Thursday, May 03, 2012
A bit more to the downside before tomorrows much anticipated employment report as the Dow fell 62 points on average volume. The advance/declines were 2 to 1 negative. The summation index is still trending higher. The technicals for the stock indices are in overbought territory. Tomorrow will set the tone for the next extended move in my opinion. But that's a guess as usual. GE was off 1/8 on light volume. Still stuck in the range between 19 and 20 on the daily charts. No trades here for now. Gold fell $20 on the futures and the US dollar finished the day with a slight gain. The XAU lost 5 3/4. ABX off 1 1/3, GG fell 1 3/4 and NEM lower by 1 1/2. Volume was good. The gold shares have been beaten down to a level not seen since 2010. Oversold and staying there. Gold itself has held up much better. Regardless of the employment report tomorrow, my ABX calls are dead. Mentally I'm feeling OK. Tomorrow should be interesting and I have no clue as to which way things will turn out. We will simply have to wait for the markets reaction to the numbers. I have no trades in mind for the May option cycle after the debacle with the ABX trade. I will have to take a step back and reassess my own trading tactics because obviously what I've been doing lately just isn't going to work. With the exception of the first trade of the year, my results have been horrible. Confidence is a key factor for success and right now it is an area that I'll need to work on. My mental state is in a down mood because I did not have the discipline to simply take the loss early. I definitely put too much emphasis and money on the ABX trade. It cost me both mentally and monetarily. I'll need to regroup. We'll see what happens tomorrow.
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