Thursday, October 13, 2011
A little bit of selling today as the Dow fell 40 points on light volume. The advance/declines were negative. The overall market was stronger than the Dow. Summation index is still heading higher. The trend has changed to the upside. Once we get past 1220 on the S&P 500, I expect the rise to accelerate. That's my best guess at the moment. GE dropped almost 1/4 on light volume. Overbought here but we could remain that way. I still want to own some January calls but I think I'll wait until after the earnings report next Friday. Gold fell $14 on the futures and the XAU lost 3 3/4. The US dollar was flat today. ABX down 1 1/8, GG fell a buck and NEM off 1/3. Volume was light. No trades in the gold shares for now. Mentally I'm doing OK but could have slept better. The recent OEX put trade loss was my biggest of the year. So it is no surprise that the confidence level is down and I'll tread lightly going forward. I will try not to make any short term trades in the last 6 days of the October option cycle but there are no guarantees. We'll get through Fridays trading and go from there.
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