Some more downside today as the Dow fell 53 points on better volume.  The advance/declines were negative.  The summation index is still trending lower.  We were off over 100 points during the session but made a comeback.  Still waiting on Fridays employment report.  But the volume did pick up today so perhaps the players are returning earlier than usual.  If we do get some weakness tomorrow, I might try the SPY September calls.  I'll be looking things over again tonight.  We are short term oversold on some of the major stock indices.  GE was lower by 1/8 and the volume picked up here as well.  Gold fell another $5 or so on the futures.  The US dollar finished little changed.  The XAU dropped 1 2/3, while GDX shed 3/8.  Volume was average.  Mentally I'm feeling OK.  The Bollinger bands on the S&P 500 are implying a big move in the near future.  My guess will be that it will happen on Friday.  Which way things go is the question.  What I don't want to do here is make a trade just for the sake of making one.  To me things are leaning towards a bullish resolution to the long sideways congestion that we've endured throughout the summer.  It isn't the best signal to go long before Friday but I do believe the odds lean that way.  I'll have to look things over tonight.  Asia was mixed and Europe lower overnight.  My guess is that Thursday will be a wait and see affair.

Lower today in a listless market as the Dow fell 48 points on light volume.  The advance/declines were slightly negative.  The summation index grinds lower.  The Bollinger bands on the S&P 500 are contracting again and that implies a big move coming.  I do think that we will see a positive resolution to the 2 month long sideways congestion but that's a guess on my part.  End of the month tomorrow and the employment report on Friday are on the horizon.  I may try the SPY September calls if we continue to drift lower into Friday.  GE was flat on the day and the volume light.  Gold was off $13 on the futures as the US dollar continued higher.  The XAU dropped over 5 points and GDX shed 1 1 /3.  Volume was heavy.  Liquidation in the gold shares needs to run its course here shortly or it could turn into more of a rout than it already is.  We've worked off what overbought conditions there were and are now stuck in oversold mode.  The combination of a stronger dollar and potential rise in interest rates in the US has ended the gold rally.  Mentally I'm feeling OK.  A bit more volatility lately but it's nothing like we've seen before.  I think we'll probably be on hold until Friday.  Any September option cycle trade should probably be put on before then.  The market will most likely take our cues form the jobs report.  The favored scenario here would be a drift lower into the close of Thursday to set up the SPY calls.  The market rarely cooperates though.  Europe and Asia were mixed overnight.  Traders there are also awaiting the employment report.  We'll keep an eye on the overnight developments.

We started the week off with a pop to the upside as the Dow gained 107 points on very light volume.  The advance/declines were almost 3 to 1 positive.  The summation index will be trying to turn around once again.  No sellers today but we can never trust a light volume rally.  We were short term oversold on the S&P 500 and that has now been relieved.  The small stocks were under performers for a change and that is something to keep an eye on.  It is probably too late for the SPY September calls on the short term basis.  If we had early week weakness we could have tried the calls.  But todays price action probably negates that.  GE was up 1/8 and the volume was light.  Gold was little changed today as was the US dollar.  The XAU gained 1 1/8, while GDX was flat.  Volume was about average.  Oversold for gold and the gold shares.  Mentally I'm feeling OK.  Although I'd probably like to wait until after Labor day for the next trade, we do have the jobs report on Friday.  That will most likely be a market mover.  You will want to have your position on before the release.  I suppose that I'll wait to see how the rest of the week plays out before deciding what to do.  If we continue higher on low volume the rest of the week it may pay to go the other way.  But we'll just have to wait and see.  Europe and Asia were mixed overnight with the exception of the NIKK that rallied sharply.  It is the last week of summer and things may get even slower than they were today.  

