Tuesday, July 13, 2010
The market took off to the upside today as the Dow gained 146 points. Advance/declines were 6 to 1 positive and the volume was average. The strong open blew through my stop order and I had to take a bigger loss than anticipated. About 80% on that OEX put trade as I'm starting off the 2nd half of the year right where I left off the first half. Overbought and staying there but I'm still a believer that this rally isn't for real. 3 days left for the July option cycle. I am leaving in another open order for OEX puts and moving to a higher strike price. It's risky to be sure but the short term sell signal is in place. We'll see. Gold had a good day as the dollar was weaker. The precious metal gained about $15 on the futures. The XAU only rose 1/3 after being higher early. ABX, GG and NEM were mixed with fractional moves after being higher early as well. Volume was light to average. It looks like the flight to safety trade is still being unwound here in the gold shares. I will try them again at some point this summer. That's my thinking at the moment. Mentally I'm doing OK, slept well. Another trade and another loser as this year is like a broken record. Plenty of time left, however it may be time to take a break and wait for the anticipated drop in autumn. I'll wait and see if this next OEX trade gets filled tomorrow. Perhaps I'll simply cancel it but there will be some downside at some point by Friday.
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