Friday, June 10, 2011
No follow through to yesterdays weak bounce as the Dow lost 172 points on light volume. The advance/declines were 4 to 1 negative. I dumped the OEX calls that were profitable yesterday as today they turned into losers. Basically a 50% gain turned into a 50% loss. Not a lot of money involved once again but the constant inability to do the right thing is what the problem is. Actually my exit yesterday missed by a dime and then my exit today was only partially filled so I simply had to bail out at the market on the remainder of the order. Oh yes and pay twice the commission. There is nobody to blame but myself, as usual. Getting back to the stock indices, oversold and staying there. Summation index heading lower and the trend is down. Then why did I try the OEX calls? Because that trade did work, I just didn't get out right. But now getting the puts next week may have too much risk. I'll consider things over the weekend. GE fell 1/4 on average volume and is right at its 200 day moving average. I would expect GE to find some kind of support here. GE is in the same oversold and staying there mode. Gold lost $5 today and a bit more in the aftermarket. The XAU fell 3 1/2. ABX, GG and NEM all had fractional losses ranging for 3/8-7/8 on average volume. The gold shares are following the markets down however there might be a double bottom forming on the XAU daily charts. Next week will be telling there. The dollar had a great day in the flight to safety trade. But the precious metal did not follow. Perhaps because the dollar was so strong. Mentally I'm feeling a bit frustrated after watching a winning trade turn into a loser. The fact that I wasn't filled on my exit order yesterday irks me. But it has happened before and will probably again because I am simply a small player in the game. I don't have the same access to the marketplace as the bigger players. That is a fact of trading life. That doesn't mean that I can't be successful. It does mean that I have to make adjustments going forward. I'll ponder these things over the weekend as well as check out the charts. The trend is down until further notice and we've seen the highs for year at this point. Only one week until the June expiration and any trade put on will carry even more risk than usual. It's Friday afternoon and time for a break.
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