What was supposed to be a quiet week was anything but that today as the Dow fell 333 points on light volume. The advance/declines were around 5 to 1 negative. The summation index is back to moving down. Which could turn into a real problem considering how close it is to the zero line. The recent three day rally on light volume could have been a snap back to the up trend line that was broken in the S&P. We had a gap lower at the open but the S&P 500 did make it up from the lows of the session and bounced off of its 50 day moving average. The short term indicators here are beginning to roll over though. Todays decline was led by the NASDAQ which lost 1 1/2%. So we are now left with more questions than answers going forward. Gold dropped $22 on the futures. The US dollar was slightly lower and interest rates were higher for the most part. The XAU fell a little over a point, while GDX shed around 1/4. Volume was light. GDX is short term oversold and staying there which is never a good sign. I'm still in the camp of waiting for GDX to return to its longer term up trend line at around 29-30. But as lawys things could change. Mentally I'm feeling OK. The VIX was higher today but well off the highs for the session. This leads me to perhaps believe that today was a one off for the stock market. The short term indicators on the VIX are starting to move sideways, not up. So we have to be careful not to get too bearish even though the summation index is near the zero line. There will be plenty of work to do and charts to consider over the weekend. More of the traders will return next week even though it is another holiday week for New Years day. So hopefully we can get a better idea of where things are going. Europe and Asia finished higher to close out the week. It's Friday afternoon and time for a break.

Quiet post-holiday trading as the Dow rose 28 points on light volume. The advance/declines were positive. The summation index is starting to try and turn around. The Dow was the leader today. Both the NASDAQ and S&P 500 posted tiny losses. The market could be in a wait until next year mode. We can't force any trades here. Not yet short term overbought on the S&P but the indicators are beginning to stall. I'm remaining on the sidelines for now. Gold was up almost twenty bucks on the futures. The US dollar was a bit lower and interest rates finished flat. The XAU and GDX had slight fractional moves higher on very light volume. GDX remains short term oversold and in a sideways pattern for now. Mentally I'm feeling OK. The VIX was higher today. Short term oversold on some of the indicators here but not completely so. Not sure exactly what's next for the VIX. One trading day left in a holiday week with players away from the office. Not a time for any kind of bold action in my mind. I'll simply wait it out. Asia was slightly higher and Europe mixed overnight. We'll close out the week tomorrow.

Santa Claus is coming to town as the Dow rallied 390 points on expected light volume for the half day session. The advance/declines were 3 to 1 positive. The summation index is still trending lower. The NASDAQ led the way again and that's a plus. The short term indicators for the S&P 500 are moving up. It seems like last weeks steep decline has already been forgotten. At this rate the S&P will hit new all time highs before the new year. Gold was up $5 on the futures. The US dollar was slightly higher and interest rates finished flat. The XAU and GDX had slight moves one way or the other on very light volume. GDX remains short term oversold. Mentally I'm feeling OK. The VIX moved down and is now below both its 50 and 200 day moving averages. Not yet oversold on the short term indicators here. Markets will be closed tomorrow and probably thinly traded for the rest of this week. Europe and Asia finished mixed. Merry Christmas.

The Santa Claus rally appears to have started a day early as the Dow gained 66 points on light volume. The advance/declines were about even. The summation index is still moving lower. The NASDAQ led the way up and that's a plus for the bulls. The market is in holiday mode as many players are not at their desks. I expect things will be biased to the upside for the time being but we'll see. The short term indicators for the S&P 500 have turned up. Some are at mid-range and others remain on the oversold side. We've just rolled into the December option cycle so premiums are high. I'll be on hold until next year for the next trade unless a really good signal appears before years end. Gold was off twenty bucks on the futures. The US dollar was higher along with interest rates. The XAU and GDX had very slight fractional moves higher on light volume. GDX remains short term oversold. Is it possible that GDX is forming a short term bottom for an attempt at the January calls? Perhaps. Mentally I'm feeling OK. The VIX was down today and the short term indicators continue to move lower. It closed right at the 50 day moving average. I'm guessing the VIX continues lower as stocks go higher in the near term. Tomorrow markets close early on Christmas Eve before a day off on Wednesday. So you can see that there is no hurry to put on a trade. Sometimes you just have to be patient in the game and I believe that right now is one of those times. Asia was generally higher and Europe mixed to start the week. I'll keep an eye on any overnight developments.

