Tuesday, September 16, 2008
Opened lower and closed higher for another one day reversal today. Not that it means anything in a market like this. The Dow was higher by 141 points on good volume. Advance/declines were negative. No follow through to the downside on a closing basis but these are crazy times. Fed stood pat on interest rates and the market rallied. Interest rates won't change the carnage that is happening at the moment. Things will change and be volatile day to day. I'm looking for weakness on Thursday but that is a guess. The sidelines are probably the best place to be at the moment. Risk is high. Gold lost around $6 but the XAU rose 2 1/2. The opposite action of yesterday. ABX up 3/4, GG up 1/2 and NEM up over a buck. Volume heavy again. The gold shares followed the overall market. Oil was down again and the dollar was stronger. Things just aren't following the normal patterns at the moment. Makes for tough trading. GG calls still in the red and probably not coming back. GE opened about $3 lower than where it closed. Amazing. It ended up 1/2 on insane volume again. I can't touch it at the moment in a market like this. Mentally I'm a bit tired, did not sleep well again. Expiration week and volatility at an extreme. I think we'll head back down this week before any stabilization but who knows? Trading in this type of environment is extremely risky. There will be better times to take chances. Yes, the profits now could come quickly but so could the losses. The normal technical analysis doesn't work when we get like this. There is nothing wrong with waiting for a better trading situation.
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