Tuesday, February 22, 2011
The stock indices finally took a hit today as the Dow lost 178 points on average volume. Advance/declines were over 6 to 1 negative. It was the biggest one day loss in quite a while. Now I ask you, what was different today than from last Friday? The Middle East uprisings have been going on for weeks. We've been overbought for weeks. Then why wait for today to have a sell off? Oh, Friday was the expiration of the February options. Gotta make those calls good for everybody that held them. So now we are into the March option cycle. Interesting? Do yourself a favor and don't ever forget the kind of game that you're playing here. GE fell around 60 cents on good volume. Almost back to the uptrend line from the end of November. I have to sit it out here though. Gold on the futures was off $6 after being up $20 yesterday. The XAU fell 3 1/4. ABX, GG and NEM had fractional moves one way or the other on average volume. I'd look to the April option cycle there for the calls. But that's a guess as usual. Mentally I'm spent as I'm dealing with issues far away from the markets. Can't say when the next post will be.
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