The beat goes on as the Dow climbed in the final half hour to finish the day with a gain of 23 points on light volume.  The advance/declines were positive.  The summation index is heading higher.  The overall market was much stronger than the Dow and that's a positive.  I once again sold my SPY October puts for a loss and rolled into a higher strike price.  The loss today was 22%.  My new position in the SPY puts is showing a slight loss.  Overbought and staying that way for the major averages.  Perhaps my thinking is just wrong here and the market may be trying to tell me that.  Or maybe I'm just married to this idea and won't let it go.  My trading tactics and management are OK but it doesn't matter if the underlying premise is wrong.  I'm going to have to look things over again this weekend and decide if just sitting out from here is the way to go.  Small losses do add up.  GE was off a few cents on average volume.  Gold fell $6 on the futures.  The US dollar finished little changed.  The XAU fell a point and GDX lost twenty cents.  Volume was pretty light here.  Mentally I'm feeling OK.  I've done more trading this week than I usually do in a month.  Perhaps I'm losing my patience.  The weak seasonal period hasn't produced any legitimate decline.  My thinking is that we may simply keep heading higher from here and squeeze the shorts some more.  That would not help my cause.  I think that if this current SPY put position gets stopped out that I'll simply step aside.  A lot of what I look at is flashing sell signs but the market refuses to drop.  With no overhead resistance this could be the speculative blow off top that we are seeing form now.  That's a guess as usual.  But you cannot deny that overbought seems to mean nothing here.  I'll just have to look at things over the weekend and hope some rational thought enters my mind.  Perhaps my ears are deaf to listening to what the market is saying here.  We'll see.  Europe and Asia were generally higher overnight.  It's Friday afternoon and time for a rest. 

The market is in a drift as the Dow gained 40 points on light volume.  The advance/declines were positive.  The summation index continues higher.  Not much to trade off of here lately as there have been no economic surprises one way or the other.  I did finally get stopped out of my SPY October put trade today for a 30% loss.  I also did roll into a higher strike price and my order was filled at the end of the day.  Although I don't know about the wisdom of this trade.  We are short term overbought on the technical indicators for the S&P 500 but I do think that there could be a bit more room to the upside.  The market break that I've been expecting in this option cycle just isn't happening.  GE was off 1/8 on average volume.  I'm still keeping an eye on things here.  Gold was up a couple bucks on the futures as the US dollar was lower.  The XAU rose 7/8 and GDX added a little over 1/8.  Volume was pretty light though suggesting that there isn't any interest here for now.  Mentally I'm feeling OK.  The loss on the SPY today was easier to digest than others.  I stuck to the plan and the trade just did not work out.  There was a brief chance for a small profit at one point.  I'm not sure if rolling into basically the same position is the right idea but I'm still worth giving it another try.  The market will go where it wants to though.  There's a chance that we'll be on hold until the jobs report in a week.  If that's the case I'll probably be stopped out again.  The Dow was stronger than the overall market today but the strength in RUT is definitely a positive.  Perhaps I'm just barking up the wrong tree here.  We could see a short covering rise from here too.  Europe and Asia were mostly up overnight.  We'll watch the overnight action and close out the week, month and quarter tomorrow.

Higher today as the Dow rose 56 points on average volume.  The advance/declines were positive.  The summation index is still moving up.  The overall market was stronger than the Dow but I don't know if this qualifies for the move expected from the McClellan oscillator signal.  My SPY October puts were almost stopped out today.  Another positive session like today and they will be.  The RUT soared today and that is a plus for the bulls.  It looks like a valid breakout there.  Perhaps my thinking is wrong here again.  The short term technical indicators for the small stocks have turned back up.  Perhaps we'll see a short squeeze tomorrow.  GE was off a bit over 1/2 on heavy volume.  Perhaps I'll get another shot at the longer term calls there.  Gold dropped $15 on the futures as the US dollar continues to rise.  Rates have started to rise and that is not a plus for gold.  The XAU shed 1 1/8, while GDX lost 1/3.  Volume was average.  Mentally I'm still feeling tired due to not sleeping well lately.  Perhaps this is the beginning of the speculative blow off top.  That's a guess as usual and I have nothing to back it up except the breakout in RUT.  The VIX has come back down and what is usually a weak seasonal time period hasn't produced the decline as expected.  There is still a lot of time left in the October option cycle but the way things are going it feels more like a breakout is about to occur rather than a breakdown.  I'm still considering moving to a different strike price if I do get stopped out tomorrow.  We'll probably see end of the month and quarter market moves in the next two days as well.  I'll consider what action to take for tomorrow as I watch the overnight SPX futures.  Asia was mixed and Europe higher in last nights trade.  We'll see what tomorrow brings.

