Thursday, December 28, 2006
The Dow lost 9 points today on light volume. Advance/declines were slightly negative. I am thinking of getting some GE calls for January. GE had a big rise and is now consolidating the move. My thought is that there will be a nice gain on the first day of next year. The weekly charts project prices at least a couple of points higher than where we are today. I'm not sure this is the best trade in the world but perhaps it will work. Gold was up over 6 dollars today. The XAU only rose a point on light volume. The XAU hasn't moved as well as gold itself lately. I would like to trade the gold shares here but haven't. It is hard to get excited when the volume is missing. Not to mention the lack of confirmation in the XAU. So I'm sitting it out there for now. Mentally I'm doing as well as can be expected. I am trying to wait until the new year to get it going again but this GE trade could be my first. If the calls get to a price that I'm looking for tomorrow, I might just pull the trigger. You can never be sure of any trade and you really have to be nimble. Just yesterday I had said that I want to wait for the good set-ups. But they just don't happen all the time. There are reasons to take on this trade just as there are reasons to sit it out. We'll see.
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