A positive close to 2018 as the Dow gained 265 points on average volume.  The advance/declines were better than 2 to 1 positive.  This should turn the summation index back around to the upside.  The internal components are still weak though for this indicator.  Any advance here will most likely be short lived.  My SPY January calls are still well in the red.  The plan is to sell them on a pop up to start the new year if it occurs.  This will be a losing trade but not losing as much as it once was.  Poor timing on the entry and a trade that really should have never happened.  GE was up a few cents and the volume remains heavy here.  Gold was up a touch as the US dollar was lower.  The XAU added a point, while GDX gained 1/2.  Volume was above average.  There remains interest in the gold shares however GDX is at some major resistance and I don't think that it will break right through.  I could be wrong.  Mentally I'm feeling OK.  Glad to see the 2018 trading year end as I incurred plenty of losses.  It was my worst year ever for losing money.  Nothing I did turned out to be right.  I hung on to losers.  I let winners turn into losers.  My stop losses were hit on a regular basis.  I was not up to the challenge that is trading.  The trade that I'm going to carry over to the new year will be another loser.  But as long as it doesn't turn into a big loss I'll be satisfied that I at least did the right thing.  We'll see.  The VIX continues to fall and that's a plus for the bulls.  But I don't expect any kind of extended rally here.  There is plenty of overhead resistance on all the major stock index charts.  The S&P has a down trend line to contend with and major resistance between 2600-2650.  And we're only at 2500.  I'd expect the market to trend sideways here for a while.  Once we get a short term top here in the next few days we'll have the channel parameters.  The bottom is 2350.  Tomorrow is a holiday and we'll see how it goes on Wednesday.  Asia and Europe were generally higher in the markets that were open.  Happy New Year everybody.

A day of hanging around for a change as the Dow lost 76 points on average volume.  the advance/declines were almost 2 to 1 positive though.  The summation index is still moving lower but is trying to make a stand here and turn around.  The overall market was a bit stronger than the Dow.  My SPY January calls are back to losers.  The VIX was lower today despite the drop and that takes some volatility premium out of the options.  In hindsight I probably should have just dumped this trade today to simply break even.  However I still am of the belief that we'll see a pop on the open January 2nd and that will be the time to exit this ill timed trade.  I could be wrong.  GE was up 1/4 and the volume remains heavy.  Gold was up a bit and the US dollar was down a bit.  The XAU dropped 1 1/8, while GDX shed 1/3.  Volume was average.  Mentally I'm feeling OK.  Quite a volatile holiday trading week but the Dow did come back from the brink.  That low will probably have to be tested at some point.  My hope here is that this short term rally continues at the beginning of next year, which will be Wednesday.  Another short trading week is coming up.  We did just see some extremely oversold readings for the major averages which don't happen very often.  Backing and filling can be expected for a while.  I'm just hoping the filling keeps coming here in the short term.  One thing that is probably for sure though.  We won't just be going straight back up.  We're just getting started on the bear market that has been overdue.  We'll just have to see how long it's going to last.  The short term technical indicators for the S&P are a little below mid-range.  They could roll back over in the near term of they could continue higher.  I'm hoping on the latter.  Traders will come in to finish out the year on Monday, take a day off and then we'll see how the new year starts.  Could go either way.  Europe and Asia were generally higher overnight.  It's Friday afternoon and time for a break. 

It was a one day reversal to the upside as the Dow opened lower and somehow closed higher.  The most watched index gained 260 points on good volume.  The advance/declines were positive.  The summation index is still heading lower.  The Dow was off over 600 points at its lowest today and somehow made it all the way back and then some.  Encouraging price action for the bulls no doubt but it is still a down trend and bear market in my opinion.  The market is taking on a life of its own here, with no news to account for the wild price swings.  My SPY January calls have made it back to break even.  A holiday miracle to be sure.  If we can somehow get the summation index turned around, this trade could actually work.  But that hasn't happened yet and we could be down 100 points tomorrow in this kind of environment.  GE lost 1/8 and the volume remains heavy.  Only two days of tax loss selling left here.  Gold was up around five bucks as the US dollar was lower.  The XAU and GDX had fractional gains on average volume.  Mentally I'm feeling OK.  Quite a turnaround week for stocks so far but we do have to get through Friday.  I don't think that we're about to start a sustained new uptrend here after the pummeling that the market has taken in the past few weeks.  I'm hoping the S&P can stay afloat into the beginning of the year so I can dump my ill timed calls.  But perhaps I should just get rid of them and start the new year fresh.  Always plenty of decisions to make in this game.  I think I'll wait to see how it goes tomorrow and take it from there.  If we can get the summation index turned around my opinion will be that the decline has ended for now.  But it hasn't happened yet.  Asia was higher with the exception of Hong Kong and Europe lower in last nights trade.  We'll close out the holiday week tomorrow.

