Back and forth was the name of the game today as the Dow fell 166 points on heavy volume. The advance/declines were slightly negative. The summation index is beginning to move sideways. We are in headline risk mode as the war between Russia and the Ukraine is at the forefront. My guess is that the market is turning back up here and making its way back to the down trend line for the S&P. The NASDAQ was higher today and that's a plus. The short term indicators for the S&P 500 have made it back to mid-range. We'll look for the S&P to make it back to 4480 and decide what to do from there. Gold was up twenty bucks on the futures. The US dollar was slightly higher and interest rates dropped. The XAU and GDX were basically unchanged on good volume. I'm still waiting for GDX to make it down to the 33 level or lower to try the April calls there but it may not happen. Mentally I'm feeling OK. The VIX was higher today as the volatility continues. It remains elevated with the short term indicators mid-range. The Dow gained over 300 points in the final half hour. That's the kind of market that we're in at the moment. Opportunities to be sure but you better be nimble and keep a close eye on the ongoing developments. We do have a game plan in place as we will wait for the S&P 500 to make it back to the down trend line that began in January and decide whether or not to try the March SPY puts there. Europe was lower and Asia generally higher overnight. We'll keep an eye on the ongoing developments this evening.

Continuing higher as the Dow gained 834 points on heavy volume. The advance/declines were better than 4 to 1 positive. The summation index is trying to stabalize. I think it will be successful. The head and shoulders top on the S&P 500 has now been negated with the move back above the neckline. A case could be made that we are simply making another down sloping neckline but time will tell on that. The short term indicators for the S&P have turned up. Yesterday was a washout to the downside early on panic selling which marks the end of the decline for now. We will wait for the S&P to get back to the down trend line at around 4480 to try the SPY March puts. At this rate we'll be there in a couple days but I'm not predicting a straight line back up. The market does however go where it wants. Gold was lower again and the futures closed below $1900. The dollar dropped as well and interest rates held steady. The XAU was up 2 1/2, while GDX gained over 1/4. Volume was lighter than lately. I again put in an order for some GDX calls overnight but canceled it during the session. The gold shares followed the market higher today. I am looking out to the April contracts for GDX. I'd prefer to see GDX get to short term oversold before trying this next trade but that may not occur. Mentally I'm feeling OK. The VIX was lower today and the short term indicators have turned down. Ideally we'd like to see the VIX move down to the 20 level before attempting the SPY puts. But markets rarely cooperate with what we'd like. Stocks looked like they would fall off a cliff this week but the indices held on. There is a lot of bears out there now in the press and that makes me think that a rally is at hand. Not back to new all time highs but perhaps enough to get through that down trend line that has been in effect since January on the S&P. That would change the sentiment back to bullish and set up the next leg lower. It is also possible that the decline has ended for good since we are in negative territory on the summation index and probably about to turn back up. So there is plenty to ponder going forward. I'll be checking the charts as usual over the weekend. Europe and Asia rallied to close out the week. It's Friday afternoon and time for a break.