Finally a bounce as the Dow gained 498 points on expiration heavy volume. The advance/declines were around 3 to 1 positive. The summation index is still heading down and approaching the zero line. We got a signal from the McClellan oscillator last night for a big move within the next two sessions and we got that move today. The inflation data came in lighter than expected and traders breathed a sigh of relief. The question now is this just a snap back to the up trend line just violated in the S&P 500 before we move lower or not? I'm inclined to believe that we've seen the worst for this move down as some of our technical indicators are at levels associated with bottoms. That doesn't mean we won't get some backing and filling or even a retest of the recent lows. However the close proximity to the zero line on the summation index is a concern. I do think that it will hold up this time around and an unraveling of the market is not going to happen. I could be wrong. We've got a holiday week on tap and things should settle down. The Santa Claus rally will also be due. The market will have a say in whether our projections are correct as time moves on. Gold was up $35 on the futures. The US dollar was lower along with interest rates. The XAU was up 1 3/4, while GDX rose 1/3. Volume here was good. No GDX trades in mind right now. Mentally I'm feeling OK. The VIX sank today and is now back below the 20 level. The short term indicators here have rolled over with plenty of room to go lower. The VIX is another indicator that is pointing to the decline being over as it doesn't stay overbought for long. My guess is that we will see higher prices or at least sideways price action for stock prices in the near term. Plenty of things to look at over the weekend but I'll probably wait until next year for the next trade. Holiday mode approaching. It has been quite a volatile week. Europe and Asia were slightly lower to close out the week overseas. It's Friday afternoon and time for a break.

Stabilization was the best we could do today as the Dow finally broke its losing streak by finishing ahead 15 points on heavy volume again. The advance/declines were negative. The summation index is heading down with conviction and is now approaching the zero line. This could spell even more trouble as the market simply falls apart when crossing the zero line on the summation index. It is a rare event. We can say that the market already fell apart yesterday. We've got option expiration tomorrow as well so things will be volatile. Throw in the inflation data before the market opens and you see what kind of day it could be. We are still long overdue for some kind of bounce but I've been saying that for days. The NASDAQ and S&P 500 had slight losses ahead of tomorrows fireworks. The short term indicators for the S&P are still pointing down with room to go before hitting oversold. I'm not sure what will happen next but we certainly can't rule anything out. I'm on the sidelines probably for the rest of the year when it comes to the option trading. Too many mistakes in the second half of the year has cut into my profits. Gold dropped $40 on the futures. The US dollar was up and interest rates were generally higher. The XAU was off a point and GDX slipped over 1/8. Volume was average. Short term oversold for GDX and staying that way for now. The fundamental picture for gold has turned negative at this point. If and when it gets to the 30 level is where we'll take a look at the GDX calls again. Mentally I'm doing OK considering yesterdays trading debacle. The VIX was lower today as the the market didn't collapse again. Still short term overbought here. Not sure what to expect next with the VIX but it usually doesn't stay overbought for an extended period of time. However we are in a crazy moment for the markets so anything goes here as well. If we can get through tomorrow we have a holiday week coming up when things usually settle down. Europe and Asia were down as traders are heading for the exits. We'll close out the trading week tomorrow.

