Tuesday, September 09, 2008
It's a crazy market as the Dow lost 278 points on very heavy volume. And it's only Tuesday. Advance/declines were 6 to 1 negative. They tried their best to keep things up yesterday on heavy volume but it didn't work. It has the feel of a market that is going to fall apart. Summation index should turn to the downside here. I don't know what is going on but the selling continues. Gold got clobbered, off $10 on the futures and another $10 in the aftermarket. The XAU lost 11 3/4. ABX and GG off over 2 points. NEM shed over 3. Volume was extremely heavy. I have not seen anything like this downdraft in the gold shares before. The Gold/XAU ratio is in record territory. Carnage. The GG calls are dead. I bought some shares of HL today. I know, I must be crazy. Will the gold shares just go to zero? I don't want to say no but... It's a crazy game. GE lost a buck on heavy volume, reversing yesterdays gains. Mentally I'm doing as well as can be expected. Of course I should have gotten some OEX puts this morning but did not. Staying in a losing trade is costing me more than it should. I have to focus on what I'm in already, which takes away from trying other opportunities. That is something that I really need to work on. In retrospect I should have dumped these GG calls long ago. It seems as though I am making the exact same mistake as the previous trade involving GG. That's never a good sign. What happens tomorrow? Stay tuned.
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