Thursday, December 18, 2008
The market fell down today, off 219 points on average volume. Advance/declines were negative. However the breadth of the market hasn't deteriorated as it did in the past couple of months. I remain confident of higher prices going forward. I don't think this is the start of a huge decline but I've been wrong before. Summation index still heading higher. I'll be looking for calls. Gold fell today, down about 8 bucks on the futures. It dropped more in the aftermarket. The XAU fell almost 9 points. ABX, GG and NEM all lost about 2 points. Volume was average. The dollar bounced today. I still am a believer in the gold shares. Volume has been strong to the upside. Perhaps the January calls. However, the weekly chart on the gold shares will look bearish unless there is a huge rise tomorrow. GE got killed today on a credit downgrade. It lost 1 1/2 on heavy volume. I still like the January calls there and am keeping an eye on them. Perhaps a purchase there next week for the new year. Mentally I'm doing OK, a bit tired with not enough sleep last night. After tomorrow, holiday time will be upon us. Volume will be low and the option premiums should decay. That's what usually happens but this has been a pretty intense trading year so who knows? I still want to get some January calls at some point. I'll try my best to pay attention. The discipline and focus required hopefully will return soon.
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