It was one of those days on Wall street as we had a huge gap lower at the open and then made it all the way back. Russia invaded the Ukraine overnight and that sent markets into a tizzy. The Dow finished up 91 points after being down 900. The advance/declines were positive. The summation index is still heading down. Volume was very heavy as the one day reversal to the upside probably halts the downturn for now. The S&P 500 was off 100 points and then finished up over 60. The short term technical indicators here have turned up. Short covering and bargain hunters showed up today. Once the invasion took place, what other bad news could possibly come out? The market is in a headline risk mode. We'll wait for the S&P to get back to the down trend line and try the SPY puts there. The NASDAQ led the way back today and that is a plus. Gold had a reversal too but it was the other way around. The futures lost a dozen after opening up over fifty. The dollar was higher and interest rates finished little changed after falling early. The XAU 2 3/4, while GDX shed 2/3. Volume was extremely heavy here as traders bailed out on the news of the Russian action. I did place an order for the GDX March calls overnight but it wasn't filled and I canceled it when gold began to drop. The gold shares did finish off of their lows for the session. The short term indicators for GDX have turned lower. If I do attempt the GDX calls it probably would be better to go out to the April contracts. Not exactly sure what to do here and I'll ponder this idea overnight. Mentally I'm feeling OK. The VIX climbed early and then reversed as the market rallied. It finished a bit lower but is still above 30. The short term indicators are trying to turn down and a positive session for stocks tomorrow should do it. But who knows what tomorrow will bring ahead of the weekend. Today the bulls took a stand to not to have the market collapse. Short covering played a role in that. However interest rates are still set to rise, inflation hasn't gone away and neither has the coronavirus. The summation index is still in negative territory and still moving lower. So I certainly don't think that today was the final bottom for stocks going forward but I could be wrong. Europe and Asia got clobbered overnight. Perhaps they can get a bounce like the US tonight. We'll close out the trading week tomorrow.

Stock markets continued lower today as the Dow fell 464 points on good volume. The advance/declines were 3 to 1 negative. The summation index is moving lower. The NASDAQ led the way down and that's a negative. Oversold and staying that way for the S&P 500. Todays price action takes us through the neckline of the head and shoulders top. Things would have to turn around immediately to save us from a pretty nasty drop from these levels. When a market is oversold and stays that way it always means trouble. We should have at least seen some kind of bounce recently but it hasn't happened. 3800 or lower is the measuring objective of the head and shoulders. The retest of Januarys lows is about to fail. Gold was up around five bucks. The US dollar was higher along with interest rates. The XAU gained 3 1/4, while GDX rose almost 2/3. Volume was average. The gold shares continue to attract money despite being overbought. I'm still looking at the GDX March calls but cannot bring myself to buy them when they are so overbought. Still remaining patient for now. Mentally I'm feeling OK. The VIX was higher today as yesterdays black candlestick on the daily chart did not turn things around. Almost completely short term overbought here. The VIX closed above the 30 level as volatility is here to stay. We also have the summation index in negative territory and moving lower. Interesting times indeed. We'll need to see some kind of market stabalization tomorrow or things will get ugly to the downside fast. With the current geo-political problems and the prospect of higher interest rates it will be tough for the market to sustain anything to the upside. Probably the most we can hope for is not an all out collapse near term. Asia was generally higher and Europe lower overnight. We'll see what tomorrow brings.

More selling to begin the week as the Dow fell 482 points on heavy volume. The advance/declines were better than 3 to 1 negative. The summation index is moving down. Stocks did finish up from their lows of the session. It looks like this is a retest of the lows from the end of January and so far things have held up. The bulls need to show up here or the measuring objective of the head and shoulders top on the S&P 500 is the 3800 area or lower. Ideally I'd like to see things hold here, a light volume rally back to the down trend line and that would set us up for the March SPY puts. The premiums on the puts now are inflated due to the time left and the current volatility. Russia vs. Ukraine is still dominating the headlines but this won't go on forever. The S&P 500 remains below its 200 day moving average but is short term oversold. Any sign of something that avoids an all out war should spur a rally. Gold finished up only a buck after being higher early on. The US dollar and interest rates finished little changed. The XAU fell a couple points, while GDX shed over 1/3. Volume was average. GDX remains short term overbought and I'm trying to remain patient here before attempting the calls again. Gold has had a good run and some kind of move lower or consolidation is due in my opinion. However we have seen money come into the precious metals and I believe that they have more room to go on the upside longer term. Mentally I'm feeling OK. The VIX was higher today but there is a black candlestick on the daily chart which could turn the VIX lower in the near term. The short term technical indicators here are still pointing up though. So this indicator is giving mixed signals. The NASDAQ didn't lead the way down today and that's a slight plus. We're at an important juncture for the market right now so paying close attention is necessary even more than usual. Asia was lower but Europe finished mixed. We'll keep an eye on the overnight developments.