The Fed cut rates as expected but the market didn't care and got clobbered. The Dow fell over a thousand points on heavy volume. 1123 points was the final total. The advance/declines were 13 to 1 negative. The summation index is falling lower. We knew that there was something fishy going on but we didn't know how much it would stink. Ten days in a row now negative on the Dow and I cannot remember that happening in my trading life. The S&P 500 has broken its up trend line from August and closed below its 50 day moving average. The short term indicators here are moving down with room to go. Not yet short term oversold but it appears that's where it is headed. I was still looking for an oversold bounce that never came. When the S&P reached its up trend line, I purchased some of the December calls. That was another mistake as the market was in free fall which I did not acknowledge even though it was staring me right in the face. Realizing that this trade was a mistake, I got out but not before incurring yet another loss. A negative 75% on the trade but thankfully there wasn't a lot of money involved. The S&P 500 shed over 175 points. The NASDAQ dropped 3 1/2%. They are catching up with the other falling indices that are already oversold and staying that way. The original idea of the SPY puts was a valid one. Gold lost over fifty bucks. The US dollar jumped up along with interest rates. The XAU fell 6 3/4, while GDX lost 1 2/3. Volume was good to the downside. GDX is short term oversold and staying that way. The longer term up trend line here comes in at 30 and that's much lower from here. Mentally I'm feeling frustrated once again as I could not perform properly when it came to todays trade. Sitting on the sidelines or going with the puts was the correct path. The short term trades seem to be my downfall so maybe I will have to eliminate them in the coming new year. The warning signs that something different was going on in the market was there but I failed to heed the signals. The continued negative breadth finally came to fruition. The VIX had a huge move higher and closed above 27. Short term overbought on the VIX now. Above the 20 level and that will lead to more volatility. I certainly did not see that coming. Two days left in the December option cycle and inflation data out on Friday. I'll just sit back and observe at this point. Asia was mixed and Europe flat overnight. I'd expect some selling to occur overseas tonight. Interesting times.

Once again sellers had the upper hand as the Dow fell 267 points on good volume. The advance/declines were around 3 to 1 negative. The summation index is moving lower. A last half hour bounce kept things from being worse. Something weird is going on here for sure as the Dow has lost ground for nine days in a row while the S&P 500 has traded sideways. The Russell 2000 has been in a steady decline along with the New York Composite. But the NASDAQ has had a slight rise. Oversold on some indices without a bounce and that can be dangerous as in even steeper falling prices. But I am favoring the SPY December calls for a short term trade and might purchase some tomorrow ahead of the Fed. Today in fact may have been the time to get them. The short term indicators for the S&P have rolled over with plenty of room to move lower. But I do believe that some kind of upside bounce is long overdue and we should see one before option expiration on Friday. I could be wrong. I might just stay on the sidelines as well because my track record with the short term trades is pretty poor. Gold was off $9 on the futures. The US dollar was a bit higher and interest rates finished flat again. The XAU lost 1 1/8 and GDX fell 1/4. Volume was light. GDX finished below its 200 day moving average. Mentally I'm feeling OK. The VIX was higher today and that fits a down market. The short term indicators are rising but are not yet short term overbought. So there could be a bit more selling before we see some upside according to the VIX. Which would make it hard to purchase the SPY calls with only three days left in the December option cycle. So you can see the predicament here. However I can always wait for the market to settle down as well. I'll ponder what to do overnight. Needless to say the Fed tomorrow will get things moving one way or the other. Asia and Europe were lower as perhaps we're seeing a worldwide retreat at the moment. We'll see if we have a wild Wednesday on the agenda.

