Today we witnessed a dramatic one day downside reversal as stock indices had a huge gap up at the open only to turn around and close with big losses. The Dow fell 386 points on heavy volume. The advance/declines were better than 3 to 1 negative. The summation index is moving down. We saw the rally out of nowhere that we were looking for but were not able to take advantage of it. Things were simply moving too fast for our liking and there was only a couple of days left in the November option cycle. Opportunity lost you might say and you are not wrong. However I am more of a position trader as my short term trades usually end up in defeat. The NASDAQ led the way lower despite a good earnings report from NVDA which produced the early market buying. The S&P 500 was up over 125 points early on only to roll over and finish at the lows for the session down over 100. That is some kind of crazy volatility. The short term indicators for the S&P are oversold and the daily candlestick chart looks bearish. Near term support should kick in around 6500 but there are no guarantees. Something is going on here but we ceratinly don't know what. The market holds the ultimate truth. Gold lost $8 on the futures. The US dollar finished flat and interest rates dipped. The XAU slid 15 points, while GDX lost 3 1/3. Volume was heavy to the downside. The short term indicators for GDX are back to heading lower and it closed below the 50 day moving average again. Mentally I'm feeling OK. The VIX was higher and that is not a surprise. The short term indicators are overbought and staying that way for now. As long as the VIX remains above the 20 level it will be a rocky road for stocks. Not sure how long this lasts. Option expiration Friday tomorrow which could be crazy but I can't see it being as volatile as today. But markets go where they want. Asia and Europe finished higher overnight as they were trading off of the NVDA earnings. We'll close out the week tomorrow.

Volatility is in charge for now as the Dow gained 47 points on heavy volume. The advance/declines were negative. The summation index continues down. We were up and down more than once today as the market tries to figure out its next move. After the bell NVDA earnings should get things going overnight. Employment data due out tomorrow morning. I'm still thinking about perhaps trying the SPY puts if we see a big rally tomorrow but the more prudent course of action would be to sit things out with only 2 days left in the November option cycle. The NASDAQ led things higher today but it wasn't exactly what you'd call a rally. More of just hanging around until tomorrow. The S&P 500 posted a small gain. The short term indicators for the S&P remain oversold. Gold was up ten bucks on the futures. The US dollar was higher and interest rates finished generally flat. The XAU gained 3 7/8 and GDX was up 3/4 again. Volume was average. The short term indicators for GDX are trying to turn back up. Mentally I'm feeling OK. The VIX ended a bit lower today which fits with todays market price movement. The short term indicators here are still overbought. Not sure what's next for the VIX. We'll see how things go early tomorrow morning to decide if a trade in the SPY options is worth the risk. Europe was lower and Asia mixed overnight. I'll keep an eye on tonights headlines.

Continuing to sink as the Dow fell 498 points on heavy volume. The advance/declines were slightly positive though. The summation index is moving down. The market dropped for the first hour and a half, attempted to make a comeback and then dropped again in the final hour. The NASDAQ led the way lower and that is not a plus. The S&P 500 is now solidly below its 50 day moving average. The short term indicators are oversold but not completely so. 3 days left in the November option cycle. I should remain on the sidelines as the short term trades are not usually my best efforts. But we'll see. NVDA earnings after the bell tomorrow followed by some employment data on Thursday. Perhaps if we get some kind of short term rally we can try the SPY puts into the close on Friday. But it would be pretty risky. Gold was off $3 on the futures. The US dollar finished flat and interest rates were slightly lower. The XAU was up 3 3/8, while GDX added 3/4. Volume was a bit above average. The short term indicators for GDX are beginning to stall. Not trades in mind for the GDX options at the moment. Mentally I'm feeling OK. The VIX jumped up again today and remains above the 20 level. It has reached short term overbought. However as long as it remains above 20, volatility is the rule. If we somehow see a big rally out of nowhere in the next couple of sessions, that could give us the opportunity to buy some SPY November puts to hold into the close on Friday. But the timing in and out would have to be precise and that is extremely hard to do with so little time left in the November cycle. Asia and Europe got whacked last night as we are seeing a worldwide exit from stocks. We'll see what tomorrow brings.

Monday brought out sellers as the Dow fell 557 points on heavy volume. The advance/declines were better than 4 to 1 negative. The summation index is moving down. The Dow was the leader heading lower as all the major averages suffered losses. It is options expiration week and the last full week before Thanksgiving. So whatever needs to be done by the main players will take place this week. We will also start to get some economic data now that the US government is back in business. NVDA earnings after the bell on Wednesday should provide reasons for movement as well. On the technical front the S&P 500 closed below its 50 day moving average. The short term indicators here are moving lower and are not yet oversold. So the path of least resistance appears to be lower. With the summation index heading down it looks like some sustained selling is at hand. That said, I was looking at the SPY November calls today but did not make a purchase. I may consider them again tomorrow but the prudent course of action is probably to remain on the sidelines. We almost have a short term buy signal but not quite there yet. Also purchasing calls here flys in the face of the techncial evidence heading lower. Gold fell fifty bucks today. The US dollar was higher and interest rates were a touch lower. The XAU was off almost 5 points and GDX lost about 1 1/4. Volume was a bit above average. The short term indicators for GDX are moving down with plenty of room to go. GDX is once again trying to hold on to the 50 day moving average. Mentally I'm feeling OK. The VIX was higher and closed above the 20 level. The short term indicators on the VIX are almost overbought. If the VIX stays above 20 we'll see more selling and volatility. Right now that seems to be where the market is headed but we all know that things can turn on a dime in this game. Europe and Asia started the trading week on a down note with the exception of India. I'll keep an eye on the overnight developments.

Still a mixed picture as the Dow fell 309 points on heavy volume. The advance/declines were negative. The summation index is turning lower. The NASDAQ posted a small gain and the S&P 500 had a slight loss. Indices opened with huge gaps lower and the NASDAQ made it all the way back to positive territory for a one day upside reversal. The short term indicators for the S&P 500 are beginning to stall at the mid-range level. The S&P is once again trying to hold on to the 50 day moving average. It appears that things could go either way here but we'll look at the charts this weekend and take it from there. Gold dropped $111 on the futures. The US dollar was a bit higher and interest rates rose. The XAU lost 2 2/3 and GDX shed 7/8. Volume was good to the downside but the gold shares held up much better than the metal itself. They also finished well up from the worst levels of the session. But we still don't have any GDX option trades in mind right now. Mentally I'm feeling OK. The VIX traded up to 23 today only to fall back below the 20 level at the close. The short term indicators here are also at the mid-range level. Not sure where the VIX is going though as my latest readings of its daily candlestick chart have been off. Plenty of work to do this weekend as we head into option expiration week. Hopefully we'll get some kind of SPY option trade going next week. Europe and Asia closed lower today. It's Friday afternoon and time for a break.

Sellers returned today and the Dow fell 797 points on heavy volume. The advance/declines were better than 3 to 1 negative. The summation index is back to a stall. The NASDAQ led the way lower and has been the weakist link lately which isn't a good sign for the bulls. It looks like my idea of new all time highs for the S&P 500 in the near term were wrong. That index got clocked today as well, down over 100 points. The short term indicators here have rolled over with room to go. We were not totally convinced that things would continue higher after bouncing off of the 50 day moving average on the S&P but it looks like we've missed the chance for the SPY November puts. If we continue lower tomorrow the weekly chart on the S&P will have a bearish look as well. Not exactly sure what is going on here but the market always know more than we do. Gold dropped $48 on the futures. The US dollar was lower and interest rates ticked up. The XAU fell 8 points, while GDX shed 2 1/4. Volume was heavy heading lower. The short term indicators for GDX have started to turn lower. Not sure where the gold shares are headed next. I don't have any GDX option trades in mind right now. Mentally I'm feeling OK. The VIX was up today which fits the down market. It closed at the important level of 20. The short term indicators are back to moving up with room to go. The VIX is bouncing from its 50 day moving average that it could not get through. That is not a positive for stocks. Running out of time in the November option cycle but we won't try anything just for the sake of making a trade. Asia higher and Europe lower overnight. Tomorrow should be interesting.

The Dow continues to lead the way here as it gained 314 points on heavy volume. The advance/declines were about even. The summation index is moving higher but does not seem to have conviction along the way. The NASDAQ posted another small loss and the S&P 500 managed to eek out a slight gain. Some of the short term indicators on the S&P are moving sideways while others continue higher. Not yet short term overbought here. I'm still thinking that the S&P 500 is about to make new all time highs here but I could be wrong. The recent bounce off of the 50 day moving average started out strong but seems to be losing steam. Maybe we'll try the SPY November puts ahead of the weekend. Gold jumped $84 on the futures. The US dollar finished flat along with interest rates. The XAU climbed ten points and GDX added another 2 1/2. Volume was good again to the upside. Some but not all of the short term indicators for GDX are overbought. It looks like the gold shares are on their way to new all time highs but we'll have to wait and see about that. Mentally I'm feeling OK. The VIX was a but higher today and remains above its 50 day moving average. The short term indicators here are beginning to stall. Not yet oversold here either. I don't know what to expect next on this indicator. We'll look things over again tonight and go from there. Seven days to go in the November option cycle. Asia and Europe were up overnight. We'll see how things go tomorrow.