We tried and failed to rally a couple times today and the Dow finished off by 11 points on light volume.  The advance/declines were positive.  The summation index continues higher.  The overall market was stronger than the Dow but not by much.  My theory of higher prices in the beginning of the week didn't happen.  But we are due for some kind of bounce in my opinion.  The McClellan oscillator gave a signal yesterday for a decent move within the next 2 days.  That means if the signal is valid it will be tomorrow.  The short term technical indicators are trying to curl back up.  My SPY October puts are about where I bought them.  GE was off about 20 cents on OK volume.  Gold dropped almost $15 on the futures as the US dollar was higher.  The XAU shed 1 1/2, while GDX lost 1/2 on average volume.  Mentally I'm feeling a bit tired, did not sleep enough.  The market is trying to figure out what to do here.  I'm sold on the idea that we're going to roll over here.  However the RUT just broke through its resistance and closed above 1450.  It has led the way many times in this bull market.  The other small stock indices have rolled over though.  But the TRAN is strong here as well.  So it really is a mixed picture and you can make a case for both ways.  We are in a seasonally weak period but haven't seen any meaningful decline.  We have yet to even see a 5% correction this year in the Dow.  There's plenty of time in the October option cycle and I plan on holding this trade until it gets stopped out or I take the profit.  Europe and Asia were mixed last night with minor moves.  We'll see if we get the big move implied by the oscillator signal on Wednesday. 

Lower today as the Dow fell 53 points on light volume.  The advance/declines were positive.  The summation index is heading up.  I still expect some strength early this week and probably tomorrow will be the start.  The market did try to sell off the morning but we got a little near term oversold.  My October SPY puts are right where I bought them despite the recent lower prices.  As I've said, if the trade gets stopped out I will simply try it again.  The daily candlestick chart for the S&P 500 looks like a hammer, which implies higher prices coming tomorrow.  the short term technical indicators have rolled over but not decidedly so.  GE was up 1/4 on good volume and is now bucking the trend and showing good relative strength.  Perhaps the ideal time for the January calls here has passed by.  I'm still keeping an eye on it.  Gold rose $16 on the futures today despite a rise in the US dollar.  More geo-political tension over the weekend and a lower market are probably the cause.  The XAU added 1 1/3, while GDX was up 1/3.  Volume was average.  Mentally I'm feeling a little tired.  The Dow was off over 125 or so early in the session but made a decent comeback.  We should go higher in the near term is my view.  Perhaps after a small rally we'll begin to see the downside that I'm actually looking for.  There was a chance today to sell my position with a small profit but I'm preferring to wait.  There will be some economic data out this week but nothing major unless there is a big surprise in the numbers.  We'll get the end of the month as well.  Asia was mixed and Europe mostly lower overnight.  We'll keep an eye on what develops tonight.      

More hanging around today as the Dow fell 9 points on pretty light volume.  The advance/declines were almost 2 to 1 positive.  The summation index continues higher.  The overall market was stronger than the Dow and that's a plus for the bulls.  The RUT is right at the resistance of 1450.  I'm thinking that we'll get some strength early next week which would produce some kind of short squeeze higher.  Unfortunately I'd be getting squeezed this time around since I'm holding the SPY October puts.  They are still showing a small loss.  Once again, if I do get stopped out I'll try this trade again.  GE was up 1/8 and the volume was good.  Gold was up five bucks on the futures and the US dollar was little changed.  The XAU rose a point and GDX added 1/4.  Volume was light.  Short term oversold on the technical indicators for gold and the gold shares.  Mentally I'm feeling OK.  Still 4 weeks to go in the October option cycle with plenty of time.  I do think that there's a chance of another run up in the near term.  However I'm also just as convinced that we'll see some type of drop during this option cycle.  The potential RSI negative divergence is still there on the S&P weekly chart.  Plus the volume here lately has been very weak and that is never a positive for higher prices.  But like I said, that doesn't rule out another bounce higher to run in the shorts.  However we've got the VIX below 10 and that won't last the entire time left in the October option cycle either.  My strategy is already in place and I'll be ready to adjust if necessary.  I'll reassess after looking over the details on the charts this weekend.  Asia was generally lower and Europe higher last night.  It's the first day of autumn and the end of the week.  Time for a break.

