The Fed speaks and the market pretty much goes wherever it wants to. Stocks soared on the Fed speech today as the Dow climbed 737 points on heavy volume. The advance/declines were 6 to 1 positive. The summation index is moving up. Monday looked like the start of another breakdown and by Wednesday it is looking like the bear market is over. The S&P 500 is now back to the down trend line that began in January. It is on the cusp of breaking through. Unless we see a dramatic turnaround it is going to break the down trend. Overbought, staying that way and the volume is confirming the move higher. The idea to try the SPY December puts here is probably dead. It appears that's what the market is telling us. The NASDAQ led the way higher and that's another plus. We still have the jobs report to get past on Friday but after todays price action it may not even matter. We'll look for follow through upside tomorrow. Gold jumped another twenty bucks on the futures. The US dollar sank along with interest rates. The XAU rose 4 1/8, while GDX added 7/8. Volume was good to the upside as it has been. Plenty of resistance for GDX at the 30 level and it's at 29. So I don't see prices going much higher from here for now. GDX remains short term overbought. We'll look for some kind of consolidation here to let the overbought condition work itself off. When GDX gets to oversold again, that will be the time to try the calls there perhaps in the January option cycle. For now we'll have to wait. Mentally I'm feeling OK. The VIX dropped and is just about at 20. Still short term oversold here on the technical indicators. If the VIX stalls at 20 it could lead to a reversal in the market. But that's a big if as stocks feel like they are taking off to the upside as the sellers have disappeared. Seasonality favors higher prices as well. Still over 2 weeks left in the December option cycle but it feels as though the best entry points have passed me by. Europe and Asia were higher overnight. We'll keep an eye on tonights headlines.

Not much to report from todays price action as the Dow was up 3 points on light volume. The advance/declines were positive. The summation index is still moving up. The overall market was weaker than the Dow with the NASDAQ leading the way. The S&P 500 remains short term overbought. Perhaps the market is waiting to hear what the Fed chief has to say tomorrow. Not sure what to make of the lighter volume lately. If it's a liquidity issue we'll most likely be heading lower in the coming days. It may simply be just a lack of interest. End of the month tomorrow. Gold bounced back twenty bucks on the futures. The US dollar was higher along with interest rates. The XAU gained 3 1/4, while GDX was up 7/8. Volume was good to the upside. Some of the short term indicators for GDX have now turned back up. We cannot overlook the fact that buyers have come in for the gold shares pretty strongly in this move higher. It stands to reason that the GDX calls should be the preferred trade in this atmosphere. Finding the right entry point is imperative but GDX is still short term overbought. We will remain patient for now but at the rate it's going GDX doesn't look like it will return to the neckline of the recent reversal pattern. Mentally I'm feeling OK. The VIX was slightly lower today. Still short term oversold but not extremely so. Not sure where it goes from here. Plenty of time left in the December option cycle but we need to come up with a good idea. Europe and Asia were generally higher in last nights trade. We'll see what tomorrow brings.

Sellers returned after the long weekend as the Dow fell 497 points on light volume. The advance/declines were better than 3 to 1 negative. The summation index is still moving up. Unrest in China will be the excuse but as always the market knows more than we do. It appears as though the S&P 500 won't make it back to the longer term down trend line at around 4060. But the week is young and one day doesn't make a trend. The short term technical indicators for the S&P are still overbought but they have now rolled over. The important level to watch is 3900, which is where the up trend line from October lies. A break of that will end the rally. The Russell 2000 is already at its up trend line and could be the leader heading lower. We'll keep an eye on that. Gold was off $15 on the futures. The US dollar was up and interest rates finished little changed. The XAU dropped almost 5 points, while GDX lost 1 1/8. Volume was good to the downside. The technical picture for the GDX indicators mirrors the one for the S&P. Short term overbought but rolling over. If GDX gets back to the 26 level and is short term oversold when it gets there we'll think about trying the calls there again. 26 to 25 1/2 is the neckline of the inverse head and shoulders pattern on the GDX daily chart. Technically it isn't out of the question to return to the neckline before resuming the move upwards again. The volume for this pattern has been spot on so far which increases its validity. Might have to go out to the January options depending on how fast we get back to the neckline, if at all. Mentally I'm feeling OK. The VIX had a gap higher today and that fits with a down market. The short term indicators are oversold but now moving up. If the VIX continues to move higher we'll see a decline in stocks. After today it looks like we won't make it down to the 20 level in the VIX. But it's early in the week and we will have to wait and see. Fed speak from chairman Powell on Wednesday followed by the jobs report on Friday. So there will be plenty more for the market to digest after the Thanksgiving holiday. Europe and Asia were down to start the week. We'll keep an eye on the overnight headlines.

