Friday, October 10, 2008
Yes, it's a crazy time in the markets. We were down over 500, up almost 300 and closed off 128. Volume was heavy. The advance/declines were 2 to 1 negative. I think we are near the bottom. Perhaps a retest of the lows on Monday and a rally from there. That's my guess. We are as oversold as it gets. But who knows? In this type of atmosphere, anything goes. Gold got clobbered today, down $30 after being up $30. ABX, GG and NEM were all off 4 to 5 dollars on heavy volume. I dumped half the GG calls for an 80% loss. Probably should have sold them all but I do expect a huge rally at some point next week that will bring everything higher. I could be wrong. I really needed to be up early and things might have worked out better but I'm still sick. You can't expect good results if you're not up to the task. Definitely a bearish move for gold. GE was higher by about 1 3/4 today on insanely heavy volume. I think you have to get some calls there because that trade could work. What I didn't like was the options in December that I'm looking at barely moved even with a decent move in the stock. So we'll see. Perhaps I'll try it on weakness Monday. Mentally I'm spent. Tough enough to play the game when you're feeling good, which I'm not. I really should have just bailed out of whatever trades I had the day I felt ill. But it's always easy to look back. I will try and take it easy over the weekend but there are a lot of things to do. I do need a rest though. There is no making sense of what is happening at the moment. The sidelines are not a bad place to be. Cash is still King in my opinion. Time for a break.
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