday, December 29, 2006
The Dow lost 38 points on the final day of trading for 2006. Volume was light. Advance/declines were negative. I took the GE trade that I was thinking about today. I now own some calls for my first trade of the next year. My thinking is that we will see a rally on Tuesday that will carry the big cap stocks higher. The stop loss order is in. I don't think this will be a long term trade and I will probably be out on Tuesday or Wednesday if things go according to plan. But we will see. Perhaps the market will open the new year lower. There are always risks. The market sold off pretty good in the last hour. Gold was up almost 2 bucks and the XAU sold off almost a point. Volume extremely light for the gold shares again. I'll need to check the charts here again over the long weekend. I do know the summation index will be pointing down again and the overall market was weaker than the Dow today. My thinking is that todays trading was more end of the year related. But who knows? Mentally I'm doing good and am anxious just a bit to see how we open on Tuesday. It seems like it's been a while since the last trade. I'd also like to start the new year off on a good note. It is a very difficult game.
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