Monday, January 08, 2007
The Dow gained 25 points on average volume. Advance/declines were positive. We were oversold and entitled to bounce. Just what happens next here is important. The summation index is pointing down and that could lead to further weakness. Or we could turn things around and go on to new highs. I think the next couple of days are key to what todays action was. It means everything to my GE calls also. GE did nothing today by the close. We sold off early and came back to unchanged. The calls are right where I bought them but that won't last forever. I'm not feeling good about this trade unless tomorrow brings some positive action. We'll see. Gold ended up a couple bucks today and the XAU was basically unchanged at the close. ABX is acting much better than NEM and that is what I will trade when the next gold play happens. At least that's the way I see things at the moment. Mentally I'm trying to concentrate and do the right thing here. This was supposed to be a quick trade but my target was never hit and I'm still there. I'm not saying it won't work out but it better get going fast. If not, it'll be a loss and I'll move on.
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