A bit lower today as the Dow fell 53 points on pretty light volume.  The advance/declines were negative.  The summation index is still moving higher.  We bounced around for much of the session in lower territory and extended the losses in the final half hour.  I don't think that this is the start of a big decline because I am looking for some strength at the beginning of next week.  My SPY October puts are still showing a slight loss.  I'm not exactly sure what to do with this position but will probably hold it over the weekend.  We're still short term overbought on the big cap indices.  The smaller stock indicators have already rolled over.  GE is moving up and gained 3/8 on good volume.  We've broken a short term down trend line that's been in effect since June.  I'll be looking for the longer term calls on a drop back to the recent low.  Gold sunk over $20 on the futures and has dropped below $1300.  It appears that gold reacted to the Fed today.  The US dollar was a bit lower.  The XAU and GDX had fractional losses on light volume.  Mentally I'm feeling OK.  So we dropped a little today but it hasn't helped my SPY put options.  That is the effect of the time decay which makes options trading a challenge.  I'm still convinced that we'll see some type of decline in the October option cycle at some point.  Again, if this position gets stopped out, I'll try it again.  Perhaps in the middle of next week.  RUT has yet to break through the resistance at 1450.  Asia was generally lower and Europe higher but not by much.  A really lackluster response to the Fed.  We'll close out the week tomorrow.   

We attempted a sell off today but the market refused to go down as the Dow gained 41 points on average volume.  The advance/declines were positive.  The summation index is moving up.  The Dow dropped to down around 50 points after the Fed but then came all the way back.  I think we could go a bit higher near term but really are overdue for some decline.  My SPY October puts are showing a small loss.  If this trade gets stopped out, I will simply try it again at a higher strike price.  My work suggests some strength at the beginning of next week.  Perhaps trying the puts again then will be the next idea depending on what happens the rest of this week.  I do feel that at some point the SPY October puts will be where you want to be.  GE was up 1/8 on good volume.  I will be trying the longer term calls here at some point.  Gold was off $6 on a stronger US dollar after the Fed.  The XAU dropped 1 3/4, while GDX shed 1/3.  Volume was good.  Mentally I'm feeling OK.  I'm not sure what the next catalyst for market movement will be from here.  Still overbought and staying that way.  Perhaps we'll see the speculative blow off top.  But that's just a guess.  The TRAN had a good day and RUT is about to make a new all time high.  If the small stocks get going here and break to new highs as well it will be rally mode all around.  It will be interesting to see if RUT climbs above 1450.  That's the level to watch in my mind for now.  Otherwise it appears that I'm early on the SPY October puts here.  We did not get the sustained sell off from the Fed that I had anticipated.  Managing the trade from here is the task at hand.  Perhaps I'll bail out before the weekend and look to reestablish the position next week.  It's something to consider.  Asia was higher and Europe mixed in last nights trade.  We'll see how the market digests the Fed overnight.       