Volatility returned as we got a one day reversal to the downside.  We opened up over 100 points and then fell down over 100 points.  The Dow finished the session with a loss of 53 points on light volume.  The advance/declines were negative.  The summation index is still trending lower.  Yellen did her blabbering and the market viewed it as negative.  However we all know that a lot can change between now and the middle of September.  The small stocks continue to show strength and as long as that occurs there will be no major decline in my opinion.  I'm now looking at the SPY September calls.  Right now I think we're setting up for a rally in the beginning of September.  That's my guess today.  GE remains flat.  GE can be traded but you really have to pick your spots.  It can go directionless for quite a while sometimes.  Gold came from well off of its highs to finish little changed on the day.  The US dollar rallied on Yellens comments.  The XAU and GDX had fractional losses and the volume was good.  It was interesting how gold and the gold shares this week telegraphed the comments from the Fed today.  I suppose the markets are always speaking if you know how to listen.  But we also know that the next time around just the opposite could happen.  It's the nature of the game.  Mentally I'm feeling OK.  So we got a reversal in the S&P.  Does that mean we're in for a hefty decline?  I don't think so.  My leaning right now is that we are setting up for some upside here soon.  Oversold on the S&P 500 and overbought on the VIX.  The seasonal tendency is for a decline in stocks here but I'm thinking that the beginning of September will go higher.  I've seen it happen before.  I could be wrong but I'm going to look to buy weakness next week.  That is the game plan as of the moment.  That could change after the review of the charts this weekend.  Perhaps some players will return to action next week ahead of Labor day as the employment report will be out on Friday.  Plenty of economic data before then as well.  Plus we'll have the beginning and end of the months to deal with.  So maybe things will finally start to pick up and the summer doldrums will come to a close.  For now it's a late summer Friday afternoon and time for a break.

Another day of the summer doldrums as the Dow fell 33 points on light volume.  The advance/declines were slightly positive.  The summation index continues lower.  Waiting on the blabbing of Fed chairwoman Yellen tomorrow.  I do think that we'll get a positive resolution to the recent price action despite the rollover of the short term technical indicators.  There's no volume and no conviction to price action this summer.  The TRAN was negative today but the small stocks continue to hold up rather well.  As long as that is the case, there won't be any drastic downside moves in my mind.  We'll see.  GE was flat and the volume very light.  Gold dropped another 5 bucks on the futures.  The US dollar was little changed.  The XAU was up 1 1/8, while GDX gained 1/3.  Volume was average.  The gold shares have rolled over and are short term oversold.  Mentally I'm feeling OK.  Thought about getting some SPY September calls today but did not pull the trigger.  I'm still trying to wait for a decent signal or until after Labor day.  The VIX is overbought short term at the moment.  We'll get some Fed speak tomorrow and that will be the motivation for a day.  But what about next week?  This is why it is always best to stick to the technicals.  They look like they could turn around to the upside for the S&P and at the same time roll back down for the VIX.  But nothing is guaranteed.  We could also get more oversold as well.  I'm on the sidelines still for now.  Europe and Asia were both negative overnight.  We'll close out the week tomorrow.

Finally some price movement as the Dow fell 65 points on light volume.  The advance/declines were 2 to 1 negative.  The summation index has been trying to turn around but is heading back down again.  The S&P 500 did form a coil yesterday on an intra-day basis.  We've broken lower from there.  The short term technical indicators have rolled over as well.  We are also in a seasonally weak time period for stocks.  Do I think this is the beginning of a significant downside move?  No.  GE  was off a penny and the volume was light.  Gold fell $18 on the futures and the US dollar was a bit higher.  The gold shares got creamed as well.  The XAU dropped 8 1/2, while GDX shed over 2 points.  Volume was very heavy.  We are now seeing a break in gold and the gold shares that was long overdue.  It isn't the seasonal time of year to expect this but it is happening none the less.  We'll see how far it goes.  Mentally I'm feeling OK.  One day doesn't make a trend so we will have to see where we go from here.  Perhaps it is some front running selling ahead of whatever Yellen has to say on Friday.  The drop in gold today also seems like an exit before the fact.  Sometimes these things just build on themselves.  Perhaps the inability to get above the zero line in the McClellan oscillator is more than I think.  Time will tell.  There is still plenty of time in the September option cycle for a trade.  I may have to move over to the SPY calls if we get oversold on the short term.  The volume is still very light right now and I do not think that any move can be trusted.  I'm also still in the mode of waiting until after Labor Day to trade again as well.  There's plenty to ponder.  Europe was slightly higher and Asia mixed overnight.  I'd expect Thursday to be a lightly traded affair.  