Still a mixed picture for stocks as the Dow fell yet again to the tune of 110 points on good volume. The advance/declines were negative. The summation index is heading down. The overall market did better than the Dow with both the NASDAQ and S&P 500 sporting gains on the day. The gains would of been better but we had a last half hour drop. Eight days in a row lower for the Dow and it is very oversold on a short term basis. There will be a decent bounce here and soon. But we don't know if it will be just an oversold bounce or an actual bottom. The market behavior is even more puzzling that usual right now. Plus we have options expiration week, the Fed on Wednesday and inflation data on expiration Friday to deal with. The trading will have to be nimble if attempted. I'm not sure what to do at this point so I might have to remain on the sidelines. I did favor the SPY puts but now I'm thinking perhaps to try and catch the bounce that is overdue. The trading is never easy. Gold was off $5 on the futures. The US dollar was a bit lower and interest rates finished flat. The XAU dropped 1 1/2, while GDX shed 1/4. Volume was pretty light. GDX has made it back to its 200 day moving average. It is also on the lower Bollinger band. Not all of its short term indicators are oversold. This would be the spot to try the GDX calls but I'm not going to do it. Perhaps going out to the January option cycle would be a better idea. Mentally I'm feeling OK. The VIX was up today which doesn't fit with an overall higher market. The short term indicators have ramped up with room to go. Not sure what's going on with the VIX. So here we are with 4 days left in the December option cycle. Retail sales out tomorrow which should get things going in the morning. Waiting on the Fed and the expected 1/4 point rate reduction Wednesday. The market reaction to that will be the key for the rest of that session and perhaps longer. I'll reconsider what to do tonight. Asia and Europe were lower to begin the week. We'll keep an eye on the overnight developments.

We had a gap higher at the open but sellers continue to be in charge as the Dow fell 86 points on light volume. The advance/declines were 2 to 1 negative. The summation index is moving down. The NASDAQ had a slight gain and the S&P 500 finished flat. Looks like it is too late for the SPY December puts but we'll see. It has been a mixed picture for stocks lately. Over the past week or so the Dow, New York Composite and the Russell 2000 have dropped back toward their 50 day moving averages. They are short term oversold. Seven days in a row lower for the Dow. However the S&P 500 and NASDAQ have just moved sideways. They remains short term overbought. Something has to give soon. Not sure if it will be a rally to even more overbought levels for the NASDAQ and S&P. Or perhaps they will actively join in on the decline that we've seen elsewhere. The fact that the Dow can't even get a bounce from oversold levels is a concern. Gold dropped over forty dollars today. The US dollar finished flat and interest rates continue to rise. The XAU fell 3 2/3 and GDX dropped a point. Volume was about average. The short term indicators for GDX are pointing down and it is almost back to the 200 day moving average again. Recent volatility in this index makes it hard to trade right now. Mentally I'm feeling OK. The VIX finished a bit lower today with a mixed market. The short term indicators here are trending higher but not with conviction. Not sure what to expect with the VIX next. We've got the Fed coming in next week along with options expiration so it should be interesting. Short term trades will be the only choice with little time to go in the December option cycle. I'll be going over the charts this weekend to try and come up with a game plan for the SPY options next week. Europe and Asia wre both lower on Friday with the exception of India. It's Friday afternoon and time for a break.

Now it appears that sellers have the upper hand as the Dow fell for the sixth day in a row. The most watched index dropped 234 points on light volume. The advance/declines were shy of 3 to 1 negative. The summation index is moving down. The NASDAQ led the way lower. Although it wasn't deep sell off by any means the inability to have more than a one day rally is concerning for the bulls. A bounce at the least is due for the Dow. The S&P 500 was off over thirty points. The short term indicators here have rolled over. It now looks like the SPY put trade has been missed. Unless we see some upside heading into the Fed meeting next week I may have to just continue to be on the sidelines. Gold slumped over fifty bucks today as the price movement here lately has been big both ways. The US dollar was higher along with interest rates again. The XAU lost 5 3/4, while GDX shed 1 3/8. Volume was average. Staying away from GDX has probably been a good thing with the recent volatility there being short and sweet both ways. Mentally I'm feeling OK. The VIX was up today but we didn't see the short term indicators move that much. Not sure what that means. Stocks closed on their lows today and that isn't a positive sign. Running out of time in the December option cycle. The most we can hope for now is a short term trade and that isn't usually where my best efforts occur. Europe finished relatively unchanged and Asia was higher with the exception of India. We'll close out the trading week tomorrow.