The long overdue bounce finally arrived today as the Dow soared 1086 points on heavy volume.  The advance/declines were 7 to 1 positive.  The summation index is still moving lower.  It was a massive rally with really no explanation except that we were extremely oversold.  Rallies that spring out of nowhere are classic bear market price action.  I believe that's what we've seen today.  My SPY January calls are still losers but not as much as they were.  Is there still hope for this trade?  Maybe but it will take another 1000 points on the upside in a hurry for it to turn a profit.  After todays price action I would not be surprised if we just hang around or drift lower before January gets going.  GE was up 1/2 and the volume was heavy.  Gold was only off a couple bucks as the US dollar was higher.  The XAU and GDX each lost about 1/2 on good volume.  It may be time for gold to take a rest if the market continues to recover.  Mentally I'm feeling OK.  It's a holiday week usually for the market here but these certainly aren't the usual times.  The Dow rose the most points ever today.  The extreme oversold nature of stocks is what led to todays extreme rally.  The volatility works both ways.  I don't expect another sharp rally like today happening again until perhaps the first trading day of January.  But that's just a guess as usual.  The summation index is getting about as low as it goes.  If that index does turn around here, we'll need to see some more upside.  I do think that it will turn back up here.  However that doesn't mean we won't see backing and filling along the way.  So for me to actually turn a profit on the recent trade will take some doing.  At this point I'm willing to hang on until next year.  But that could be the wrong strategy as well.  However if what I'm thinking about the summation index is true, waiting a few days here would be the right strategy.  The McClellan oscillator was blown out below -300.  It is now on its way back and trying to hit positive territory.  Whether or not it does will say a lot about where the market is going in the near term  Stay tuned for that.  Asia was generally higher and Europe mixed overnight.  We'll see if they follow the US lead tonight.

It was a holiday shortened session but the selling is relentless.  The Dow fell 653 points on light volume.  The advance/declines were almost 4 to 1 negative.  The summation index is heading down.  There are no buyers.  Readings on some of the technical indicators are in the extreme spot they can be in.  There will be an incredible snap back from the low but we don't know where the low will be.  The VIX is incredibly overbought.  These are interesting times.  I don't know what will turn things around but something will.  A short covering rally at the least.  But for now it's just drop, drop, drop.  My SPY January calls are dead.  It's a matter of booking the loss this year or next.  GE fell about 1/4 on light volume.  Gold rallied in a flight to safety.  It gained $15 on the futures.  The US dollar was lower.  The XAU rose 1 7/8, while GDX added 3/4.  Volume was good.  Another missed trade with the GDX calls here.  Mentally I'm feeling better, finally getting over the cold/flu.  Not much else to say here on Christmas eve.  The market is really in an extraordinary funk.  The summation index is in free fall beneath the zero line and you don't see that happen too often.  Rest assured that we'll see a healthy bounce but we just don't know from what level.  I'm also not exactly sure if this will be an extended decline time wise or something like we saw in 1998 or 1987.  For now all we can do is watch and wait.  Europe and Asia were generally lower overnight.  Merry Christmas everybody.

