Wednesday, October 21, 2009
The Dow fell apart in the last hour and closed with a loss of 92 points. We were higher for most of the day. Volume looks a bit better than lately and the advance/declines were negative. Perhaps the summation index is about to fall off of the ledge. Time will tell and it will tell soon. We are long overdue for a sustained decline. But who knows? we could turn around tomorrow. Still overbought on a medium term basis. Gold was up $5 on the futures but the XAU was little changed. ABX, GG and NEM had fractional moves one way or the other on average volume. All were up over the course of the day and sold off near the end of the day as well. I'm looking at the gold shares but no trades are imminent. The dollar hit fresh lows and that is the same old story. Mentally I'm a bit tired, could have slept better. No rush to trade here as my many losses this year have caused me to re-evaluate my trading methods and I'm in the process of coming up with some changes to my rules. Following the rules is tougher than making them. However the discipline that has been lacking in my trading this year must be addressed. As well as the excessive risk taking. I'm working on it.
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