Wednesday, May 02, 2012
The Dow opened lower and stayed in the red all day. We finished the day with a loss of only 10 points though. The advance/declines were negative. The NASDAQ was higher on the day and that could bode well for the bullish cause going forward. The summation index is moving higher. The short term technicals are still overbought here though. It's a mixed bag technically. Waiting on Fridays employment report. GE was pretty much flat on the day after being lower early. No trades there for now. Gold fell on the strength of the US dollar. The dollar rose due to European worries again. The gold futures fell 8 bucks. The XAU lost 2 7/8. ABX off 1 1/8, GG dropped 1/2 and NEM fell a buck. Volume was light with the exception of ABX which was a bit above average. The ABX earnings were a bit less than expected and the stock dropped from the open. My ABX calls are losers. The lower strike price later purchase is now in the red as well. This trade will be a big loser as I built a position and was wrong. As I said yesterday, waiting for the earnings report is never a good strategy. Mentally I'm feeling tired, did not sleep enough. The stock indexes are holding up pretty good here despite lackluster economic numbers of late. We still have to wait on Friday though. However it seems at the moment the market wants to move higher despite the numbers. As for the ABX trade, it's a loser. There was no discipline and the stop loss order was never put in. These are mistakes that should never happen. You've got to keep moving forward though. I'll simply have to regroup and move on to the next trade. Confidence will be the issue for me going forward. The technicals were oversold for ABX and the Gold/XAU ratio was in the buy zone. The trade still didn't work. I should have cut the loss early but didn't. It isn't the first time and it probably won't be the last. It will end up being close to a 100% loss. That is inexcuseable. But the markets move on. We'll see what happens overnight and go from there.
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