A mixed bag post Thanksgiving but the Dow gained 153 points on half day light volume. The advance/declines were almost 2 to 1 positive. The summation index is moving up. Both the NASDAQ and the S&P 500 were negative. The S&P 500 remains short term overbought. Gold was up almost ten bucks on the futures. The US dollar and interest rates were flat. The XAU fell 1 1/4, while GDX was off fractionally. Volume was light. The gold shares under performed the metal today but I'm not sure how much you can read into that considering it was a holiday shortened session. Mentally I'm feeling OK. The VIX didn't do much today and remains extremely short term oversold. We are still considering the SPY December puts but the premiums there remain high. However if the S&P makes it to the 4070-4100 resistance level and the volume remains light we will probably give that idea a shot. We'll go over the charts this weekend. Asia was generally lower and Europe flat to close out the week. A long holiday weekend for most so we'll be back at it on Monday.

Levitating higher as the Dow rose 95 points on light volume. The advance/declines were positive. The summation index is moving up. Once again the NASDAQ led the way higher and that's a plus for the bulls. We are getting a light volume rally in the S&P 500 moving up towards the long term resistance. Expect it to continue on the half day Friday. The stopping point should be between the 200 day moving average at 4060 and the longer term resistance around 4100. So it looks as though we'll have a shot at the SPY December puts if we are so inclined. But the market could also simply keep moving up and spell the end of the current bear phase. I still think we'll try the puts though. The S&P remains short term overbought on a daily basis. Gold was up a dozen on the futures. The US dollar was lower along with interest rates. The XAU was up 1 1/3, while GDX added 3/8. Volume remains good here to the upside. I canceled my open order for the GDX December calls as I have missed this trade. Monday was the time to make adjustments and take the position but I failed to do so. The technical picture for GDX is positive and resistance comes in at the 30 level. Sometimes you need to be nimble and adjust on the fly. The trades don't always set up as you'd like and you have to make the necessary adjustments. GDX is now medium term overbought as well but that doesn't mean that it can't go higher. Mentally I'm feeling OK. The VIX dropped today and barring something unexpected on Friday will close below the longer term support line that has ruled the bear market in stocks. This could very well be the game changer from bearish to bullish for the market. The VIX is almost at 20 and that is the line in the sand. Get there and stay below says the bull will live on. We are getting medium term oversold on the VIX. The short term picture is about as oversold as it gets. That provides some of the reasoning to attempt the SPY December puts in the near term. If the longer term resistance line for the S&P 500 holds, it should lead to a decline in the market worth taking advantage of with the SPY puts. If the market simply powers through higher, you take the loss and move on. That is my line of thinking at the moment. The Fed minutes today didn't really do much to the players that were here. We'll be off for the holiday tomorrow and then a half day session on Friday. Europe and Asia were both higher overnight. Happy Thanksgiving everyone.