Down, down, down she goes as the Dow lost 414 points on the heaviest volume in years.  Expiration heavy, selling heavy, who knows?  The advance/declines were almost 4 to 1 negative.  The summation index is heading lower with a vengeance and it's already below the zero line.  I keep thinking that this can't just go on but it does.  Not even a day of rally for stocks as the bloodbath continues.  I really don't know what to say because oversold and staying that way seems beyond what we've got going here.  No bounce, no nothing.  My SPY January calls have lost half their value.  I doubt that we'll see another miracle comeback.  This was a trade that I should never have even put in.  I don't know what it will take for buyers to return.  We haven't even seen the usual short covering rally.  Interesting times.  GE lost about thirty cents and the volume remains very heavy.  Gold fell a bout eight bucks as the US dollar was stronger.  The XAU lost 1 1/8, while GDX dropped about 1/4.  Volume was a bit above average.  I'm still considering the GDX January calls but may look to February too.  Mentally I'm feeling tired, still not 100%.  Quite a week as we are in market free fall.  The sidelines are really the place to be unless you're short.  There's not telling how low this will go.  I thought 2500 might hold things and my next level was 2400.  We're almost there.  The 200 week moving average comes in at 2350.  Let's face it, it's all a guess because the market forces are beyond the numbers at this point.  The VIX closed above 30.  The McClellan oscillator will be in the negative 300's.  It could go to the negative 400's because I've seen that before.  But once we get to the bottom there, a bounce will occur.  Maybe next week, maybe not.  It will be a holiday trading week.  Normally I'd say it will be thinly traded but not in this kind of market.  Whatever upside we see probably won't be enough to save my SPY January calls though.  This has been the most bearish December that I can remember.  When the bulls don't show up for Christmas, it means nothing be trouble going forward.  And we've already seen plenty of trouble already.  So like I said, it will be interesting.  Asia was lower with the exception of Hong Kong.  Europe was up overnight.  It's Friday afternoon and time for a break.

The decline just keeps on going as the Dow fell 464 points on extremely heavy volume again.  The advance/declines were 4 to 1 negative.  The summation index is moving lower.  I don't know how low it can go.  Buyers have disappeared in the stock market.  We are seeing a collapse and that was a slight possibility that became reality.  Just how far down we go isn't clear because we should have seen some kind of bounce and it just doesn't happen.  Blown out on all the technical indicators to the downside.  It will end eventually but in this kind of market environment it is better to just step aside.  My SPY January calls are losers but they could possibly make it back to break even when the bounce gets going.  Or not.  Oversold, staying that way and there is no bottom for now.  GE lost 1/4 and the volume remains very heavy.  Gold found buyers on the stock market decline.  The US dollar was lower.  The XAU rose 3 1/8, while GDX added 7/8.  Volume was heavy as we saw a reversal of yesterdays price drop.  I'm still going to have to wait for the short term indicators to get oversold here before attempting the GDX calls.  Gold will find buyers as long as the volatility lasts and the market keeps dropping.  Mentally I'm feeling better.  Extremely heavy volume this week so far as the players are getting things done before the holiday week to finish out 2018.  Selling is the name of the game for now.  I still think we'll see quite a bounce once it gets going.  The trouble is that it looks like there's no bottom in sight despite all the indicators that say we should have saw one already.  But the market goes where it wants.  Rallies will be sold anyway until further notice.  The VIX made it up to 30 today and I don't know how much higher it will go.  All the major indices have tops below tops and 50 day moving averages below 200 day moving averages.  So there is no guessing when it comes to what kind of trend we are in.  I'm trying the SPY calls just for a bounce but my entry timing obviously was off.  We'll see how it goes form here.  The next idea for now is going back to the SPY puts when the VIX hits 16.  That is a long way from here.  Both Europe and Asia were lower last night.  I don't see any change in that either on the horizon.  We'll see how expiration goes tomorrow as we close out the trading week.

The Fed spoke and the market didn't like what it heard.  The Dow fell 351 points on extremely heavy volume.  The advance/declines were better than 2 to 1 negative.  The summation index is heading lower.  Very oversold, staying that way and the long awaited bounce is way past due.  Perhaps the market will crash but I'm not betting on it.  I did place an order for the SPY January calls at a price that I did not expect to get filled.  But it did.  If 2500 is the level where the decline stops in the S&P for a while, this trade will work out.  If not, it's another loser.  We are so technically blown out here that I decided to give this idea a chance.  If we see a huge rally out of nowhere in the next couple of days, I should be out.  The price is where I bought it.  GE saw a nice gain of over 1/3 on very heavy volume.  Money is starting to come back into GE.  Gold dropped a bit, while the US dollar finished little changed.  The XAU got creamed and lost 4 points.  GDX dropped 1 1/8 on very heavy volume.  Perhaps there will be a chance for the GDX January calls after all.  But I'll have to wait for the short term indicators to get oversold and they're not there yet.  Mentally I'm still a little slow.  So here I am in another trade that I certainly didn't expect.  The trend is down for stocks and I'm trying to take the other side of that.  Any kind of gain for this idea has got to be taken because we are in a very strange market environment.  Seasonality has been thrown out the window and the negative tone for equities persists.  There's plenty of time for this trade to work out but it would take a complete turnaround of the current market psychology for that to happen.  I just don't see it at this point.  Like I said, if 2500 is the stopping point for now, the trade could work.  But you can easily make a case for 2400 too.  I'm not sure what I was thinking when I put the order in but I did not expect that it would be filled.  We'll just have to see where things go from here.  With the oversold condition at the moment, being as extreme at it is, there is a chance for success.  We'll see.  Asia was mixed and Europe higher in overnight trade.  We'll keep an eye on how these markets react to the Fed tonight.  