Another day of waiting on the Fed as the Dow rose 39 points on light volume.  The advance/declines were slightly positive.  The summation index continues to head higher.  The McClellan oscillator gave a signal last night for a big move in the next two trading sessions.  If the signal is valid we'll see some movement one way or the other tomorrow.  We remain short term overbought for all the major stock indices.  I still think tomorrow could go either way despite the overbought condition.  However I did purchase some SPY October puts today.  My original open order wasn't filled so I canceled it and went with a closer strike price and less money at risk.  The stop loss order is in.  If we do rally from here, I will try this idea again in a few days.  GE dropped 1/4 on good volume.  Trying to find a bottom here?  Who knows?  Gold rose a few bucks and the US dollar was a bit weaker.  The XAU and GDX had slight fractional gains on very light volume.  Mentally I'm feeling a bit tired, did not sleep enough.  So the next trade is in.  Plenty of time for this to work but tomorrow will probably tell the story if there will be a profit or not.  There is really nothing out there that says we're on the verge of a huge decline.  However we are overbought, have been and are overdue for at least some downside in the near term.  That's my story and I'm sticking to it for now.  It could all change tomorrow.  I will say that there are potential negative RSI divergences on the weekly chart for the S&P along with some other big cap stock averages.  So we'll see.  Europe was higher and Asia mixed overnight.  We'll watch what happens tonight and check out the markets reaction to the Fed tomorrow. 

More new highs as the Dow gained 63 points on light volume.  The advance/declines were positive.  The summation index continues higher.  The market may be on hold until we get the Fed announcement on Wednesday.  We're still short term overbought and staying that way.  Things technically could go either way after the Fed despite the short term overbought status.  I did place an open order for the SPY October puts this morning but it wasn't filled.  I've left it in overnight but may change my mind by the open tomorrow.  There's a chance that the small caps could break to the upside here and then we'd be off to the races.  There's no overhead resistance once we get above where we are now on the small caps.  It's either that or we have some kind of double top put in.  The overall market was weaker than the Dow today.  GE was up 1/2 on good volume.  If GE can finally get something going to the upside, that would paint a bullish picture as well.  Gold fell $14 on the futures and the US dollar was a bit higher.  The XAU lost 1 1/2, while GDX shed 3/8.  Volume was about average.  Gold seems to have lost some of its luster as rates in the US have ticked higher.  Mentally I'm feeling OK.  I suppose that I'm convinced that the weak seasonal pattern for the stock market is about to show up here.  That combined with the overbought condition of the market at the moment are two reasons to look at the puts here.  The light volume is another.  My hope is that we'll see one more attempt at new all time highs.  That would be the ideal time to try the SPY puts in my mind.  But we know the market rarely cooperates and there's the possibility that we have some kind of blow off top first as well.  As with any trade, there's always some risk.  However getting short in here at the moment seems to present less risk than getting long.  We'll have to see how things go tomorrow.  Europe and Asia were higher overnight.  We'll keep an eye on the overnight developments.

The beat goes on as the Dow added 64 points on expiration heavy volume.  The advance/declines were decidedly positive.  The summation index continues higher.  Some indices are breaking out to new all time highs and the small stocks look to be on the verge of doing so.  The short term technical indicators remain overbought.  It appears as though there isn't anything in the way of higher prices.  I'm still looking at the SPY October puts but I don't want to be married to this idea.  We are in a seasonally weak time period but that hasn't meant anything yet.  GE lost about a dime on heavy volume.  Gold shed $5 despite another threat from North Korea.  The US dollar was a bit lower.  The XAU and GDX had fractional losses on light volume.  Getting short term oversold for the gold shares.  Mentally I'm feeling OK.  I guess how high will we go here is the question.  An extra week on the October options, so the premiums are pricey.  It would be hard for me to go long here because we're already very short term overbought and have stayed that way.  However there could be another short squeeze on the way and I would not like to be stuck in that.  We've got the Fed next week and it may be tough to take a position ahead of that as well.  I'm going to have to reassess my ideas at the moment and try to come up with a viable game plan.  There is really no way to tell how much longer the market will climb but it certainly won't last forever.  Todays positive action could also just have been expiration related as well.  I'll have plenty to think about over the next couple of days.  I'll go over all the charts and try to figure out what to do.  Asia up and Europe down in last nights trade.  It's Friday afternoon nearing the end of summer and time for a break.