The Dow fell 232 points on good volume. The advance/declines were negative. The summation index is still in a sideways channel. Once again the NASDAQ led the way down. The S&P 500 is now short term oversold but not completely so. We'll try and remain patient and wait for prices to get back to the down trend line that has been in place since the beginning of January. There are also potential head and shoulders patterns on some of the major stock index daily charts. The problem there is when everybody sees the same thing, it usually doesn't happen. Gold treaded water today after being lower early on. The US dollar was higher and interest rates were a bit lower. The XAU was off 1 3/8, while GDX shed 1/4. Volume was average. Remaining short term overbought for GDX. GDX is due to take a break and we'll wait for that before trying the calls. Mentally I'm feeling OK. The VIX was lower today despite a down market. That doesn't fit the normal pattern. Not sure what to make of it. Still above the 20 level on the VIX so volatilty in in the forefront. The S&P 500 closed the week below its 200 day moving average. The weekly chart has price almost at the lower Bollinger band. The indicators here are oversold but have room to move lower. Monday is a holiday in the US. Waiting for Russia to invade the Ukraine seems to be roiling the markets. I don't expect that to happen but who knows? The market is also hostage to higher interest rates and inflation for now. We recognize that money is flowing into gold and will try and take advantage of that situation. We also see that the game has changed as stock market rallies are now for selling. I'll try to keep these things in mind going forward. An extra day of rest this weekend and it is welcomed. Plenty of work to do as usual. Europe and Asia were lower to close out the week. It's Friday afternoon and time for a break.

Sellers took over today as the Dow fell 622 points on good volume. The advance/declines were 3 to 1 negative. The summation index is still in a sideways channel. More geo-political tensions as the Ukraine situation continues to be in the headlines. The NASDAQ led the way down and that is negative. The S&P 500 is back below its 200 day moving average and the short term indicators have rolled back over. I had thought we'd see some gains going into tomorrows expiration but that guess was wrong. We'll stick with the technicals when it comes to trading. Long weekend ahead and I don't expect anybody to be buying now ahead of it. I'll remain on the sidelines for now. Gold is moving straight up on the prospect of war. Getting ahead of itself in my humble opinion but you cannot argue with price. We hit $1900 today as the futures gained thirty bucks. The US dollar was slightly higher while interest rates dropped. The XAU soared 4 points, while GDX was up 1 1/4. Volume was heavy to the upside. GDX is now pretty far away from its 50 day moving average and also short term overbought. That doesn't mean that it won't go higher but we'll wait for some type of pullback before thinking about the calls here. There is a longer term down trend line at the 36 level that should stop things if we get there. Money is definately moving into gold and the gold shares. Mentally I'm feeling OK. The VIX turned around today and if it continues we'll see lower stock prices near term. There is room on the short term indicators to move up and we are not overbought here yet. Down trend lines continue to rule the daily stock index charts. Perhaps we're on our way to retest the recent lows in the S&P. We'll have to wait and see if they hold. Asia was mixed and Europe lower overnight. We'll see how expiration Friday goes tomorrow.

A mixed bag type of session as the market tried to figure out where it wants to go. The Dow fell 54 points on average volume. The advance/declines were shy of 2 to 1 positive though. The summation index is tracking sideways. Retail sales were better than expected but the market sold off. The Fed minutes gave things a boost later in the day. The Dow and NASDAQ finished in the red, with the S&P 500 showing a small gain. The short term technical indicators for the S&P are now mid-range. So we could go either way here but I do think the market will head higher into option expiration. That's a guess as usual. Gold was up $15 on the futures as the rally continues. The US dollar was lower and interest rates were steady. The XAU was up 3 3/4, while GDX climbed another point. Volume remains good here. Barrick Gold, the second largest gold producer, announced a billion dollar buyback today. Three days before the February option expiration. Coincidence? I'll let you decide. Short term overbought for GDX and I was looking at the February puts here for a short term trade. But the risk is plenty with only two days left. The better trade is probably waiting for a pullback in GDX to try the calls. Mentally I'm feeling OK. The VIX was lower today but still above the important 20 level. The technicals here are also mid-range. Really no point in guessing here, I'll just try and wait for a valid signal either way. The down trend line for the S&P 500 is still in charge. We've got a long weekend ahead with the Presidents holiday on Monday. So patience is advised for now. Europe was lower and Asia higher in last evenings trade. We'll see what tomorrow brings.