We started out with a pop to the upside and then sold off for the rest of the session.  The Dow finished with a gain of 17 points on light volume.  The advance/declines were 2 to 1 positive.  The summation index is trying to turn around once again.  The overall market remains stronger than the Dow and there won't be any major decline as long as that remains the case.  The small stocks also continue to outperform.  I suppose the idea to wait to trade until after Labor Day is still in place for me.  GE was off almost a dime and the volume picked up a bit.  No trades here for now.  Gold was little changed as was the US dollar.  I suppose gold and the dollar are just waiting for the Yellen speech on Friday before the next move gets underway.  Mentally I'm feeling OK.  We had a chance for something decent to the upside when the day began but spent the day sputtering lower.  This summertime price movement or lack thereof has been frustrating to say the least.  It makes for even more difficult trading than usual.  The sidelines hasn't been a bad place to be.  I'm guessing we'll just wallow around until Friday.  Europe was generally higher and Asia generally lower overnight.  We'll see what tomorrow brings.       

Back and for the was the theme of the day as the Dow fell 23 points on very light volume.  The advance/declines were barely positive.  The summation index is still grinding lower.  We did see volatility pick up a little today but with the light volume, whipsaws are more likely.  It is still summer doldrums activity and we may have to wait for after Labor Day to get things back to normal.  More Fed watching than usual with Yellen blabbing on Friday.  There is nothing else for the markets to go on for now.  GE was up a few cents on light volume.  Gold was down a few bucks on the futures and the US dollar was little changed.  The XAU fell 2 points, while GDX lost 1/2.  Volume was light.  The talk of the Fed rising interest rates is putting a lid on gold for now.  Mentally I'm feeling OK.  The small stocks are still relatively stronger here so I expect a positive resolution to the recent market indecision.  I'd like to see a move up to 2200 on the S&P 500 and then I would seriously consider the SPY September puts.  At the moment we remain short term overbought for the S&P 500.  For now I'll stay on the sidelines and wait for a signal one way or the other.  Europe was generally lower and Asia was mixed overnight.  We'll keep an eye on the action or lack of, overnight.

We began the day with a quick 100 point drop and spent the rest of the session trying to recover.  The Dow fell 45 points on light volume.  The advance/declines were negative.  The summation index has tried to turn back up but it is grinding lower.  The positive expiration week bias did not manifest itself.  The short term technical indicators for the S&P 500 remain overbought.  Any selling has been met with buyers lately.  When volatility arrives it quickly is vanquished.  This has been one of the slowest trading summers in recent years.  The sidelines has not been a bad place.  GE was off over 1/8 on light volume.  Still hanging around in the vicinity of its 50 day moving average.  Gold was off around a dozen on the futures as the US dollar was higher.  The XAU was down 3 points, while GDX shed 3/4.  Volume was pretty light.  Gold has yet to have the positive seasonal bias for August/September kick in.  Mentally I'm feeling OK.  I am looking at the SPY September puts but I can't be predisposed to that trade.  The market has had ample opportunity to fall here technically and it keeps coming back.  We are having a problem getting back up through the zero line on the McClellan oscillator.  However if we can clear that hurdle, higher prices will be in the forecast.  I thought that we would hit new all time highs by expiration and that was wrong.  This is really a frustrating summer doldrums type atmosphere and has been for weeks.  Eventually we will break out of it but I certainly don't know when.  Perhaps when all the players return after Labor day.  But the market will go and do what it wants regardless.  We'll get some economic data out next week but not a lot.  We're also moving into the September option cycle and premiums will be high.  So from here it looks like sitting things out will be the prudent course of action.  Or inaction.  Europe and Asia were lower overnight but the NIKK had a slight gain.  I'll be going over the charts this weekend as usual.  For now it's Friday afternoon and time for a rest. 

More of the summer doldrums as the Dow gained 23 points on light volume.  The advance/declines were over 2 to 1 positive.  This should move the summation index back to sideways.  The overall market was stronger than the Dow again.  I'm thinking we'll see new all time highs in the next couple of days.  The short term technical indicators remain overbought for the major stock indices.  Option expiration tomorrow.  The grind higher continues.  GE was up a few cents and the volume remains light.  Gold was up $8 as the US dollar was lower yet again.  The XAU rose 1 1/2, while GDX gained 1/3.  Volume was very light.  Gold has not risen as much as you would expect given the solid drop in the dollar.  That isn't a good sign for the gold bulls.  But we'll have to see how it plays out in the days to come.  Mentally I'm feeling OK.  The action in the TRAN today says higher prices are coming.  That's my interpretation of things here.  Perhaps a run up to 2200 on the S&P 500 and then we'll assess where to go after that.  I'm still thinking that perhaps waiting for August to get over with could be the best course of action.  I'm still waiting for some type of signal or divergence to initiate the next trade.  You can't force things.  But I am considering the SPY September puts and will keep an eye out that way.  Europe and Asia were higher overnight with the exception of the NIKK again.  We'll see how the expiration goes tomorrow.

