Tuesday, August 26, 2008
The Dow gained 26 points on light volume. Advance/declines were positive. No downside follow through and that was a positive. It felt more like summer in the markets today. That could be the story for the rest of the week. Gold moved up a couple bucks and the XAU gained a 1/2. ADX and GG were flat, while NEM rose 1/2. Volume was light again. Oil was up a touch and the dollar was stronger. The GG calls are losing time premium as we drift. I've got a stop loss order in. The stochastic looks like it could roll over here earlier than expected. If it does than I'm out and I'll look to buy them back next week. The other scenario would be that we continue to rally here in GG but that doesn't look like it will happen this week. But you never know. GE lost a dime on light volume. Perhaps I'll take a look at the September calls there. If I had the guts I would strongly look at some OEX calls here. But I don't have a clear signal yet. Mentally I'm feeling a bit tired, did not sleep well last night. Trying to do the right thing in the GG trade. The stop loss order eliminates some of the risk, which is important. However there is plenty of time for that trade to work. We're still oversold on a weekly basis. One of my thoughts is that there could be some selling in GG as we close the month and losing positions are eliminated. But that's a guess. Technically it could be rolling over here, short term. We'll see what tomorrow brings.
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