We got a bounce today as it now appears that the so called conflict in the Ukraine is not going to happen. The Dow climbed 422 points on average volume. The advance/declines were 3 to 1 positive. The summation index is back to tracking sideways as it cannot make up its mind where to go. The NASDAQ led the way higher and that's a plus. The inflation data was stronger than expected but the market shrugged it off. The short term indicators for the S&P 500 have turned up. Perhaps we'll see the usual positive bias going into the expiration on Friday. We'll get the Fed minutes tomorrow and that has the potential to be a market mover. Too late for any SPY February option cycle trades for me at this point. Gold fell on the prospect of peace as the futures dropped $15. The US dollar fell as well but interest rates continued higher. The gold shares sold off early but made their way back. The XAU shed about 1 1/2 and GDX lost over 1/2. Volume was good. Still short term overbought on the gold shares. Mentally I'm feeling OK. The VIX dropped today as the daily candlestick chart pattern there proved to be correct. The short term indicators here have turned back down. This implies that we'll see more gains for stocks. So for now we'll wait for the prices on the S&P to get back to the down trend line and decide what to do when they get there. That would be the area to try the SPY puts again but premiums will be high as we roll into the March option cycle. For now we'll just wait and see. Asia was mixed and Europe higher overnight. We'll keep an eye on the overnight developments.

The market is trying to figure out what to do here as the Dow fell 172 points on average volume. The advance/declines were better than 2 to 1 negative. The summation index is starting to move lower. The Dow was the underperformer today. The S&P remains below its 200 day moving average but the short term indicators are trying to turn back up here. Inflation data out tomorrow will be the primary market mover. 4 days to go in the February option cycle and I'm leaning towards maybe trying the SPY calls. Gold continued its run higher as the futures gained thirty dollars. The US dollar was up, joining in the flight to safety trade. Bonds however did not take part as interest rates rose. The XAU added 2 1/4, while GDX was up 2/3. Volume was good. Money is finding a home in gold but we are now short term overbought. We will have to wait for GDX to get back to oversold before trying the calls here again. This a move that we missed after trying the calls in the January option cycle. I am a believer here now though and will not hesitate to try the calls when the time appears to be right. Mentally I'm feeling OK. The VIX spiked up above 30 again today. The short term indicators continue to move higher and imply more selling. However the daily candlestick chart here indicates that a turnaround is possible right away. I'm not sure exactly what to think but if we have conflicting technicals it's better to wait until the majority line up one way or the other. Probably the prudent thing to do here is let the February option cycle pass and get ready for March. I sold the SPY February puts too early and missed the GDX calls for this month. Perhaps the sidelines is where I'll stay for now. But we'll see. Europe and Asia were lower overnight. We'll see how the market reacts to the inflation data tomorrow.

