Wednesday, October 17, 2007
It was a volatile day on Wall Street and we ended down 20 points. The Dow opened strong, up around 80 points. That eroded however and we were eventually down over 100. The daily up trend line was broken for a time. But then the market came back. I did have my eye on some OEX calls at one point but the price did not reach my target. The overall market was stronger then the Dow. Advance/declines were about even and the volume was good. I think we will go higher into the expiration from here. Gold was little changed again but the XAU dropped 3 1/2. I had an overnight order in for some ABX puts but it wasn't filled. ABX lost about a buck and a quarter on heavy volume. NEM was weaker as well on good volume, down over 1.80. The gold shares need a rest and have needed one for quite some time. ABX got more overbought then I've ever seen it and should drop or consolidate for a while. But I could be wrong. GE was up about a quarter on average volume. I'm not expecting much from GE in the near term. However longer term the trend is still up. Mentally I'm doing OK. Did not sleep as good as I would have liked. I suppose I will still be looking at the ABX puts if we get a snap back in the near term. Hard to say with the earnings on tap in 2 weeks. They should be stellar. The consumer prices came in a touch stronger today but the housing numbers were still in the tank. The data suggests that the Fed could cut rates again at the end of the month. We'll see. The summation index is still pointing down but I wouldn't be surprised if we get some kind of snap back after todays action. 2 days before expiration. No need to take any short term chances...
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