Some bouncing around today as the market decides what to do with itself here.  The Dow rose 82 points on pretty heavy volume.  The advance/declines were negative.  The summation index continues lower.  We're still very oversold any way you look at it.  I think we'll see a decent bounce tomorrow regardless what the Fed does.  The market rarely stays this oversold for this long unless we're going to crash.  I do not see that coming up.  I am looking out to the SPY January calls here and may purchase some tomorrow morning.  The VIX remains elevated and is at the top of its recent channel.  If it does break out to the upside things could get real ugly.  But I don't think that will happen.  GE was up 1/8, pretty heavy volume but came off of the highs.  Gold was up just a bit and the US dollar a bit lower.  The XAU added about 1 1/2, while GDX gained 1/2.  Volume was heavy.  GDX is breaking out above its 200 day moving average.  The rally in the gold shares seems to be for real.  However there is plenty of resistance between the 21 and 22 levels.  We just crossed 21 today.  Mentally I'm still under the weather and not at full speed.  You really need to be in decent health to play this game at your best.  The Fed will come and go tomorrow.  The market will react and then we'll move on.  The selling has been very relentless during a normally bullish period.  That is not a positive sign.  We are way overdue for some upside but whatever it is it probably won't last.  I may try to play the bounce but a better idea is waiting for the VIX to move down to 16 and then trying some SPY puts.  We'll see if I have the patience for that.  The gold shares look like another possible trade on a pullback.  It is a seasonally strong time now for them and that is coming true this year.  Tomorrow should be interesting but I would not be surprised by a huge rally due to the oversold technical condition of the market.  After that, who knows?  Asia and Europe were both lower in last nights trade as they wait for the Fed decision as well.  We'll see what tomorrow brings.

The market got pounded lower again today as the Dow fell 507 points on very heavy volume.  The advance/declines were over 6 to 1 negative.  The summation index is heading lower.  We are very oversold and staying that way.  A bounce is overdue but it probably won't hold.  I did even consider getting some SPY December calls for the week.  But I stayed out.  We've broken all the S&P support and there isn't much else to say about that.  I can make a case for the S&P to stop at around the 2500 level.  But in this kind of market that defies the indicators, anything can happen.  RUT continues to lead the way down.  We'll get the Fed announcement in a couple days and anything can happen after that too.  Buyers have disappeared for now.  It's another 10% correction you'll hear but make no mistake.  The bull market is over and we'll have to wait for the bear to finish before we can really be positive about the trend again.  GE was actually up a nickel on the usual heavy volume that we've seen here for quite a while.  I just went ahead and bought GE today, as this will be a long term hold and I do believe that it will be well worth it in the years to come.  Gold was up today as the US dollar traded lower.  The XAU was up by over 1 1/2, while GDX gained 1/2.  Volume was good.  It does not look like there will be a pullback here for the gold shares in order to try the GDX January calls.  Mentally I'm still not up to snuff as this cold/flu will not go away.  The market doesn't care though.  Oversold any way you look at it but there hasn't been a hint of any kind of sustained rally.  We did have a little bounce at the end of the day of over 100 points but that was probably short covering ahead of the Fed.  Any way you look at things here it doesn't bode well for the stock market.  In what is usually one of the most bullish time periods all we are getting is selling.  We also now have lower lows with lower highs on the charts.  I thin that the next idea will be to try the SPY puts when the VIX gets back to the 16 level.  That seems to be the level where the selling starts.  Another idea would be for the SPY puts if it makes it back up to the declining tops line on the daily chart.  Right here though I'm looking for some kind of bounce because the oversold readings on some of the indicators are at extremes.  Unless we get some kind of crash out of nowhere but that possibility at this stage is remote.  Asia was higher overnight and Europe lower but not to the extent of the US decline.  We'll see what happens overseas tonight.