A mixed bag today with the Dow higher and the overall market lower.  The most watched index rose 45 points on average volume.  the advance/declines were slightly positive.  The summation index continues higher.  The S&P along with the NASDAQ were lower, with the small stocks getting the worst of it.  This underlying weakness could spell trouble going forward and I am kind of counting on it.  The short term technical indicators remain overbought for the major averages.  We'll s get retail sales tomorrow and we'll see how the market reacts.  GE was up fifteen cents on good volume.  Gold rose five bucks on a lower US dollar.  The XAU and GDX had slight fractional gains on about average volume.  Mentally I'm feeling OK.  Not much else to report today.  I'm letting this week go by and then hopefully getting some SPY October puts next week.  We've got option expiration tomorrow and the Fed coming up next week.  I'm not expecting nay surprises from the Fed but you never know.  We remain overbought with the small stocks kind of stalling here.  The VIX is oversold at the moment and it appears to me that we are at least trying to set up for something lower in the near term.  But I could be wrong and often am.  What I would like to see is a light volume levitation from here going into the close on Monday.  The market rarely cooperates.  Europe and Asia were generally lower overnight.  We'll see how we close out the week with the expiration tomorrow.  

Another day of hanging around as the Dow gained 39 points on light volume.  The advance/declines were slightly positive.  The summation index is heading higher.  We hung around for most of the day and got a slight pop in the final half hour.  No overhead resistance and the expiration week positive bias remains in effect.  I'm going to let this week pass and then try the SPY October puts early next week if the market cooperates.  GE rose 20 cents on good volume.  Gold dipped another $5 on the futures as the US dollar was higher.  Has the dollar put in some kind of bottom here?  Time will tell on that.  The XAU dropped 1 3/4, while GDX shed almost 1/2.  Volume was light.  Gold is at the uptrend line that started in the beginning of July so we're at a short term moment of truth.  The short term technical indicators here have rolled over.  Mentally I'm feeling a bit tired, did not sleep well.  Not much new to report.  The major stock indices are still short term overbought and staying that way.  What I would like to see is a negative RSI divergence for the S&P that would set up the put trade.  But something like that would take time to develop and it is no sure thing that it would happen at all.  I will wait until next week to try something as the October options have an extra week in them anyway.  Premiums are high.  Plus as I already said before, we could get a speculative upside blow off.  That would be hard to try and trade.  Asia was mixed and Europe higher overnight.  We'll see what tomorrow brings.

We got some follow through today as the Dow gained 61 points on light volume.  The advance/declines were positive.  The summation index is heading up.  There doesn't appear to be anything in the way of higher prices.  No overhead resistance for the S&P and the small stocks are on the cusp of breaking out as well.  The Dow is just about ready to set a new all time high as well.  The positive expiration week bias is in effect.  I'm going to try and be patient on getting some SPY October puts.  I think that the beginning of next week would be the ideal time scenario.  GE was up almost 20 cents on good volume.  Is this the bottom for GE?  We've asked that numerous times in the past three months.  The gold futures and the US dollar finished flat on the session.  The XAU and GDX had slight fractional gains on light volume.  Mentally I'm feeling OK.  It looks like all systems are go for even higher prices going forward.  Unless we get a shock out of the blue, the path of least resistance is up.  The shorts have been squeezed and they might get that treatment again this week.  Inflation  data coming up and then retail sales on Friday.  The volume has been light in the past two sessions so I'm not deterred on my idea of the October puts.  I do however not want to be early on this trade.  I think we could get strength going into the end of the week so I'm holding off on doing anything until early next week.  I could be wrong but I do not see any imminent decline for stocks here.  Europe and Asia were higher overnight as well.  We'll keep an eye on the evening trading action.   

A blast to the upside to start the week as the Dow exploded for a gain of 259 points on light volume.  The advance/declines were almost 4 to 1 positive.  The summation index is moving higher.  North Korea has now cooled down and we rallied despite a devastating hurricane hitting Florida.  Short term overbought and staying that way.  The shorts got squeezed today and that was something that I was hoping for.  We hit new all time highs today for the SPY and it looks like there's more to come this week.  This is the potential set up for the SPY October puts in my mind.  I may purchase them at the end of the week.  GE did not participate in the rally and lost a dime on good volume.  If a huge rally in the overall market can't get this stock going, I don't know what will.  Gold dropped today and the US dollar gained.  The gold futures fell twenty bucks for its biggest one day drop in a while.  The XAU shed two points, while GDX lost 2/3.  Volume was good.  Mentally I'm feeling OK.  It looks like we are in a break out rally now as we'll see how many of the major indices follow the SPY to new highs.  I'm thinking that the positive expiration bias will remain in effect through Friday.  We may need to digest todays gains first before moving forward.  I'm still a believer in the SPY October puts and view this as run up before we see some legitimate downside.  I could be wrong.  We are however in a weak seasonal period.  The only thing that would change my mind here is if the RUT went to a new all time high.  It is lagging here and since it's usually the forerunner it's something to keep an eye on.  However I don't want to be married to the SPY October put idea because there's always the chance that this could be the speculative market upside blow off.  If that is the case we'll see a lot higher prices before a drop.  The game is never easy.  The overseas market saw good rallies overnight.  We'll see if the global rise has follow through tomorrow. 

