Friday, January 29, 2010
Opened higher and closed lower. We were up over 100 points early but closed with a loss of 55 points on the Dow. Advance/declines were over 2 to 1 negative and the volume was good. GDP was better than expected but the market could not hold the gains. Something is going on here because we are oversold and staying there. Summation index still pointing down. We haven't even seen a decent bounce yet. I still like the OEX puts before the employment report if we get some type of upside. Gold only lost a buck but the XAU followed the overall market and was off 5 1/2. ABX and NEM each dropped more than a buck, while GG was lower by 1 3/4. The dollar continues to march higher. My ABX calls were finally stopped out for a loss of 45%. Not a lot of money in the trade thankfully. It didn't feel good from the start and never had a chance to work. The Gold/XAU buy signal is still in place but it doesn't look like it's going to work. Oversold and staying there on the gold shares as well. I my try again on Monday but I will have to check things over the weekend. It may be time to forget about gold for a while. Mentally I'm OK, could have slept more. The market can't seem to get any traction to the upside. No doubt oversold and should have seen some type of rally by now. If we get one early next week I'll probably get some OEX puts. So we'll see. Another losing trade closed today but I'm moving on. Sometimes you just get it wrong. For now it's the weekend and time for a break.
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