Geopolitical tensions were the excuse for todays market action as the Dow fell another 500+ points on heavy volume. The advance/declines were better than 2 to 1 negative. The summation index is still in a sideways band. It remains in negative territory and that is unusual. A report surfaced today from the US that Russia will stage an attack on the Ukraine next week. As if the US knows what plans the Russians have for an invasion. The NASDAQ led the way down again. The S&P 500 closed below its 200 day moving average. The down trend line that began in the beginning of January remains in effect. The short term technical indicators here have rolled over and have room to go lower. Sure wish I still had those SPY February puts. The weekly candlestick chart for the S&P looks negative. Option expiration week on tap and I wouldn't chase anything here. Gold soared as the flight to safety trade took over for today. The precious metal futures rose over twenty five bucks. The US dollar was higher and interest rates dropped as bonds became a haven. The XAU jumped 6 2/3, whike GDX gained 1 3/4. Volume was heavy. It was a complete reversal from yesterdays price action here. I did put in an order for some GDX February calls but it never came close to being filled. I was too slow to react as the move in the gold shares caught fire. Getting short term overbought now for the gold shares but there is a little room for the indicators to go higher. But what happens if there is no invasion next week? Mentally I'm feeling OK. The VIX spiked again but did finish off of its best level of the day. It was up over 30. There's plenty of room on the short term indicators here to go higher. If the indicators do continue up we'll see quite a drop in stock prices next week. I'm not so sure that will happen but the potential is there. Volatility rules for now. There will be some opportunities next week with options expiration but you'll have to be pretty nimble. I'll go over the charts this weekend and try to come up with something. However the risk will be elevated with not a lot of time left and inflated option premiums. Hopefully I'll be up for the challenge. Europe and Asia were lower to finish the week. It's Friday afternoon and time for a break.

Sellers took over the day as the Dow fell 526 points on heavy volume. The advance/declines were 3 to 1 negative. The summation index is back to tracking sideways. The inflation data came in a bit worse than expected. We sold off early, made it all the way back to unchanged and then fell apart. The S&P 500 is still short term overbought on some of the indicators despite todays drop. The NASDAQ was the leader to the downside. I sold the SPY February puts that I purchased yesterday early in todays session for a 40% gain. It proved to be the wrong move as they were worth much more by the close. This trade had a good entry and a lousy exit. I may consider trying the puts again next week ahead of the wholesale inflation data. Gold dropped $9 on the futures. The US dollar bounced around but finished higher. Interest rates climbed again with the ten year treasury now north of 2%. The XAU fell 3 1/3, while GDX lost 7/8. Volume was good to the downside. I'm still considering the GDX February calls but there's only six days left in the February option cycle. However I could also make the case for sitting out until there is a better technical entry point. Mentally I'm a bit disappointed for getting out of the SPY put trade so early. But at the time it looked like the early stock decline was not going to hold. But it did and ended up going lower. That trade is over and must be put behind as the markets will keep moving. Other opportunites will follow. The VIX spiked higher as the 20 level held. It is back above its 50 day moving average. The short term indicators for the VIX have turned back up. If the indicators continue higher, the VIX will climb and the market will fall. I'm not quite that sure that will be the case this time around but we'll see as time goes forward. We do still have a down trend line that remains in effect for the S&P and other indices as well. Asia was higher and Europe mixed overnight. We'll see if we get any downside follow through and close out the trading week tomorrow.

Continuing higher as the Dow soared 305 points on good volume. The adance/declines were better than 2 to 1 positive. The summation index has turned higher again. The NASDAQ led the way today and that is a plus for the bulls. The S&P 500 has just slightly broken through the down trend line that has been in effect since the beginning of the year. It is short term overbought. I went back and forth about trying the SPY February puts ahead of tomorrows inflation data. However I did leave my order out there and it did get filled. It is showing a small loss. The stop loss order is in. If we get some early selling tomorrow I'll be out because the tone of the market has changed and there is much too much bearishness out there. Also the summation index needs to start moving back up as it is in negative territory. It usually does not stay there unless we're in a bear market. Gold was up another six bucks on the futures. The US dollar was a bit lower while interest rates were steady. The XAU and GDX had slight fractional moves one way or the other on light volume. Waiting on tomorrows inflation data. The light volume leads me to believe that there's still a lack of interest here. Mentally I'm feeling OK. The VIX was lower and is right at the 20 level. It is short term oversold. Tomorrows movement will tell us a lot. If the market is higher and the VIX drops through 20, we can say that the market decline has run its course. If the VIX bounces back up from here then volatility is not over yet. I'm banking on the latter but a case could be made either way. At any rate my position has been taken and we'll see how it goes tomorrow. Europe and Asia were both up last night as money is flowing back into stocks around the world. We'll see what tomorrow brings.