Here's the holiday week rally as the Dow climbed 397 points on light volume. The advance/declines were about 3 to 1 positive. The summation index is moving up. The S&P 500 remains short term overbought and is staying that way. Such is the case in market up turns. I thought that perhaps we'd have a quiet week but the market thought otherwise. We'll see how high it can go here and hopefully up to the 4100 level so that we can try the SPY December puts. The volume is cooperating as it is holiday week light so far. We are not seeing strong leadership from the NASDAQ and that helps build our case to try the puts at resistance. Patience for now. Gold was only up a buck on the futures. The US dollar was lower along with interest rates. The gold shares followed the market higher. The XAU gained 5 1/8, while GDX was up over a buck. Volume was good to the upside as money is finding a home here. It looks like we've missed this move higher as my GDX December call order wasn't filled and won't be. I'll cancel it tomorrow most likely. It looks like GDX will not be making a retracement back to the breakout level at 25 1/2 - 26. I suppose we'll just have to wait until it gets short term oversold at some point and go from there. Mentally I'm feeling OK. The VIX moved lower and now sits at the up trend line that began a year ago. If the VIX can decidedly get through this line it would be further evidence that the decline in stocks that began in January has run its course. A break below the 20 level in the VIX would further support that theory. Hasn't happened yet but we'll be keeping a close watch here. The VIX is still short term oversold. Tomorrow is a getaway day before Thanksgiving but we do have the Fed minutes coming out. We'll see if they are a market mover. Europe and Asia were higher with the exception of the Hang Seng. We'll see how it goes tomorrow.

Just hanging around as the Dow fell 45 points on light volume. The advance/declines were negative. The summation index is moving up but slowly now. The NASDAQ led the way lower. The S&P 500 has traveled sideways for a week and remains short term overbought. This holiday week is generally a positive one for stocks so we will have to see where we go from here. I don't expect a lot of action this week as many players will be out of the office. I could be wrong. Gold fell $14 on the futures. The US dollar was higher and interest rates were flat. The XAU and GDX had fractional losses on light volume. The gold shares do continue to hold up rather well vs. the metal itself. That is a positive moving forward. I did place an open order for the GDX December calls. It will take some decline in GDX to get filled. GDX is still short term overbought. A drop to the 26 level would be the ideal scenario. Markets rarely cooperate. Mentally I'm feeling OK. The VIX was lower along with stocks. That isn't the normal relationship. The VIX remains short term oversold and I'm not sure what it has in store for us going forward. Once again it is probably best to let this week go by before committing to a SPY trade. So we'll try and remain patient for the time being. Europe and Asia were lower but the NIKK was up. We'll keep an eye on the overnight developments.

We finished the week on a positive note as the Dow added 199 points on light volume. The advance/declines were positive. The summation index continues to move higher but not at the pace we saw earlier in the rally. The S&P 500 remains short term overbought. Ideally we'd like to see a light volume rally to the resistance at around 4100. That is where the longer term down trend line that began in January lies. If we get that scenario we'll be looking to purchase the SPY December puts. There's not much to do now except wait. We roll into the December option cycle on Monday. Gold fell $11 on the futures. The US dollar was a little higher along with interest rates. The XAU rose a point, while GDX added 1/4. Volume was above average. Gold down and the gold shares up. That's a bullish divergence for the gold shares. GDX remains short term overbought. We're still hoping it makes it back to the neckline of the recent reversal pattern so that we can try the GDX calls again. May not happen. Trying to remain patient for now. Mentally I'm feeling OK. The VIX was lower which fits an up market. The short term technical indicators here have rolled over in oversold territory. This implies more gains for stocks going forward in the short term. We have a holiday week coming up. I'd expect lighter volume with an upside price bias. Many players will be out of the office and away from their screens. It is probably best to just let next week pass and go from there. We'll see if the market cooperates. The routine will remain the same though and we'll be checking the charts over the weekend. Europe up and Asia down to finish the week. It's Friday afternoon and time for a break.