We had a one day reversal to the upside today as the Dow opened lower and closed higher.  The most watched index gained 21 points on light volume.  the advance/declines were slightly positive.  The summation index is still heading lower.  The Fed minutes were really neither bullish or bearish but the market did rise after the release.  Although the short term technical indicators did roll over, they now appear to be on the way back up.  Had we closed near the lows on the session it would be another story.  Today the NASDAQ under performed and that will be something to keep an eye on.  We have not seen that in a while.  I think we'll grind higher near term into the expiration.  I'll be keeping an eye on the SPY September puts but maybe we should just let the month of August pass.  GE was up a dime and the volume was very light.  Gold was off a few bucks on the futures as the US dollar finished flat.  The XAU lost 1 2/3, while GDX shed 3/8.  Volume was a bit above average.  Mentally I'm feeling OK.  Just a couple of days left for the August option cycle.  It has the feel of a run up into the close on Friday.  That's my guess at the moment.  Still a pretty quiet summertime atmosphere though.  The grind higher makes for tough trading as the time premium is constantly working against you.  That is usually the case but becomes more exaggerated with slow markets.  The volatility that did pick up early today quickly dissipated and we closed near the low there.  Expect higher prices near term.  Asia was mixed and Europe lower in overnight trading.  We'll keep an eye on the overnight developments.

We got some selling today as the Dow fell 84 points on light volume.  The advance/declines were 2 to 1 negative.  The summation index tried to head back up but it has turned around again.  We closed on the low of the day and that's bearish.  No positive option expiration bias yet.  The short term technical indicators for the S&P 500 have rolled over.  Could this be the beginning of a meaningful decline?  Perhaps, but I doubt it.  There aren't any negative divergences that I can see on the daily charts yet.  The sentiment has gotten more bullish here lately though.  I'm going to keep an eye on the SPY September puts.  GE was off a nickel and the volume was light.  We finally closed below the 50 day moving average here.  Gold was up a few bucks and the US dollar had a pretty good drop.  The XAU and GDX both had slight fractional losses on very light volume despite the drop in the dollar.  That is not bullish price action for the gold shares.  I'm not sure what to make of it.  Mentally I'm feeling OK.  We got a little bump in volatility today.  Could the summer doldrums be coming to an end?  We are entering a period of seasonal weakness for stocks.  However the volume has been so anemic that it is hard to exactly know what is going on.  Major players are still on vacation.  One day doesn't make a trend though and we'll have to see how the market reacts to the Fed minutes tomorrow.  There was general weakness around the globe last night.  Does the market know something that we don't? 

Another day another new all time high as the Dow gained 59 points on light volume.  The advance/declines were about 2 to 1 positive.  The summation index is trying to turn back up.  Still simply the summer doldrums here as we drift through August.  Option expiration week and plenty of economic data due out.  Plus we get the Fed minutes on Wednesday.  So there is potential for market movement but the trend remains a grind higher.  No trades for me until the week is over is the idea for now.  GE was flat on light volume.  Hugging the 50 day moving average here.  Gold was up a few bucks on the futures as the US dollar was a bit lower.  The XAU and GDX had slight fractional losses on very light volume.  Light volume is the theme all the way around.  Mentally I'm feeling OK.  I'm starting to hear a little more bullishness in the press, so I will continue to look at the SPY September puts.  Overbought and staying that way for the major indices.  At this rate it appears that we will reach the 2200 level on the S&P 500 soon.  That is a nice round number that perhaps we'll see some selling.  However unless there is some kind of external shock to the market, higher is the word.  Europe and Asia were higher with the exception of Japan.  Lots of data out tomorrow and then the Fed on Wednesday.    

No follow through for the Dow today as it lost 37 points on very light volume.  The advance/declines were slightly negative.  The summation index is slowly trending lower.  The NASDAQ was positive as the small stocks are still showing good relative strength.  As long as that continues the trend remains up.  It is however, a light volume grind.  Retail sales were flat and that scared the buyers away for a day.  Option expiration week is coming up and I'd expect higher prices with the usual positive bias.  GE was off a nickel on lighter volume.  Gold was off $9 on the futures and the US dollar was a bit lower as well.  The XAU shed 1/2, while GDX was flat.  Volume was light.  Gold fell despite a drop in the dollar and weak economic news.  That isn't bullish.  Mentally I'm feeling OK.  A very slow summer Friday is what we got today.  Could we simply slog ahead like this until Labor day?  I suppose it's possible.  Volatility has collapsed and the triple digit price moves are few and far between.  A tough trading environment.  I've been on the sidelines and will remain there until we get some kind of decent signal.  Overbought and staying there again on the S&P 500 short term technical indicators.  I'm still looking at the SPY September puts at some time in the next option cycle.  But for now it is simply wait and see.  Asia was higher and Europe slightly lower overnight.  I'll be checking the charts over the weekend but that won't change the fact the we are in the severe summer doldrums.  Enjoy the weekend.

Back to the upside today as the Dow gained 117 points on light volume.  The advance/declines were positive.  The summation index is still in a sideways trend but leaning lower.  Just how long we continue this light volume levitation is the question in my mind.  I'm looking at the SPY September puts now.  As always timing is the key and with this slow summer market atmosphere it doesn't get any easier.  It's probably best to let the August expiration pass and then look to make a trade.  That's the idea for now.  GE barely moved but the volume came back to life.  Still holding above the 50 day moving average.  Gold fell $8 on the futures as the US dollar was higher.  The XAU and GDX had slight fractional losses on very light volume.  Mentally I'm feeling OK.  The light volume drift upward continues.  New all time highs for several of the major stock indices.  Not a lot of press about it though.  Until we get some sort of negative divergence on the technical indicators, the best place for me is on the sidelines.  I do not expect some kind of significant upside rally from these levels at the moment.  The environment is summer doldrums levels of inactivity.  I'll look for the small stocks to stop leading the way higher for a clue as to when this thing is about to roll over.  For now patience is still the right choice.  It isn't the best of trading worlds right now, even for the calls.  Some markets in Asia were closed overnight but mostly to the upside.  Europe was higher.  We'll finish up the week tomorrow.   

Lower today as the Dow fell 37 points on light volume.  The advance/declines were negative.  The summation index is heading sideways.  We're still below the zero line on the McClellan oscillator.  The short term technical indicators have rolled over for the S&P 500.  But there is no sense of urgency to what we have going on here.  You could have tried to get some SPY August puts in the past couple of days but the needed volatility just isn't there yet.  The action is more of a meandering stream to nowhere.  It has been a slight drift higher but for most part nothing much.  Better to be writing as opposed to buying.  GE was off a few cents and the volume was extremely light.  Gold was up $5 on the futures as the US dollar was lower again.  The XAU added 1 2/3, while GDX was up 1/2.  Volume remains light.  Mentally I'm feeling OK.  It appears the prudent course of action here will be inaction.  Time is running out for the August option cycle.  Even with the extra week for August there has been only one decent set up so far that I missed.  I would certainly like to try another trade here soon but if things don't line up properly you cannot force it.  After the volatile Augusts that we've had in recent years, so far this one has been rather tame.  It's possible that could change but I don't see it anytime soon.  I could be wrong.  But it seems like the market is on vacation.  Asia and Europe were both generally slightly lower.  We'll see what tomorrow brings.

Another lazy day in the summer as the Dow gained 3 points on light volume.  The advance/declines were positive.  We were up over 50 points during the session but fell back.  The summation index is heading sideways.  We haven't made it back above the zero line for the McClellan oscillator but one good upside day will do it.  There is a potential to stall here as well.  What we do have is a lack of volatility and a tough trading environment.  The small stocks continue to show the good relative strength.  As long as that is the case, I don't see any major move lower.  GE was up 3 cents and the volume was light.  Still holding onto the 50 day moving average here.  Gold was up 5 bucks on the futures as the US dollar was lower.  The XAU and GDX again had slight fractional gains on light volume.  Mentally I'm feeling OK.  We're short term overbought again for the S&P 500 which has been the story for most of the August option cycle thus far.  We are hugging the top of the Bollinger band as well.  A case can be made for the SPY August puts.  However the timing would have to be just about perfect and that is a tough way to go.  Yes, things could roll over here but they could just as easily remain doldrums sideways.  I've been on the sidelines for a while and it appears I'll stay that way.  I will take a closer look at things tonight though.  European markets were higher led by a breakout in the DAX.  Asia was mixed.  I expect we'll continue the slow summertime atmosphere on Wednesday. 