To the upside today as the Dow gained 372 points on average volume. The advance/declines were positive. The summation index is still tracking sideways. The NASDAQ led teh way higher and that's a plus. The S&P 500 is getting close to short term overbought. It is also getting close to the down trend line that has been in effect since the beginning of the year. I've put in an order for the SPY February puts that should get filled if we reach that down trend line. I'm not overly confident in this idea because the summation index needs to start moving back up. But I'm willing to give it a try if it gets filled tomorrow ahead of the inflation data on Thursday. Gold rose six bucks on the futures. The US dollar and interest rates were a bit higher. The XAU gained 2 1/2, while GDX was up 1/3. Volume was light today. The gold shares have done well lately and there's still room on the short term technical indicators to go higher. This was a missed trade on my part but we'll see how it goes into the February expiration. If gold pulls back on the CPI on Thursday perhaps there will be a chance to try the calls. Mentally I'm feeling OK. The VIX was lower today and finally made it through the 50 day moving average. Still above 20 though. Short term oversold here as well. If we make it through 20 then I'll be back in the bullish camp despite being oversold. If the 20 level holds then we'll see some more selling and the SPY put idea will work. It's a matter of the market deciding what it wants to do here. Europe and Asia were generally higher in last nights trade. We'll see how things go tomorrow.

Another back and forth session to begin the week as the Dow was up a point on average volume. The advance/declines were slightly positive. The summation index is moving sideways. It looked like we would have solid gains for the indexes but the market tanked in the final hour. That's been the pattern lately. I was hoping for some strength before the inflation data on Thursday in order to try the SPY February puts. Probably won't happen. Staying patient for now. Gold was up almost $15 on the futures. Both the US dollar and interest rates were steady. The XAU gained 4 1/4, while GDX was up 7/8. Volume was average. Looks like I'm too late for the GDX February calls. I do think that the gold shares will move higher into the option expiration at the end of next week. If the overall market decides to sell off and take the gold shares with it perhaps there will be a chance to try this trade. Otherwise I'll have to sit on the sidelines for now. Mentally I'm feeling OK. The VIX was lower today and has gotten short term oversold. The 50 day moving average has provided resistance for the VIX to move lower so far. It seems to me the next move for the VIX would be higher which would coincide with another market drop. Just a guess on my part. For now I'll wait and see if the S&P can make it back to the down trend line before Thursday. Asia was mixed and Europe higher to begin the week. We'll keep an eye on the overnight headlines.

It was an up and down type of session as the market tried to make up its mind what to do. The Dow was off 21 points on good volume. The advance/declines were slightly negative. The summation index is moving sideways. The jobs report came in better than expected. We were back and forth then got a decent rally only to drop in the final half hour. The NASDAQ was up over 200 points and that's a plus even though it was mostly due to Amazons earnings beat. We also didn't get any downside follow through to yesterdays debacle. The S&P 500 remains below its recent down trend line but the short term indicators are trying to turn back up. It might be worth it to try the SPY February puts if we make it back to that line but we'll see. Gold finished up a few bucks after bouncing around during the session. The US dollar finished little changed but interest rates rose. The XAU and GDX had fractional gains on light volume. I did have an order out there for the GDX February calls but canceled it before the close. Not exactly sure now what to do regarding GDX in the near term. Mentally I'm feeling OK. The VIX was a bit lower today. Still above the 50 day moving average and the 20 level. Getting short term oversold on the technical indicators. I have more questions than answers right now and that doesn't inspire much confidence for trading. Plenty to ponder over the weekend while checking out the charts. Two weeks left in the February option cycle so there's time to take on a trade. Some economic data due out next week but Thursdays inflation report will be the most watched. Asia was mixed and Europe lower to finish the trading week. It's Friday afternoon and time for a rest.