A bit lower again today as the Dow lost 7 points on light volume. The advance/declines were around 2 to 1 negative. The summation index is starting to congest. Once again the overall market was weaker than the Dow. We did have a gap lower to begin the trading day and then spent the rest of the time making it back up. The short term indicators for the S&P 500 remain overbought. We'll see how expiration Friday goes tomorrow. Gold was off a dozen on the futures. The US dollar was a bit higher along with interest rates. The XAU fell 2 points, while GDX lost 3/8. Volume was average. GDX remains short term overbought but it is heading back down to the neckline for now. If it gets back to the 26 level we may have our chance for the GDX December calls. Mentally I'm feeling OK. The VIX was slightly lower today. The daily candlestick chart there looks like it wants to go lower which would be a plus for stocks. But this indicator has been a tough nut to crack for me lately. I can't say that I have any confidence when it comes to interpreting the VIX for now. We've got option expiration tomorrow and then a Thankgiving holiday shortened trading week on tap. Could be a good time to just stay on the sidelines but we'll see. Europe and Asia were generally lower last night. We'll close out the week tomorrow.

Another day of hanging around for the Dow as it dropped 39 points on lighter volume. The advance/declines were around 2 to 1 negative. The summation index is moving up. The overall market was weaker than the Dow with the NASDAQ leading the way lower. We'll see if that means something in the coming days. Retail sales came in about where expected. The S&P 500 remains short term overbought. We've reached an area of congestion here. It is either a consolidation before moving higher or a short term top. No way for me to tell right now which way it's going to go. The up trend line for the S&P remains intact. The Russell 2000 was the weakest link today and that may be more telling. Gold finished flat on the day. The US dollar was lower along with interest rates. The XAU fell a point, while GDX lost about 1/3. Volume was light. Not a lot of sellers and that's a positive for now. We're still waiting for a pullback in the gold shares to try the GDX calls again. Patience for now. Mentally I'm feeling OK. The VIX was lower today which doesn't fit again with a down market. We've come up from being extremely short term oversold. It looks to me like the VIX wants to turn back down here implying higher stock prices in the near term. But I've been off trying to figure out the VIX lately. Haven't really seen the usual positive expiration week bias in the market just yet. Not sure what the lack of volume today means going forward either. Always plenty of questions searching for answers in this game. Asia mixed and Europe lower overnight. We'll keep an eye on tonights developments.

Back and forth once again as the Dow rose 56 points on good volume. The advance/declines were 3 to 1 positive. The summation index is moving up. The overall market was stronger than the Dow with the NASDAQ leading the way. The inflation data out today came in less than expected. The S&P 500 is still short term overbought. We're still waiting for it to reach its 200 day moving average and the 4100 level. The 200 day comes in at 4075. If we get there at that point we'll decide whether trying the SPY December puts as the next trade. Right now it looks as though the market will simply keep going higher but we'll see. We also have a holiday week coming next week and we may want to stay on the sidelines until after that. Gold was up another five bucks on the futures. The US dollar was lower along with interest rates. If interest rates continue to fall that should support higher stock prices. The XAU was down 1 1/4, while GDX shed 1/4. Volume was average here. GDX remains short term overbought and we are still hoping for a move lower to attempt the GDX calls again. The market rarely cooperates with our best laid plans. For now here we'll watch and wait. Again on the interest rate theme, lower rates would likely support gold. Mentally I'm feeling OK. The VIX was up slightly today after being much higher during the session. A higher VIX with higher stock prices isn't the normal relationship but this indicator has had a mind of its own lately. Still short term oversold here. We're still in the midst of a stock market rally and we'll see how far it can go. Retail sales out tomorrow should be an excuse to go one way or the other. Staying on the sidelines and patient for the time being. Asia and Europe were higher overnight with the exception of the FTSE again. We'll see what tomorrow brings.

