Friday, October 17, 2008
Option expiration Friday as the Dow lost 127 points on good volume. Advance/declines were positive. We opened lower, had a nice gain and then closed down for the day. We are forming a bottom here as far as I can tell. That's my guess at this point and I'm sticking to it. Sure we could go down to the lows again but I feel that they will hold this time around. So we'll see. Gold had another bad day, off over $15. The XAU was down 2 1/2. ABX, GG and NEM all down on good volume. Will gold come back? We're under $800 now. The dollar is the place where money is flowing. I guess I'll have to be patient with the HL shares that I own but I don't expect any rallies there anytime soon. It looks like a wait until next year scenario there. GE lost 1/3 on very heavy volume. I adjusted the open order that I have for December calls. I still think that is a trade that will work. But sometimes GE moves sideways for months at a time. And I always think every trade will work but we know better than that. I'm willing to give it a try though. Mentally I did not sleep long enough and haven't been 100% for a couple of weeks now. I am feeling better but not all the way back yet. There's work to do over the weekend. Charts must be checked. Reading must be done. The game never stops. I do think that the worst is over for now. Perhaps a rally will take place or it could be a few months of sideways action instead. Time will tell. For now it's the weekend and time for a break.
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