The inflation data came in where expected and the overall market took off to the upside. The Dow however did not gain any steam as it fell 99 points on good volume. The advance/declines were slightly positive. The summation index is still trending lower. The NASDAQ led the way higher by far and that is a plus for the bulls. The S&P 500 had a good day and the short term indicators here have turned up. The SPY December put trade is still on the radar but it will have to wait until next week if things set up for it. Gold was up over $30 on the futures. The US dollar was higher along with interest rates. The gold shares rallied this time around. The XAU gained 5 1/3, while GDX was up over a point. Volume was average. GDX has made it back to the 50 day moving average. It looks like I've missed out on a GDX call trade again but there wasn't exactly a clear signal. Mentally I'm feeling OK. The VIX was lower and that fits the overall market rally. The short term indicators here remain oversold. Asia was mixed and Europe higher overnight. More inflation data due tomorrow. I'll keep an eye on tonights developments.

More selling ahead of tomorrows inflation data as the Dow fell 154 points on average volume. The advance/declines were negative. The summation index is trending lower. A lack of buyers as the market plays a waiting game. The Dow led the way lower as it has been lately. That isn't the most bearish scenario. If we continue lower tomorrow our SPY put trade idea will have been missed. If we move higher perhaps we can try it before option expiration. The short term indicators for the S&P 500 have rolled over. I have no idea one way or the other about the inflation data out tomorrow. The market reaction will be the key. Technically speaking the S&P remains short term overbought but could be in the process of rolling over. Gold jumped over thirty bucks on the futures. The US dollar was higher and interest rates were up a bit. The XAU and GDX had slight fractional moves one way or the other on light volume. Gold up and the gold shares going nowhere isn't bullish. The short term indicators for GDX are now mid-range. I still don't have any GDX trades in mind for now. Mentally I'm feeling OK. The VIX finished flat today as its short term indicators headed sideways. It will be interesting to see what happens here tomorrow. Asia was generally higher and Europe lower overnight. We'll see how tomorrow goes.

Selling to start the week as the Dow fell 240 points on good volume. The advance/declines were negative. The summation index is trending lower but not with conviction. The S&P 500 was down but remains short term overbought. The short term indicators have turned down though. Have we missed the chance for the SPY December puts? Perhaps. We will know for sure after the inflation data on Wednesday and the market reaction to it. Patience for now. Gold was up twenty bucks as geo-political tensions rose over the weekend. The US dollar was slightly higher along with interest rates. The XAU was up 4 1/2, while GDX jumped 1 1/8. Volume was good to the upside although the gold shares were off of their best levels for the day. Some of the short term indicators for GDX turned back up. Not sure now if it's headed back to the 200 day moving average. Mentally I'm feeling a bit frustrated if I've missed the SPY put trade. However I can't let that affect me going forward. I do still have another trade idea for the Fed meeting next week but that is pretty risky as there will be only three days left in the December option cycle. The VIX was higher today and that fits a down market. The short term indicators here have turned up. If the VIX continues higher, the market should keep heading lower and the SPY put trade will be missed. Hasn't happened yet but now that possiblity exists. Asia and Europe were mixed to begin the week. We'll see if we get follow through selling tomorrow.

Todays employment data came in where expected but the markets continued to be mixed. The Dow fell 123 points on average volume. The advance/declines were negative. The summation index is turning lower but not with conviction. Once again the NASDAQ led thw way up and that remains a positive going forward. The S&P 500 was higher as well. It still remains short term overbought. Lately whatever selling we do see has been met with buyers. I canceled my open order for the SPY December puts. I'll probably try this idea again at some point next week. Gold was up $6 on the futures. The US dollar was higher and interest rates dipped. The XAU lost almost 3 points and GDX fell 2/3. Volume was light. The short term indicators for GDX have rolled back down with room to go. It appears to headed back to the 200 day moving average at 36. Mentally I'm feeling OK. The VIX was lower today. The short term indicators remain deeply oversold. Not sure how much longer that condition can go on but trying to predict when it will end is a guessing game. Our recent sell signals from some of our other indicators simply haven't worked. However I'm still in the camp that the SPY December puts will work at some point before option expiration in two weeks. I'll be checking the charts as usual this weekend. Asia and Europe finished the week mixed. It's Friday afternoon and time for a break.

