Wednesday, September 17, 2008
Volatile days are upon us. The Dow rose 410 points today on what I expect was extremely heavy volume. Advance/declines were over 2 to 1 positive. The market moved up a few hundred points in the last hour on the Treasury secretaries comments of another bailout. Bear market rally? My guess is that it was. A one day wonder until proven otherwise. Gold went crazy again, up $50 on the futures. However it began to sell off on the Treasury announcement. The XAU finished flat and the gold shares had one day reversals to the downside. ABX and GG were off on the day but the quotes are not reliable due to the volatility. Volume was the heaviest that I've ever seen it. NEM lost over 3 points. All the gold shares were higher early and closed much lower on the day. I dumped all my GG calls. Some had a 15% gain and the rest had an 85% gain. I was lucky to get out alive. That said I am looking to buy back the calls cheaper, perhaps even tomorrow. I don't think the rally in gold is over. GE was up 1 1/2 on insane volume again. I'm looking at the calls here on any type of pull back. It may be too late. Due to the volatility the options are very expensive. But I think getting long there will work. Mentally I'm tired and not feeling well. The markets don't care how you feel. It's been a crazy week so far and I suppose tomorrow will be no different. Expiration and we'll see what happens. I'll be checking things tonight but I think getting long gold again is the correct move at the moment.
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