We closed out the week with a whimper as the Dow added 13 points on lighter than average volume.  The advance/declines were slightly negative.  The overall market was weaker than the Dow.  The summation index is still moving up.  It looks like things are setting up to move higher in the near term according to one of the indicators that I look at.  We do have expiration week and its usual positive bias coming up.  I don' think that I'll be trying a short term trade next week but if the signal does show up I just might.  But I am still medium term bearish and do consider the SPY October puts as a better trade going forward.  GE was off another 20 cents on good volume.  I'd really like to get the January calls here but if the market does drop in the next few weeks it will most likely take GE with it.  Gold finished flat on the session and the US dollar was slightly lower.  The XAU dropped around 1 1/2, while GDX lost 1/4.  Volume was light.  Mentally I'm feeling OK.  We've got another hurricane to deal with over the weekend along with whatever happens with North Korea celebrating an anniversary.  Not much economic data early next week so it's hard to see what the market will take its cues from.  I might see a buy signal from one of my indicators but the majority of the short term technical readings are still overbought.  So it isn't exactly a clear picture going forward.  I'll probably err on the side of caution but that may change after going over everything again this weekend.  Nobody is looking for a move to new all time highs but there's a chance that could happen as well.  The market has been known to stay short term overbought for an extended time.  Plenty to ponder in the coming days.  Asia was lower with the exception of the Hang Seng, while Europe was basically flat in last nights trade.  It's Friday afternoon and time for a rest.

Not much on the market front today as the Dow lost 22 points on light volume.  The advance/declines were barely positive.  The summation index is still moving higher.  Pretty much running in place today but we did see some buying near the close.  I think that I'll let tomorrow pass and then look to get the October SPY puts sometime next week if there is a legitimate signal.  Still short term overbought for most of the major indices.  We've got option expiration week coming up.  GE broke to fresh new lows and shed 7/8 on heavy volume.  I guess somebody at JP Morgan doesn't like the stock.  I'm still favoring the January calls here if I can buy them at the right time.  Gold found a bid as the US dollar dropped.  The precious metal futures rose almost $15.  The XAU was up almost two points, while GDX added over 1/2.  Volume was average.  Now there was a missed trade in the gold share calls that I truly regret.  However the markets don't care about what you missed or what you made.  You've just got to keep going on in this game.  Mentally I'm feeling a bit tired again, did not sleep enough.  I thought that retail sales would be out tomorrow but it's actually next Friday.  We are kind of in a data void for a few days until inflation numbers in the middle of next week.  I don't see anybody stepping up to the plate to do any major buying ahead of the weekend but I could be wrong.  I suppose I'd like to see a short squeeze to raise prices higher and give me a chance to buy the October puts.  But that is just wishful thinking.  We're still at the mercy of the next headline out of North Korea.  Or Washington.  For now I'll be patient and wait for the weekend.  Asia was mixed and Europe higher overnight.  We'll close out the week tomorrow. 