Overall some minor selling ahead of tomorrows jobs report as the Dow fell 248 points on average volume. The advance/declines were negative. The summation index is beginning to stall. The Dow led the way lower and that isn't the worst scenario. Today may or may not be a near term top but I believe that we are getting close to it. I did place an order for the SPY Decmeber puts overnight but it was not filled. I'm leaving the order out there. If we get a rally off of the employment report it might get filled. The short term indicators for the S&P 500 remain overbought. Gold dropped $22 on the futures today. The US dollar was lower and interest rates finished flat. The XAU was off 7/8 and GDX finished flat. Volume was pretty light again. The short term indicators here are above mid-range and trending sideways. Not sure what the next move for the gold shares is so we'll stay on the sidelines here. Mentally I'm feeling OK. The VIX was flat and remains short term oversold. The Bollinger bands are now beginning to flatten out. Not sure exactly what to expect from this indicator either. There is still plenty of time left in the December option cycle for a trade. I do think that the SPY puts will work in the remaining timeframe but the entry has to be good. Whether or not I can figure it out remains the question. I do not think that the market will continue to rally for the next two weeks but I could be wrong. Europe and Asia were up last night with the exception of the Hang Seng. We'll see how the markets react to the jobs data tomorrow.

The market continues to move higher as the Dow gained 308 points on average volume. The advance/declines were about even. The summation index is still trending higher. The NASDAQ continues to lead the way. New all time closing highs for the big three of the Dow, S&P 500 along with the NASDAQ. No overhead resistance. The S&P 500 remains short term overbought and stayng that way. I wonder how much longer that this can go on but it is usually longer than you think. The S&P is now up against its upper Bollinger band. I do still want to try the SPY December puts at some point. However it is hard to step in front of the current rally. Gold rose $6 on the futures. The US dollar finished flat and interest rates slipped. The XAU fell a point while GDX was barely lower. Volume was extremely light for the gold shares. No interest here despite plenty of geo-political turmoil around the world. Still no GDX trades in mind at the moment. Mentally I'm feeling OK. The VIX was a little higher despite the rise in stocks which doesn't fit. The last time this occurred there was a drop in the market the follwong day. Getting very close to the lower Bollinger band on the VIX. It also appears that the short term indicators are trying to turn around. Still waiting on Fridays employment report so tomorrow could be a wait and see affair for the market. We'll see. Asia was mixed and Europe generally higher overnight. I'll keep an eye on the overnight headlines.

More of the same today as the Dow underperformed and the overall market trended sideways. The most watched index fell 76 points on average volume. The advance/declines were negative. The summation index continues to trend higher. The NASDAQ once again led the way up and that's a plus. The S&P 500 had a slight gain and remains short term oversold. I again placed an order for the SPY December puts but it wasn't filled and I canceled it. Seems like we are in a waiting game for the next catalyst on Friday which would be the jobs report. Gold was up $5 on the futures. The US dollar was a little lower and interest rates bumped up. The XAU jumped 4 1/2, while GDX added 7/8. Volume was light. Not sure what's going on here. The short term indicators for GDX have now turned up with room to go. No GDX trades in mind right now. Mentally I'm feeling OK. The VIX finished unchanged today. The short term indicators remain oversold however the Bollinger bands are beginning to contract. Trying to remain patient for the next trade which I believe will be the SPY puts. The timing, as always, needs to be spot on. If we continue to trend higher into the close on Thursday then I may try those SPY December puts. However there seems to be plenty of liquidity around for now so that idea is not set in stone. Both Europe and Asia were higher again in the overnight trade. We'll see what tomorrow brings.