We saw selling from the start today as the market had a gap lower at the open. The Dow lost 518 points on good volume. The advance/declines were better than 4 to 1 negative. The summation index is now tracking sideways. Earnings were missed will be listed as the cause for todays sell off. But the major indices had gotten back to the now in charge resistance levels and pulled back. The NASDAQ lost over 500 points and the S&P 500 over 100. So the down trend lines are in charge there for now. We'll get jobs data out tomorrow and that should be another market mover. Gold was off a few bucks today. The US dollar continues to fall and interest rates were up a bit. The XAU fell 2 1/8, while GDX dropped over 1/3. Volume was light. I did place an order for the GDX February calls but it wasn't filled. I adjusted it and am leaving it out overnight. GDX has slightly risen from its oversold condition and followed the market down today. I'm not exactly sure this trade will work but I'm willing to give it a shot with 2 weeks left in the February option cycle. Mentally I'm feeling OK. The VIX was up today but the short term indicators have barely moved up. The 50 day moving average proved to be resistance for the VIX to move lower. Volatility remains the rule when the VIX is over 20. If the VIX continues higher here we will see quite another drop in stocks. My thinking is that perhaps the VIX will move sideways here along with the indicators before we really see the next leg down for stocks. I could be wrong and the market goes where it wants. I also see that the futures have risen after the close today so perhaps a company has come out with better than expected earnings after the bell. Asia was mixed and Europe lower overnight. We'll close out the week tomorrow with all eyes and ears on the jobs report.

Up, up and away as the Dow rose 224 points on good volume. The advance/declines were negative though. The summation index has turned back up. We got a very strong move from the extremely oversold condition for the market last week. We are now at the moment of truth as we are just about at the declining tops line for the S&P 500. We're not completely overbought here but it has been a straight line up and I do not think it will continue. I did place a couple orders for the SPY February puts today but they weren't filled. Option premiums remain elevated and that is an issue. However I'm leaving my put order out there and if we do get some upside tomorrow that would be the time to try the puts. But it may already be too late as I see the futures are selling off after the close. Gold was up another five bucks today. The US dollar continues to drop and interest rates remain steady. The XAU and GDX had fractional moves one way or the other on light volume. GDX has stalled at its 50 day moving average. Mentally I'm feeling OK. The VIX was slightly higher despite the gains today which doesn't fit. It's hanging around its 50 day moving average and still above the important 20 level. As long as it remains above 20 we can expect volatility to continue. Hopefully I'll get a chance for the SPY February puts ahead of the employment report on Friday. Asia was up and Europe mixed in last nights trade. We'll keep an eye on the overnight developments.

Continuing higher as the Dow gained 273 points on good volume. The advance/declines were better than 2 to 1 positive. The summation index has stopped going down. It is only a matter of time before it starts to move higher. The Dow was the leader today but the 3 major indices had nice gains. The short term indicators for the S&P are moving up. We now have a down trend line there that comes in at around 4600. That would be the spot to try the SPY February puts. If we get there before Friday, that will most likely be the next trade. Will we just keep moving up to new all time highs? I don't think so but I've been quite wrong before. Gold was up five bucks today. The US dollar continued lower and interest rates were a touch higher. The XAU was up 1 1/2, while GDX added 1/4. Volume was light. I'm still considering the GDX February calls but would like to see a trip back down to the 29 level. Probably won't happen. Mentally I'm feeling OK. The VIX is heading lower and closed at its 50 day moving average. Not yet short term oversold here. Still above 20 though. If we can get below there I'll have more confidence in the rally. The VIX has been correct in projecting higher near term stock prices. It also helped that the market was extremely oversold. But the question is where do we go from here? My guess is that the jobs report on Friday has the potential to be a big mover. But we still have two days to go before that. Europe and what was open in Asia were up last night. We'll see what tomorrow brings.