We finished the week on a downer as the Dow dropped 496 points on heavy volume.  The advance/declines were over 3 to 1 negative.  The summation index is heading lower.  The market tried to rally this week, had a weak bounce and rolled over again.  It must know something that we don't.  Short term oversold and staying that way.  The fact that the summation index made it back to the zero line and was turned away is a huge negative as well on a technical basis.  Option expiration week is coming up along with the Fed announcement.  I'd expect to see some kind of upside at some point but it probably won't last.  RUT has broken down as well.  We have yet to see the wash out bottom that we need to get rid of all the sellers.  Not sure if that will happen any time soon either.  I guess we can hope for the Santa Claus rally.  But it appears that the long bull market has finally come to an end.  GE lost a dime and volume remains heavy.  I'm guessing that we've seen the low here at 6.75 and I'm going to try and buy some of this issue on Monday for a long term play.  Gold fell over $5 as the US dollar was lower.  The XAU dropped 1 1/8, while GDX shed 1/3.  Volume was average.  If the gold shares get oversold I may again try to get some GDX January calls.  Mentally I'm still not feeling right, tired and need to get rid of this cold/flu.  We closed lower for the week on the S&P and things will get even uglier if we don't turn around here soon.  This is the last area of support right here and now.  Oversold and staying there is not a good sign.  No seasonal strength is not a good sign.  A return to the falling summation index and RUT leading the way down all point to even more trouble going forward.  The elevated VIX isn't helping things either.  I'm pretty much on the sidelines until next year at this point.  I'll be checking the charts over the weekend but the risk of trying to get long here is too high for me.  I'm pretty sure that we will see a decent bounce next week but trying to time it will be difficult.  This is the last week before the holidays so you can figure all that needs to be done before the end of year will be taking place.  It should be interesting to say the least.  Europe and Asia were both lower to finish out the week there.  It's Friday afternoon and time for a rest.

A mixed bag today but the Dow managed a gain of 70 points on good volume.  The advance/declines were almost 2 to 1 negative.  The summation index is still tracking lower.  The NASDAQ was lower today along with RUT.  That isn't a good sign for the bulls.  I'm not exactly sure what's driving prices here.  We've broken down from the near term support in RUT.  The other indices are trying to hang in there for now.  We need to see some upside soon or there's a chance the overall market will break support and roll over here as well.  RUT is generally the leader and has already found fresh lows.  GE got a bump on an analyst recommendation.  It rose 1/2 on extremely heavy volume.  Gold was slightly lower with the US dollar just the opposite.  The XAU and GDX had minute gains on average volume.  Mentally I'm still slow, not 100% and feeling tired.  I am again going to cut the blog short today.  Asia was higher and Europe slightly lower last night.  We'll close out the week tomorrow.

A rally to start the day but it tailed off again.  The Dow did gain 157 points on good volume.  The advance/declines were almost 2 to 1 positive.  The summation index is trying to turn around again.  I think that the market is being held hostage by the Brexit drama out of England at the moment.  We did expect a bounce and got it today.  Whether or not it has any staying power remains to be seen.  Volatility still rules the day and with that backdrop no rally is safe.  The usual seasonal bullishness is absent and that is a problem for the bulls.  GE was off a nickel and the volume remains heavy.  Gold was up a bit today as the US dollar was lower.  The XAU added 1 1/2, while GDX rose 3/8.  Volume was good.  The gold shares are overbought and staying that way.  If GDX can get through 20.5 there should be more room to run.  Mentally I'm still a bit off, not feeling well again.  I'm tired with some kind of cold or flu and the concentration just isn't there.  I'll be cutting the blog short again but the basic bearish theme remains.  Europe and Asia rallied overnight.  We'll see what comes out of England tomorrow.

It as an up and down session to be sure and the Dow ended with a loss of 53 points on good volume.  the advance/declines were slightly negative.  The summation index is heading lower.  The market opened up around 300 points higher but could not hold on.  Not sure exactly what is going on here but it isn't positive for the bulls.  This is normally a very good time for the market but this year is different.  The VIX remains elevated and volatility is now the rule.  I don't have any SPY trades in mind here at the moment.  We are short term oversold though.  Even if we get a pop to the upside here the overall tone is bearish.  GE was off over 1/8 and the volume remains very heavy.  Perhaps some tax loss selling going on here.  I'm still looking to purchase GE down here for a longer term investment.  There has been so much bad news here and the dividend has been cut as far as it can go.  I do not think that this company will simply fold but I could be wrong.  Gold was a bit lower and the US dollar a bit higher today.  The XAU and GDX had slight fractional losses again on good volume.  Mentally I'm feeling a bit tired, still not feeling well.  In a way we're still waiting for the market to figure out what it wants to do here.  But I must say that all the technical evidence points to bearish conclusions.  It appears that the market has found its top and is in the process of rolling over.  Even though we are short term oversold any rally will probably be sold into.  The game has obviously changed.  If we can ever get below the 15-16 level on the VIX, then I'd say we're back to the bull case.  However that does not appear to be in the cards anytime soon.  Asia was mixed and Europe higher last night.  We'll see what tomorrow brings.

