Monday, July 14, 2008
Trying to stabilize here but it hasn't happened yet. The Dow lost 46 points on good volume once again. Advance/declines were over 2 to 1 to the downside as the overall market was weaker than the Dow. I didn't think we would go on like this for so long but it continues. Perhaps we'll just taper down into the expiration. I still think there will be a giant short covering upside move at some point. But I've said that for a couple of weeks now. Summation index still pointing down and it is about as low as it goes. Gold continued higher today, up another $13. The XAU rose over 6 points. ABX, GG and NEM were all higher on good volume. GG led the way up 2 3/4. I dumped the GG calls but I should have held on for a better price. However the buy signal for the gold shares is off now. That said, the gold indices closed on their highs and there is probably more room to run here. I'll take the 280% gain and try to move on. There is always room for improvement. I should have and could have done better. But at least that trade had a decent game plan, to get long on any pull back. We broke out, which I missed. Gold then pulled back towards the breakout point and gave you a chance to get long again. It then took off again from there. I was fortunate to get some calls on the pull back. GE was down 1/2 on average volume. I tried and failed there but who knows? August calls perhaps? The market can't go down forever and GE most likely would move with it. Mentally I'm tired. Didn't get enough sleep and the trading takes its toll. I always try and do my best with each trade but it doesn't always seem that way. Risk is something that can't be taken lightly. Risk must be dealt with in a positive manner to be successful. It's hard to know when to take it and when to eliminate it. There are 4 days left in the July option cycle. I would like to perhaps try an OEX call trade at some point. But the more prudent thing at this juncture might be to look out to August. Not try and do something stupid here for the rest of the week. But you never know. These are interesting times to say the least.
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