Some selling to begin the week as the Dow fell 211 points on good volume. The advance/declines were better than 2 to 1 negative. The summation index is moving up. Back and forth through the session as the market is due to take a rest. The NASDAQ led the way lower. Producer prices out tomorrow and that should provide a reason for buyers or sellers. The S&P 500 remains short term overbought. We'll see if the positive expiration week bias shows up. Plenty of economic data due out this week including retail sales. So we'll see if the market takes a breather or powers up to the resistance at 4100 for the S&P. Gold was up $7 on the futures. The US dollar was higher along with interest rates. The XAU and GDX had slight fractional losses on light volume. GDX remains short term overbought. We are waiting to see if it falls back to the neckline breakout of the inverse head and shoulders pattern on the daily chart. We are looking to try the calls there again on weakness. The recent price and volume pattern on GDX is implying higher prices going forward. There is stiff resistance at the 30 level though. Mentally I'm feeling OK. The VIX was higher today which fits with a down market. Still short term oversold here. Not sure where we're going on the VIX. I haven't had a good read on this indicator for a while. However as long as the summation index is moving up we'll be looking for higher stock prices moving forward for now. We also still have an intact up trend line on the S&P 500 daily chart. Waiting for the 4100 level on the S&P before deciding on the next trade there. Europe was up and Asia generally lower to begin the trading week. We'll keep an eye on tonights headlines.

Just hanging around today for the Dow as it was up 32 points on heavy volume. The advance/declines were about 2 to 1 positive. The summation index is moving up. Digesting yesterdays stunning gains was the story for the Dow. The overall market was much stronger with the NASDAQ gaining almost 2%. The S&P 500 touched the 4000 level. Getting short term overbought there but not completely just yet. Resistance comes in at 4100 for the S&P and that is where the down trend line that began the bear market lies. We'll consider the SPY puts there perhaps. A break of that line would put the bear market to rest in my view. But we haven't gotten to that point yet. However the market action lately has certainly been positive and the seasonal strength may continue. Gold added $17 on the futures. The US dollar was lower and the bond market was closed for Veterans Day. The XAU added a point and GDX was up about a dime. Volume was average. The gold shares didn't move up much with gold going higher today and that isn't bullish. GDX is short term overbought but we haven't reached the measuring objective from the recent inverse head and shoulders pattern. I did sell the GDX November calls today. The exit could have been better intra-day but I did what I could. The gain for this trade was 1070% in less than 10 days. That's not a typo and results like that are why we focus on the options. But like any finished trade it doesn't matter now and you move on. I'll be looking for a move back towards the neckline in GDX for another chance at the calls there. We are still looking at the 30 level for GDX as the target for this gold share rally. Mentally I'm trying not to feel too bad about todays mediocre exit on the GDX trade. It is entirely possible that I should have simply held on to the position into next week. Hopefully I won't dwell on it all weekend. The VIX was lower and that fits with the overall market strength. Still short term oversold as the rally lives on. If the VIX can continue its oversold condition until the S&P 500 reaches 4100, we may have a set up for the SPY puts. There is an up trend line on the weekly VIX chart at the 21 level. The VIX currently sits at 22 1/2. It was a great week for stocks and now we have options expiration week on tap. If the positive bias shows up we could get to 4100 sooner rather than later on the S&P. We'll be going over the charts this weekend in hopes of finding the next trading opportunity. Europe and Asia were higher to finish the week with the exception of the FTSE. It's Friday afternoon and time for a rest.

The market exploded to the upside today as the Dow roared ahead by 1201 points on heavy volume. Yes, twelve hundred points higher in a single session. We are more used to big point days like this going lower. The advance/declines were 8 to 1 positive. The summation index continues to move up. The inflation data came in a bit lighter than expected and we had had a gap higher at the open. The NASDAQ was the leader today and was up over 7%. There's a potential double bottom there now on the daily chart. A break above 11250 on good volume would confirm the pattern. Perhaps it will happen tomorrow. The S&P 500 up trend line remains intact and the short term indicators there have now turned back up with some room to run. One economic report doesn't normally lead to such extreme price movement. However this is why we are reminded that markets go where they want, whenever they want. In either direction. We'll be looking for higher stock prices going forward. Gold was up around $40 today as the rally here continued. The US dollar was lower and interest rates dropped. The XAU gained 7 3/8, while GDX added almost 2 points. Volume was heavy to the upside. GDX is short term overbought. My GDX November calls are showing great profits at the moment. Although there are still six days left in the November option cycle I am seriously considering taking the profit tomorrow ahead of the weekend. There is more room to go higher according to the measuring objective of the inverse head and shoulders pattern. But GDX has been moving practically straight up for about a week now. I don't want to be too greedy. Mentally I'm feeling a bit tired. The VIX had a huge drop today with the big gain in stocks. Althought short term oversold, the indicators there have turned lower in oversold territory. The VIX seems to be saying that the rally in stocks has legs. I would expect to see some follow through to the upside in the market tomorrow. We'll see. Asia was lower and Europe higher in last nights trade. We'll keep an eye on the overnight headlines.

Stocks got sold today post election as the Dow fell 646 points on good volume. The advance/declines were 4 to 1 negative. The summation index is still moving up. Maybe the market didn't like the election results that are still in limbo for some races. Perhaps we're just selling off ahead of tomorrows inflation data. The NASDAQ led the way down. The short term indicators for the S&P 500 have turned back down. Those technical indicators are now mid-range so we could go either way from here. Price is right on the short term up trend line for the S&P. So after tomorrow we'll have a better idea of where we are going in the near term. I can't say that I have a good feel one way or the other for whatever the outcome is. We'll just have to wait and see what the market has to say. Gold dropped $8 on the futures. The US dollar was higher and interest rates a bit lower. The XAU fell 3 1/8, while GDX shed 3/8. Volume remains good here. Hopefully the gold shares are simply digesting the recent strong gains before moving higher. That would be to my benefit for the current GDX call trade. Or this could be the beginning of the move back to the neckline breakout for GDX at 25 1/2. Another possibility is that the recent rise is over and we're about to move back down towards the 50 day moving average. GDX remains short term overbought but can stay that way if this is an extended rally. We'll know more after tomorrows inflation data is digested. Not sure how much longer that I'll hold on to this trade. The current technical analysis says to hold on. Mentally I'm feeling OK. The VIX was higher today and that fits with the down draft that we saw in stocks. The short term indicators have turned up but remain oversold and have plenty of room to go higher. This would suggest that we're about to see a sustained decline for stocks. Hasn't happened yet and the VIX remains below its 200 day moving average. Not sure what to expect next here but just like the market things could go either way. Asia and Europe were lower overnight. All eyes on tomorrows inflation report.

Another back and forth session with Dow gaining 333 ponts on good volume. The advance/declines were positive. The summation index is moving higher and should pass up through the zero line today. Once again stocks were led by the Dow which has been the theme of the current rally. That isn't the most positive backdrop but the bulls will take it. The short term indicators for the S&P 500 have turned back up and the near term up trend line there remains intact for now. What we really need to see is some strength from the small caps and NASDAQ to feel good about the current rise. We need to get through the election results and the consumer price information as well. Any negative surprises will derail the recent buying. Technically it's a mixed picture with the big caps overbought and the small cap indicators mid-range or lower. Never any easy answers in this game. Gold rallied again with the futures up almost $35 and now above $1700. The US dollar was lower again and interest rates dropped. The XAU was up 5 1/2, while GDX gained 1 1/2. Volume was heavy again to the upside for the gold shares as money is now finding a home there. More importantly the rise in GDX went through the neckline of the inverse head and shoulders which validates that pattern. The measuring objective is up near the 30 level. I'm not sure that I can hold on to the GDX calls that I have for that long. There's only a week and a half left in the November option cycle. GDX is also now short term overbought. The next technical expectation of the pattern is a return to the neckline. That isn't always the case but it does happen often enough to be aware of. It does give traders a chance to hop on board before continuing higher. We'll see how things play out for GDX. Needless to say the GDX calls that I have are showing a good profit. Mentally I'm feeling OK. The VIX was higher today and that doesn't coincide with an up market. This indicator hasn't made sense to me for quite a while. It is not acting in the usual fashion. The short term indicators have now turned back up but the VIX is still oversold. If the indicators continue higher we should see a near term decline in stocks. Hasn't happened yet but it is something to be aware of. Perhaps we'll see some selling tomorrow ahead of the inflation data. That's just a guess on my part. My focus will be on the gold shares. Europe was higher and Asia mixed overnight. We'll see what tomorrow brings.

