Monday, May 17, 2010
We were down for much of the day today but the Dow came back and managed a gain of 5 points on good volume. Advance/declines were negative. I'm expecting a positive bias for the beginning of the week. I would expect tomorrow to be an up day. My game plan is to buy the OEX puts at some point on Wednesday if we are higher. It's all subject to change and as usual I could be wrong. Often am. Oversold here and due to bounce again. Gold was flat on the futures but fell in the aftermarket. The XAU lost almost 4 points. ABX and GG were off around a buck. NEM dropped 2/3. Volume was average. I put in an order for some ABX May calls last night and it got filled this morning. I did not expect that. Not a lot of money in this trade and it is showing a slight loss. Risky, that is why I don't have the usual amount of money that I would normally trade here. This already has the feel of a trade that I don't want to be in. I'm out tomorrow or Wednesday. The dollar was much higher today and then moved all the way back. With gold weakness in the aftermarket, perhaps the flight to safety trade is being taken off the table. We'll see. Mentally I'm doing OK, did not feel well yesterday. 4 days to go on the May option cycle. So now I'm in the next trade and it may be that I am just late to the table on this. I like the OEX put idea for later in the week better. However the ABX calls will be the focus for now. We'll see what gold does overnight and go from there.
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