It was a one day reversal to the upside as the Dow, which was down 500 points, made it all the way back to finish with a gain of 34.  The advance/declines were 2 to 1 negative though.  Volume remains heavy.  The summation index is moving lower.  Perhaps today it was short term bottom that was put in but there's no telling in this volatile market.  The VIX almost made it to 26.  RUT was negative but could be at a short term bottom along with the TRAN.  We'll have to see how it plays out from here.  GE was off a few cents and closed below 7.  I do have an order in to buy the stock at lower levels but it isn't a trade, it will be long term.  Gold was off a couple bucks and the US dollar was higher.  The XAU and GDX had fractional losses on OK volume.  Mentally I'm feeling tired and I have a chest cold so I'm not up to snuff.  You cannot make the proper decisions when your health isn't where it's supposed to be.  I'm also going to cut the blog short to get some more rest.  We saw a comeback in stocks two days ago and then we simply headed right back down.  The market is more oversold this time around, so perhaps we can get a few days of rally.  Support has broken down though and numerous indices have had their 50 day moving average drop below their 200 day.  The back drop for stocks here is negative.  Europe and Asia both traded lower last night.

Another downer on Wall Street as the Dow fell 558 points on heavy volume.  The advance/declines were 2 to 1 negative.  The summation index has turned lower.  The jobs report was a bit light.  After a brief rally the market nosedived, which negated whatever positive price action we saw with yesterdays comeback.  The RUT broke below its recent support and that is a harbinger of lower prices for the rest of the indices in my opinion.  There will be no miracle comeback for the bulls in the near future.  I dumped my SPY December calls for a 90 % loss.  They had a 50% gain on Monday.  But that is the nature of the game and goes along with what is my worst year of trading that I can remember.  Like I've said, I don't really know what's going on here but the market is never wrong.  There's still two weeks left in the December option cycle, so it's possible that I'll try another trade but I doubt it.  GE was off 1/3 and the volume remains heavy.  Gold was up on the futures and we've broken resistance at $1240.  The US dollar was lower.  The XAU added 1 1/2, while GDX gained 1/2 on heavier volume.  The gold shares are looking like the place to be but I think that it's too late for that trade.  Mentally I'm feeling OK.  The S&P is back to its near term support on the daily chart.  The indicators are just about oversold.  The weekly chart looks terrible with a very large bearish engulfing pattern on the candlestick version.  Also on the daily chart the 50 day moving average just crossed over the 200 day moving average to the downside.  The technical picture for the S&P is negative.  The VIX is getting overbought but isn't completely there yet.  I really don't see any good news coming from anywhere to turn this thing around in the near term.  All the good news came out early in the past week.  I guess there isn't much more for me to do here except lick my wounds and move on.  Asia was mixed and Europe generally higher overnight.  It's Friday afternoon and time for a break.

Volatility rules.  We were off almost 800 points today but the Dow came back and finished with a loss of 79 points on extremely heavy volume.  The advance/declines were negative.  The summation index is heading sideways but trying to turn down.  New lows expanded to there biggest total recently.  The VIX spiked to almost 26 then backed off.  The market did hold where the double bottom lows were but it doesn't feel as though things will hold up here.  The NASDAQ did manage a gain which is quite something on a day like this.  I don't know the reason for all the selling but you cannot ignore the price action.  Something is going on.  My SPY December calls are still dead.  GE was actually up a few cents on heavy volume.  Perhaps GE is sold out here.  I mean what's left to go wrong with that stock?  Gold finished flat on the day and the US dollar was a bit lower.  The XAU and GDX had slight fractional gains on OK volume.  I canceled my open order for the GDX January calls.  If GDX gets to the bottom of the recent trading range, I might try this idea again.  But I decided that with all the recent craziness I'd simply step aside.  Mentally I'm a little side tracked, with outside the market everyday issues taking up some of my mental time.  Nothing serious like the hospital incident of a couple years ago.  We'll get the jobs report tomorrow and that should set the tone for the day.  Today price action did have the make up of a bottom.  But we won't know for sure until we see what happens from here.  If we rally tomorrow you could make a case for a short term bottom at least.  However if we drop back down and break the recent lows you can be sure that more trouble is on the way.  I think that it is safe to say that at the moment the market is out of control.  That is not a bullish scenario.  Still two weeks left in the December option cycle.  The trade I'm in already had one miracle comeback, could another be in store?  Highly unlikely but the market does go where it wants to.  We'll see how it goes tomorrow and take it from there.  Europe and Asia got clocked last night after Tuesdays US debacle.  We'll keep an eye on the overnight developments and close put the trading week tomorrow. 

