Wednesday, February 25, 2009
The Dow lost 80 points today on average volume. Advance/declines were negative. Summation index still pointing down. Oversold on a medium term basis. My guess here is that we either hold up and move higher or crash. End of the month on Friday. GE lost a dime on heavy volume. My calls were a tick away from being stopped out. I adjusted the price down 5 ticks which probably wasn't the smartest thing in the world to do. We'll see what happens. Gold lost 3 bucks today and is selling off in the aftermarket. The XAU fell 1 1/4. ABX, GG and NEM were all off fractionally on heavy volume. I'm going to try and wait it out here for the gold shares and perhaps go out to April on the calls. Short term oversold on the gold shares here. However I'm inclined to let a base build, if and when that happens. No OEX trades as the premiums are still high with the new option cycle. Mentally I'm feeling tired, did not sleep well. Interesting times in the market at the moment. It's possible we could just grind lower here as well. The GE trade was supposed to be a bounce trade and we didn't get much of a bounce. That could be a problem. However the GE chart looks like this could be the bottom so we'll have to see how it plays out.
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