Just another summer Monday in 2016 as the Dow fell 14 points on light volume.  The advance/declines were positive.  The summation index is moving sideways for now.  The summer doldrums in full swing.  We are getting convergence of the Bollinger bands on the S&P 500.  This implies a big move is coming up.  As usual, which way is the question.  I'm looking at the SPY August and September puts again.  However with the slowness and lack of volatility lately, any trade has to be timed to perfection.  Also we're running out of time in the August option cycle with only 9 days left.  GE was off a penny and the volume was light.  Gold was off few bucks on the futures and the US dollar was a bit higher.  The XAU and GDX both had slight fractional gains on light volume.  Mentally I'm feeling OK.  A check of the charts over the weekend still shows a short term overbought condition for the S&P 500.  We did break out on Friday to the upside but there was no follow through today.  The McClellan Oscillator is trying to get back above the zero line.  If we can't get above that, there may be a chance that we will roll over and the SPY put trade will work.  However there is also an old wall street saying, never sell short a dull market.  This is about the dullest market that we've seen in quite a while.  I'm still leaning towards the put side though.  The NIKK had a strong session overnight.  The rest of Asia and Europe was slightly higher.  Not a lot of economic data due until Friday when we get inflation and retail sales numbers.  We'll keep an eye on the overnight developments.   

A better jobs report helped for a better stock market as the Dow soared 191 points on light volume.  The advance/declines were better than 2 to 1 positive.  The S&P 500 closed at a new all time high.  It also closed on its high which bodes well for the open on Monday.  The summation index is trying to turn back around to the upside.  Higher prices expected here in the short term and I simply missed this trade.  Perhaps I should have just purchased the SPY August calls yesterday at the price they were offered but retrospect is always correct.  It's where we go from here that counts.  Perhaps a drift higher here will set up a SPY put trade before the August expiration.  GE was up 1/8 and the volume was light.  Still above the 50 day moving average.  Gold fell on the better employment report.  The precious metal futures lost $25 as the US dollar gained as well.  The XAU dropped 3 1/4, while GDX shed a point.  Volume was good.  There's a potential double top here in gold that measures down to the $1250 level.  A solid break of $1310 would be the trigger.  Mentally I'm feeling OK.  There's still 2 weeks to go in the August option cycle.  If we do get to a short term overbought condition next week, I may try the SPY August puts.  However the risk increases with each passing day.  We also cannot discount the possibility that we simply return to the quiet summer doldrums again next week because this market lately has been pretty low volume.  Add that to the lack of volatility and you can see how trying to trade here is tough.  Having just missed this SPY call set up doesn't do much for the confidence factor either.  But on we go as the market game continues.  Probably remaining patient until a decent set up will be the rule as it should be.  Europe and Asia were higher for the most part overnight.  I'll be checking the chart over the weekend as usual.  It's a summer Friday afternoon and time for a break.

Another lackluster session as the Dow lost a couple points on light volume.  The advance/declines were positive.  The summation index continues lower.  I placed another order for the SPY August calls but it wasn't filled.  Perhaps if we get early weakness tomorrow I'll try again.  I do think that we're heading higher tomorrow.  The summer doldrums are in full effect and that makes for tougher than usual speculation.  Perhaps simply taking off the rest of the summer is the answer.  We should get some movement out of the jobs number but will it be enough to make attempting a trade worthwhile?  GE was up a few cents and the volume was light.  Gold was up a couple bucks on the futures and the US dollar was a bit higher as well.  If gold can get above $1375, it has room to run.  The XAU and GDX had fractional gains on the day.  Volume was light.  Mentally I'm feeling OK.  It seems like the market is just sleepwalking this summer as we've been range bound for weeks.  August is generally a poor month for stocks so we will have to see where we go from here.  I'm expecting some upside tomorrow but after that, who knows?  Lack of volume and lack of volatility is not conducive to good trading opportunities.  I've been quite patient for a while and that has not been a bad thing.  I'll continue to wait for a decent technical set up before pulling the next trade.  I do think that we have one here for the very short term but my price objective for taking the risk was not met.  Europe and Asia were higher overnight but the US did not follow through.  We'll watch the markets reaction to the employment numbers tomorrow.

