Monday, November 12, 2007
Well the market tried to come back. We were up over 100 points but it didn't matter and the Dow closed down 55 points. Advance/declines were over 2 to 1 negative as the overall market was much weaker. Volume was heavy and it was a partial holiday. The market is again in trouble as it was in August. When we are oversold and can't rally, it starts to collapse. I was hoping for a couple of days of rally to get some puts but it doesn't look like that will happen. It is a downside waterfall. Gold got whacked today, down $27. The XAU lost over 14 points. ABX lost over $3 and NEM over $4 on heavy volume. So the run in gold is over for now. We broke the uptrend lines. The next expectation would be to snap back towards the up trend lines that were broken. On that snap back there will be a chance to get short the gold shares. That's my guess at this point. GE lost around 20 cents on average volume. The longer term calls are finally getting cheaper but it isn't the time just yet. Not in a market like this. Mentally I am tired as I did not sleep well. We took out the recent lows at the close and that isn't a good sign. Normally I would be looking to buy any weakness tomorrow. But these aren't normal times at the moment. I do expect some type of decent rally attempt at some point this week because we are that oversold. I don't expect it to hold though. Something bigger is going on here but I certainly don't know what that is. If I'm up for it I will possibly make a trade this week. If not, there is nothing wrong and no money lost by waiting it out...
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment