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Thursday, June 14, 2012

Back and forth we go as the stock market tries to figure out which direction it wants to go.  The Dow gained 155 points today on light volume.  The advance/declines were better than 2 to 1 positive.  No worries about Europe today but that could change at any time.  It is still a headline driven marketplace.  It still has the feel of higher prices coming though to me.  GE was up 1/3 on good volume.  Overbought and staying there for GE.  It is looking more and more as though GE is the proxy for the overall market at this point.  Missing on the July calls cost me more than just a missed trade as I'll explain in a minute.  Gold traded flat on the futures but rose in the aftermarket about $5.  The US dollar was lower yet again today.  The XAU gained 1 1/8.  ABX, GG and NEM had fractional moves one way or the other on average volume.  I dumped the ABX June Calls for a 95% loss.  I did not even know it was expiration week until I received a notice from my brokerage about this trade this morning.  I had been paying so much attention to the GE July calls that I thought the June options expired next Friday and not tomorrow.  Call is absent minded, foolish or just plain stupid.  That has never happened to me before in my entire trading life.  Lack of focus on the trade at hand?  Really?  I'm planning my strategy for an extra week of option life that isn't even there.  There wasn't a lot of money in the trade thankfully but that mistake was ridiculous.  Yeah, it's an embarrassment but it happened and there is no excuse.  Mentally I feel like an idiot.  Am I really trading the already difficult options market and I don't know when the Friday expiration is?  Maybe I need a break.  So tomorrow is expiration Friday and then we have the Greek election that the whole world is so focused on.  The summation index continues higher and I am going to guess that the summer rally began with the low on June 4th.  I don't have any trades in mind at the moment.  Perhaps I'll simply bury my head in the sand for the summer.  Doubtful. 

1 comment:

Unknown said...

Interesting blog, I never read about it explained this way, useful for the trading market.
























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