The Dow broke its losing streak today with a gain of 41 points on light volume.  The advance/declines were 2 to 1 positive.  The summation index is heading lower.  I do think that any weakness tomorrow could be bought for a short term trade.  I did place an overnight order for the SPY August calls but it wasn't filled.  It already may be too late for this trade as well since we have already moved higher off of the recent low.  So we'll see.  There is also a potential trade for the SPY August puts if we do move higher near term.  Today seemed like it was back to summer doldrums.  GE was up a few cents on very light volume.  Holding the 50 day moving average.  Gold was off $8 on the futures as the US dollar was higher.  The XAU was lower by 7/8 and GDX fell 1/3.  Volume was light.  Mentally I'm feeling OK.  There's a potential for a trade here but things will have to line up just right tomorrow.  The ideal scenario would be for some type of decline in order to purchase the SPY August calls.  I then anticipate higher prices on Friday regardless of the employment report.  That is what the technical set up looks to me right now.  One of the problems here though is that the lack of price movement and volatility is making the option premiums muted.  What I mean by that is that the price movement isn't doing much for the price of the SPY options.  That lowers the potential for profit either way.  However the risk of the trade and the time decay on the options continues regardless.  However if things do work out to the downside tomorrow, I'll probably attempt this trade.  Europe and Asia were both generally lower overnight.  We'll follow the market action tonight and see if we can put on the SPY August call trade tomorrow.   

A bit of volatility today as the Dow fell 90 points on light volume.  The advance/declines were 3 to 1 negative.  The summation index is now heading lower.  Could this be the beginning of a decline worth trading?  Perhaps.  But I will say that there will be a chance this week for a short term SPY call trade if you are nimble enough.  If we get a retest of todays lows before Friday, that would be the spot to get the SPY calls.  Hasn't happened yet.  However there is also a chance that we return to the summer doldrums and that would not be the conditions that we want for trading.  GE was off a dime and the volume was light.  Still above the 50 day moving average though.  Gold gained $11 on the futures as the US dollar was lower.  The XAU rose 1 1/4 and GDX added 1/3.  Volume was average.  Mentally I'm feeling OK.  The Dow has been down 7 days in a row.  This will not last forever.  The relative strength of the small stocks also tells me that any drop here should be shallow.  I do think that if I get a chance in the next couple of days for the SPY call trade I'll try it.  It would strictly be a short term trade not to go past Monday.  If we get some weakness back towards the 2150 area on the S&P 500, that would be the time to look for the SPY August calls.  Once we get some upside, then we could look for the other side and perhaps try the SPY puts.  But you have to be quick and you have to pay attention.  I'm not exactly sure that I'm up to the task but we'll see how the market progresses from here.  The short term technical indicators for the S&P have rolled over.  We are still solidly above the 50 day moving average here.  Europe and Asia were lower overnight.  I would have thought that the market would be on hold until Fridays employment report but today changes that scenario perhaps.  We'll see what tomorrow brings. 

Another mixed bag to begin the month of August as the Dow fell 27 points on light volume.  The advance/declines were negative.  The summation index continues sideways.  The NASDAQ moved higher as the small stocks continue to outperform.  The summer doldrums are in full swing.  The short term technical indicators for the big caps are trying to roll over.  Not much else to report today.  waiting on Fridays jobs report.  GE was flat and the volume was lighter.  Oversold on the indicators here.  Gold was up a couple bucks on the futures today and the US dollar was a bit higher.  The XAU added 1 1/3, while GDX rose 1/3.  Volume was good.  We are now in the positive seasonal time period for gold.  However we are already back to overbought on the short term techncials.  Mentally I'm feeling OK.  August hasn't been a good month for stocks lately.  We'll see how that unfolds this year.  There's still plenty of time to make a trade in the August option cycle.  I'm still looking at the SPY puts here at some point.  With the low volatility, I'm going to have to wait for some type of rise in prices before attempting to go short.  We'll see.  Asia was higher and Europe lower overnight.  We'll keep an eye on the overnight developments.