The Dow continues its climb as the most watched index gained 423 points on good volume. The advance/declines were shy of 2 to 1 positive. The summation index is moving up and getting closer to the zero line. The Dow was the leader again which has been the case in this recent rally. The short term indicators for the S&P 500 are starting to move back up but not in a pronounced way. The big caps are leading the small caps and that's a sign of risk aversion. The trend remains up for now on the S&P. Here we have near term tops above tops and bottoms above bottoms for now. Waiting on Thursdays inflation data. Gold finished about flat on the futures. The US dollar was lower and interest rates moved up. We should have seen more positive price action for gold with the drop in the dollar. The XAU and GDX had slight fractional gains on good volume. We're on the cusp of breaking through the neckline of the inverse head and shoulders pattern for GDX. Perhaps we'll stall here for a bit before turning higher. Or we'll break down from here and the pattern will fail. I'm hoping for the former. My GDX November calls are still comfortably in the black. Mentally I'm feeling OK. The VIX was a bit lower today and now is extremely short term oversold. Not sure how much longer that condition can continue. But I haven't been able to figure out what's happening with the VIX for a while now. We'll just have to wait and see where we go from here. Election day tomorrow and I'm not sure it will have that much impact on stocks. Gridlock would be preferred by the market as always. Asia and Europe were both up overnight with the exception of England. We'll keep an eye on tonights developments.

It was a back and forth session for much of the day until the market decided that it wanted to go higher. The Dow gained 401 points on heavy volume. The advance/declines were better than 2 to 1 positive. The summation index is moving up. The jobs report was better than expected and we bounced around after that. One day doesn't make a rally though. The S&P 500 is still below its 50 day moving average. The short term technical indicators are around mid-range and moving sideways after todays price action. If we can continue higher from here the S&P chart would look a lot more constructive. There would also be a potential double bottom on the NASDAQ daily chart. But we will have to see where things go from here. Inflation data out next Thursday but we're a long way from that. Gold had a dramatic move to the upside as the futures soared over fifty bucks. The US dollar dropped and interest rates were mixed with little change. The XAU gained 9 1/3, while GDX was up 2 1/4. Volume was heavy to the upside. GDX is now approaching the neckline of the inverse head and shoulders pattern that comes in around 25 1/2. If we can get through the neckline on good volume GDX will be moving higher. Some of the short term indicators here have turned back up. The GDX November calls that I have are showing healthy profits but this trade isn't over yet. We all know by now markets can go either way in a hurry but the entry on this particular trade looks like it was ideal. But just like the overall market one day doesn't make a trend. Plenty to ponder over the weekend. Mentally I'm feeling pretty good after this recent trade appears to be working out. However I can't let that mood affect me as the trade still has to be managed properly. Up or down, win or lose an even keel will go a long way to producing solid results. Not always easy to do though. The VIX was lower and that fits with an up market. Still short term oversold and staying that way. Not sure how much longer that will last but sometimes it's longer than you think. Impossible to know if this is one of those times. We'll be checking the charts as usual over the weekend. A holiday next week on Friday for the bond market. Europe and Asia were higher with the exception of Japan last night to finish the week. It's Friday afternoon and time for a break.

Some follow through downside today as the Dow dropped 146 points on good volume. The advance/declines were negative. The summation index is still moving up. We sold off hard early today and then spent the rest of the session moving sideways. Once again the NASDAQ led the way down. We'll get the jobs report tomorrow and I'm not sure that will turn things around. The short term indicators for the major averages have turned down and they're not oversold yet. Some of the indices are holding up better than others but the NASDAQ lagging it certainly isn't a very bullish backdrop. Selling off into the close is not a positive. So we'll see how things shake out tomorrow. Gold fell $15 on the futures. The US dollar was higher along with interest rates. The XAU dropped 2 1/4, while GDX shed over 1/2. Volume was good to the downside. I did end up purchasing some GDX November calls. They are at break even. It looks like a decent entry if we can get some kind of bounce from here in GDX. Not completely short term oversold yet here although one of the hourly chart indicators says it's time to buy. I do not plan on holding this trade for long depending on how it goes from here. The breakdown in both NEM and GOLD is not encouraging. However an oversold bounce is not out of the question. Mentally I'm feeling OK. The VIX once again was lower with a decline in prices. This doesn't fit the normal pattern for this indicator. I don't know why it's acting strangely lately. The VIX remains oversold yet stocks are going lower. Not sure what to expect with the VIX going forward. So we are now in the next trade and I'm not really sure if this was a good idea. The fundamentals for gold remain in place as negative. The reverse head and shoulders pattern for GDX appears to be forming a second right shoulder. But if GDX doesn't hold in here, the pattern will fail and this trade will probably end up a loser. So what happens with GDX tomorrow should be pretty important for the outcome of this trade. We'll see. Europe and Asia were lower last night. We'll close out the trading week tomorrow.

Back to the downside after the Fed as the Dow fell 505 points on heavy volume. The advance/declines were bettern than 3 to 1 negative. The summation index is moving higher. We got another signal last night for a big move from the McClellan oscillator and we got it today. The Fed raised rates as expected but the market didn't like what it heard after the fact. The NASDAQ led the way lower and has been under performing for quite a while. Short term indicators for all the major averages have turned down with still more room to move lower. The NASDAQ looks like it wants to test the October lows. Other indices, not so much. The short term up trend line on the S&P daily chart has been broken. It looks like we'll be heading lower in the short term. Gold fell ten bucks on the futures. The US dollar was higher along with interest rates. The XAU lost 6 1/4, while GDX dropped 1 3/8. Volume was heavy to the downside for the gold shares. They were underperforming the metal today as they chased the overall market lower. My open order for the GDX November calls wasn't hit. Not sure if this is the best idea after today. GDX could be forming another right shoulder on the inverse head and shoulders pattern. Or not. NEM broke its near term support today and is not completely oversold yet. Barrack Gold reports its earnings tomorrow and is close to breaking support as well. I'll have to look things over again tonight and decide what to do. Mentally I'm feeling OK. The VIX once again barely moved and we had a huge decline in stocks. This makes no sense at all. My concern is that if the VIX does start to go higher here we are going to see quite a decline in the market. It is another reason to perhaps take a step back here when it comes to the option trading. But you don't make any money on the sidelines. However you don't lose any either. Something weird is happening with the VIX but I don't know what it is. Plenty to ponder tonight to decide what to do. Asia was generally higher and Europe lower overnight. We'll keep an eye on tonights developments.

We had a one day reversal to the downside today as the market opened higher and closed lower. The Dow lost 79 points on average volume. The advance/declines were positive. The summation index continues higher. Waiting on the Fed. The NASDAQ is still the leader to the downside but not with the gusto that we have seen in the previous couple of months. The tone of the market has changed with the recent upswing. The S&P 500 continues to be short term overbought. We'll get the Fed tomorrow and we'll see how the market reacts to that. Then we'll have to get through the employment report on Friday. The trend is up as we have highs above previous highs and an up trend line in place for the S&P. Resistance is at 4100. Gold was up ten bucks on the futures. The US dollar finished little changed and interest rates were slightly higher. The XAU gained 2 1/8, while GDX was up 1/2. Volume was average. At this rate my open order for the GDX November calls won't get filled. Might have to adjust it again. Mentally I'm feeling OK. The VIX was a bit lower today which doesn't fit with a down market. Oversold and staying that way. I don't want to guess when the VIX will turn back up as it can stay oversold for extended amounts of time during rallies. I do think however that each passing day gets us closer to a move higher in the VIX. That means some selling for stocks and more than the little dips we've seen during the recent move higher. For now it's all systems go for more upside but that could change tomorrow. We'll see. Asia and Europe were both up overnight. We'll see what tomorrow brings.