Monday, June 11, 2007
The Dow ended up pretty much unchanged today on light volume. Advance/declines were about even. We were up about 40 points and down about 40 points during the day. However we sold off in the last hour and that's never really a good sign. I was looking at some OEX puts and would like to buy some. This will have to be a quick trade since we are in the expiration week and there are 4 days left. We have done a Fibonacci 62% retracement of the recent decline and started lower. My hope is that tomorrow we build in a little more of a short term top and then head down from there. That's just a guess. If we just head down from here then I'll look to get long near the end of the week. I would like to get in a trade this week. Gold bounced back 8 bucks today and the XAU gained a point. It didn't seem all that convincing to me but at least the decline has stopped for now. I haven't gotten the solid buy signal there yet and I don't know exactly when that will happen. It doesn't look like it's in the offing near term. The US dollar hasn't reached my target of 83 yet but it's close. There is a lot of talk about higher US interest rates lately which could support the dollar. However whenever something is widely known it has usually already been discounted in the market. If that's the case here then gold might be getting close to being interesting again. We'll see. Mentally I'm feeling fine, got a pretty good nights sleep. I'm getting somewhat anxious to make a trade here and I need to keep that in mind. The market will do what it does. I can't force myself upon it. However I think I've got a feel for what will happen here. If the market remains positive tomorrow, I'm going to short it. It won't be a long trade, time wise. We have inflation data out on Thursday and Friday. I think the Fed minutes release on Wednesday is going to be a mover as well. But the market isn't going to wait for me. The rollover today could already be the beginning of the retest of the low last week. It never is easy. There are many questions to answer this week. However there is money to be made.
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