Tuesday, September 21, 2010
It was an up and down session with the Dow ending with a slight gain of 7 points. Volume was average. The advance/declines were negative. The overall market was weaker than the Dow. The Fed made its announcement and we gyrated after that. We were down 40 and up 70. Still very overbought here short and medium term. My OEX puts almost got stopped out at the highs for the day but somehow were not. They are still in the red. We'll see if they last tomorrow. On to gold, which sold off early in the day and then roared back after the Fed announcement as the dollar plummeted. The futures closed off $6 but then gained all that back and another $7 in the aftermarket. The XAU sold off and came back as well, up 1 1/4. The gold shares sold off early and I was stopped out of the ABX call trade for a loss of 40%. ABX then turned around and the same position would now be up 20%. That is the downside of having the stop loss order. Sometimes you lose the position and it would of worked. But I have to limit my losses. ABX was up 1/3, GG up 1/2 and NEM up 7/8. Volume expanded to the upside. Gold is the place to be at the moment as it is attracting new funds. It has been the place to be for a while. If the dollar continues to break down here, gold will flourish. Mentally I'm feeling tired, did not sleep well or enough. I'm disappointed in the gold trade loss but it's been that type of year. Perhaps this OEX trade will work but it could be stopped out tomorrow on market strength. We'll see. Now that the Fed is out of the way, we'll see what happen overseas tonight and go from there.
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