A bounce back today but we did sell off in the final half hour.  The Dow gained 54 points on a bit less than average volume.  The advance/declines were positive.  The summation index is still moving higher.  No follow through yet to yesterdays decline.  The short term indicators are still in the overbought zone.  I'm still of the thought that we will be heading lower over time.  It is just a matter of where to try the SPY puts for me at this point.  Heading to the October option cycle is what I'm considering.  However there is an extra week in that option cycle and the premiums are high.  I don't anticipate any more trades for the September cycle.  GE was up 16 cents on heavy volume.  Gold was off five bucks today as the US dollar was little changed.  The XAU lost a buck, while GDX shed 1/3.  Volume was average.  Mentally I'm feeling a bit tired, did not sleep well.  So where do we go from here?  We've got retail sales data due out on Friday and that could be a market mover.  We are still at the mercy of headline risk.  There is an event in North Korea over the weekend that could produce more fear.  So I doubt that there will be a lot of buying ahead of that.  We won't even consider the next headline out of Washington for now.  Technically we're more overbought than anything else at the moment.  So some more decline isn't out of the question.  I suppose that I'm hoping for sideways action into the expiration and then we'll take it from there.  But the market always goes where it wants and rarely cooperates with my ideas lately.  Asia was lower and Europe mixed overnight.  We'll keep an eye out on the developments tonight.    

We finally got a sell off today as the Dow fell 234 points on average volume.  The advance/declines were slightly better than 2 to 1 negative.  The summation index is still heading up but another day like today could change that.  The overall market didn't drop as much as the Dow and that's a plus.  More tension over the weekend about North Korea as the geo-political issues surface again for the market.  Well the puts I sold for a loss on Friday would have been profitable today.  However placing the stop loss order was the prudent thing to do and I'll be doing it again from now on.  I will not chase the market lower here but I will be looking at the SPY October puts going forward.  GE was off over 1/3 and the volume was good.  I'm still looking at the January calls here.  Gold was up $5 on the futures as the US dollar was a bit lower.  The XAU added around 1 3/4, while GDX gained 1/2.  Volume was average.  Money continues to be coming into gold and gold related assets but we are short term overbought here.  Mentally I'm feeling OK.  A rough beginning to a shortened trading week as traders return from summer vacation.  The rally up into Friday did have light volume so it isn't a surprise that we are backing off.  Whether or not this is the beginning of something real remains to be seen.  We're at the mercy of headline risk again and that isn't an easy kind of market to trade.  I'll simply wait for the next technical signal and take it from there.  Right now the short term indicators have turned down but there is no clear signal one way or the other.  We did get a spike in volatility today but have come off of the highs there for the day.  One day doesn't make a trend so we'll see where we go from here.  I'm of the belief that we are way overdue for some kind of sell off but the timing of such an event remains uncertain.  Again, I'll wait for a decent signal and hopefully act accordingly unless events prove other wise.  Asia was mixed and Europe mostly lower  overnight.  We'll see how it goes tomorrow. 

The rally lives on as the Dow rose 39 points on light volume.  The advance/declines were better than 2 to 1 positive.  The summation index is moving higher.  Short term overbought now for the major stock indices.  The employment data was soft but the market moved higher anyway.  That's what I mean when I say the market has the feel of wanting to go higher.  The data doesn't matter even if it isn't positive because it will be viewed as positive regardless.  I got stopped out of the SPY September put trade for a loss of 33%.  I might try this trade again next week, which is what I should have done in the first place.  GE was up over fifty cents on heavy volume.  Finally some buyers have showed up here.  Any pullback from here is the chance to get the longer term calls in my mind.  That could be my next trade as well.  Gold rose $8 on the futures and the US dollar was higher as well.  The XAU and GDX had slight fractional gains on light volume.  Gold and the gold shares have had a nice run for the past couple of months and will be due to take a rest here shortly.  That will be the time to decide whether to try the calls there or not.  I will try not to chase it here.  Mentally I'm feeling OK despite todays trading loss.  That was a mistake that didn't feel right from the start.  The actual trade to make was getting the SPY calls on the open after the North Korean missile launch.  That was a technical set up that I chose to ignore because I was so focused on doing the put trade.  There's a chance the SPY put trade can still work next week.  But there is also the distinct possibility that the market runs up to new all time highs in the September option cycle before we actually see a meaningful decline.  The small stocks are leading the way here and that's bullish.  We'll have to see how things go when all the players return next week.  The volume going higher here hasn't been good.  I'll have a long holiday weekend to figure out my next move.  Europe and Asia were generally higher overnight.  It's a hot Friday summer afternoon and time for a break.