The Dow got clobbered today as it dropped 799 points on extremely heavy volume.  The advance/declines were 5 to 1 negative.  The summation index is still moving up but at this rate it will turn back down soon.  The VIX has spiked back up above 20.  All the positive market action of the past week has been erased.  Volatility rules and it's both ways.  The S&P had good volume on the break above the declining tops line and we have plowed right back under that line.  The double bottom that was in place has been negated.  I don't know what the real story is for todays price action because there was no news to cause it.  The market knows things that we don't so be prepared for something out of the blue.  My SPY December calls that were showing a profit yesterday are now back to dead.  That's how quick things can turn in the game.  I guess we know now to take our cues from the VIX.  If it gets back to 16 again, get short.  We were short term overbought but certainly could not have predicted this kind of day off of that.  RUT is usually the leader and it got crushed.  Another day like today will take it to fresh lows.  Keep an eye on it.  GE lost 1/2 on very heavy volume.  I'm looking for a long term trade here by actually buying the stock at some point this month.  Gold was off a couple backs as the US dollar was higher.  The XAU and GDX had slight fractional moves higher on OK volume.  Mentally I'm feeling OK.  I'm not sure what is going on here and when that's the case it is best to just step aside.  The markets will be closed tomorrow due to the death of former president George H.W. Bush.  That will give the rest of the world time to digest what we saw happen in the US today.  I would expect selling around the globe.  As for the S&P, there is plenty of room to move down on the technical indicators and I would not be surprised to see this sell off continue.  Once again, I don't know the reasons and the market does.  When things are looking to go one way and they turn around and do the opposite you must take notice.  The market is telling us something here that it knows and will probably be revealed in due time.  One day doesn't make a trend and yes after the US/China agreement perhaps all the good news was out there.  But buyers never stepped in today and there's got to be a reason for that.  Europe and Asia were lower overnight with the exception of Hong Kong.  We'll take a day off tomorrow and brace for Thursday morning.

We got a rally out of the US/China developments as the Dow rose 287 points on heavy volume.  The advance/declines were almost 3 to 1 positive.  The summation index is moving higher.  This is good news for the bulls because the S&P 500 has broken through the declining tops line that began in October.  The volume was good so the break is for real.  We are at near term resistance of 2800, so a pause here would not be out of the question.  The short term technical indicators are also overbought.  So stalling for a while or a drop lower from here would be acceptable.  My SPY December calls are now showing a profit.  Of course waiting for the double bottom would have been the much better play.  But I'll take what I can get if this trade does pan out.  The measurement of the double bottom would take us to new all time highs but I don't know if that will occur before expiration on the 21st.  GE was up 1/3 and the volume remains very heavy.  Gold was higher today along with the US dollar.  The XAU added 1 1/3, while GDX gained 1/3.  Volume was a bit above average.  I still have my open order in for the GDX January calls.  Once again , it would take some decline to get this filled.  The gold shares don't seem to be moving much either way right now and I may consider canceling this idea.  Mentally I'm feeling a little tired, did not sleep well.  The VIX has now reached its 200 day moving average and the 16 level.  What happens here must be watched.  If we break and close below the 200 day moving average that would be a good sign for the bulls.  But we are short term oversold on this indicator.  A move up in volatility and a move lower for stocks in the near term is very possible.  But if we continue higher and the VIX continues to drop, the rally will have legs.  The positive action in the summation index is another plus along with the seasonal bullishness.  My guess is that the decline is over but I'd like to see some better action in RUT to be completely sure.  Europe and Asia rallied as well.  Money is coming back into stocks around the world.  We'll see how long that lasts.