Tuesday, September 08, 2009
The Dow continued to the upside by 56 points on average volume. Advance/declines were about 3 to 1 positive. I suppose I should have held those OEX calls for another day. But it doesn't matter now. I bought some OEX puts today. It is a risky trade but they all are. The summation index will move to the upside today but I think that it will be a sideways move before we head lower. I could be wrong. The option premiums on the puts remained higher compared to the calls for the OEX. We'll see what happens. Gold was up a couple bucks but opened much stronger. We were over $1000 but pulled back. The XAU gained 1/4 after being up 7 points. ABX, GG and NEM all had fractional losses after being much higher. The volume was heavy and it was a one day reversal to the downside. The dollar was weaker but gold could not hold its gains. Oil was higher as well. I don't know what it all means but I will get long the gold shares as we snap back to the breakout point. It won't be easy though. I'll have to go over things later today. Mentally I'm feeling OK, could have slept better. So now it's the OEX puts to keep an eye on. The stop-loss order is already in. This may not have been the best set up technically but I believe it could work until the market proves it otherwise. That could be as soon as tomorrow.
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