Thursday, February 22, 2007
The Dow lost 52 points on what looks like extremely light volume. Advance/declines were negative. Not any news out and the overall market was stronger than the Dow again. I don't know what it means and have no OEX trades at the moment. Gold was down a buck and the XAU moved around a bit but ended little changed. ABX came out with decent earnings and ended up selling off on heavy volume. I was fortunate to be in NEM which had good earnings too but rose 3/4 on very heavy volume. It did sell off during the day but I sold my options early for about a 45% gain. Both of these issues are overbought and I would expect them to take a rest here. It looks like they have moved as much as they can for now. The earnings came out good and gold moved higher by $20 yesterday. There is no more good news to come out and move these things higher right now. That is my thinking at the moment. I will perhaps look to get long again when they pull back. NEM is also at some key long term resistance. So I'll try and be patient. Mentally I feel good about bailing out of this trade today. It was a short term thing and I played it that way for a change. I really could have made some good money if I had looked at NEM earlier yesterday instead of ABX. But I salvaged something and that was a good thing. You have got to keep moving and make adjustments to be successful in the game. Especially on the shorter term deals. I'm a bit tired now but will rest up tonight. I'll have to look to next week for the next trade unless something turns up before then.
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