Thursday, September 25, 2008
A bailout deal is close was the news today and the Dow rallied 196 points on good volume. Advance/declines were positive. So who knows what happens tomorrow. It's a crazy time in the game. We were up over 300. It is practically impossible to trade the OEX here with all the volatility. As I've said before the normal technicals just don't work. So it's the sidelines for now on the OEX. Gold lost $13 and the XAU fell 4 points today. ABX lost 1 3/4, GG off 2 and NEM dropped 1/2. Volume was pretty good again. I'm still trying to be patient there and todays action shows why. We are still overbought on the gold shares and I will try and wait until next week to get some calls. And even then it may not be the right play. So we'll see where the gold market goes from here. GE was up 3/4 on heavy volume. A lot of premium in the options there at the moment. I'm going to have to tread lightly for now. Mentally I'm doing OK, slept well enough. Patience isn't easy but sometimes it must be done. I would like to let this first week of the option cycle pass and take it from there. So far so good on that count. I will probably wait and see how the market reacts to this bailout before taking any positions. I'm looking to get long the gold shares at some point here as I've said before. I haven't had a decent signal one way or the other in the OEX for quite some time. Eventually that will change. Until then I'll try and sit on my hands.
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