Hanging around on a Monday following a long weekend as the Dow was off 128 points on good volume. The advance/declines were negative. The summation index continues higher. Beginning of a new month and waiting on Fridays employment data. The overall market was positive with the NASDAQ leading the way by far. That is a plus for the bulls. A new all time closing high for the NASDAQ as well. The S&P 500 remains short term overbought. I did place an order for the SPY December puts overnight but it wasn't filled. Might try again tomorrow. The S&P is both short and medium term overbought. But that doesn't mean it can't stay that way. However we do see some sell signals beginning to show up on some of our other indicators. The SPY put trade idea is not without risk but aren't they all? Gold was off twenty bucks on the futures. The US dollar was higher and interest rates finished flat. The XAU fell 2 1/2 and GDX lost 7/8. Volume was light. The short term indicators for GDX are still at the mid-range level but are trying to turn down. No GDX trades in mind right now. Mentally I'm feeling OK. The VIX is still moving lower and remains short term oversold. It has remained oversold for a while and that conditon won't last forever. For me, it's another vote on the side of trying the index puts. We'll see. Asia and Europe were higher in last nights trade. I'll keep an eye on the overnight headlines.

It was the usual post Thanksgiving rally as the Dow rose 188 points on very light volume. The advance/declines were 2 to 1 positive. The summation index is moving higher. The NASDAQ led the way up and that's a plus. We did have a drop in the last five minutes or the numbers would have been even higher. The S&P 500 remains short term overbought. I may try the SPY December puts on Monday. Gold was up $10 on the futures. The US dollar was lower and interest rates dipped. The XAU and GDX had fractional gains on very light volume. No GDX trades for now. Mentally I'm feeling OK. The VIX moved lower and is still short term oversold. Not sure how low the VIX will go here but it is a positive for the market at this point. Europe and Asia were higher with the exception of Japan. We'll check the charts in the next couple of days and take it from there. It's Friday and time for a rest.

Some pre-holiday selling today as the Dow fell 138 points on light volume. The advance/declines were positive. The summation index is still trending up. Inflation data came in where expected. I did place an order for the SPY December puts overnight but it wasn't filled. I have since canceled it. The NASDAQ led the way lower and that is not a positive. The short term indicators for the S&P are starting to curl down but remain in overbought territory. A holiday tomorrow followed but a shortened trading session on Friday. I will probably revisit the SPY put idea at some point next week. Gold was up $17 on the futures. The US dollar was lower and interest rates ticked down. The XAU and GDX had slight fractional moves one way or the other on light volume. Once again gold itself was higher and the gold shares didn't do anything. We might have to pass on trading GDX for now. Still mid-range for the short term indicators there. Mentally I'm feeling OK. The VIX finished little changed and remains short term oversold. Perhaps a double bottom is forming there but we won't know for sure as the VIX could simply continue to move lower. Nothing left to do now except enjoy the long holiday weekend. Asia up with the exception of Japan and Europe lower with the exception of the FTSE. Happy Thankgiving everyone.

Continuing higher as the Dow gained 123 points on light volume. The advance/declines were around 2 to 1 negative. The summation index is moving up. The overall market fared better than the Dow and that's a plus. What isn't a plus is the negative breadth numbers. However the market keeps plowing ahead and we must respect price. New all time closing highs for the Dow and the S&P 500. I do still want to try the SPY December puts at some point. The S&P 500 remains short term overbought with a little room left to the upside for the indicators. Inflation data out tomorrow and that should provide some movement early in the day. However it is right before the Thanksgiving holiday and I expect thin trading. If we continue to move up into the close on a shortened Friday session, I may try those SPY puts. Gold was up $13 on the futures. The US dollar finished slightly higher and interest rates were flat. The XAU and GDX had slight fractional moves higher on very light volume. The short term indicators for GDX are at mid-range. Not sure where gold goes next as it has turned into a headline driven commodity for now. Mentally I'm feeling OK. The VIX was lower and remains short term oversold. One of the reasons against taking on a put trade here is the low level of the VIX with room to go lower. Not to mention that this indicator remains comfortably below both the 50 and 200 day moving averages. But we do have some other of our indicators that are saying the puts are the way to go at least on a short term basis if we continue higher into the weekend. The trading is never easy. We'll see how things go tomorrow and take it from there. Europe and Asia finished lower on Trump tariff talk. I'll keep an eye on the overnight developments.

The day began with a gap to the upside but then the market went sideways to lower for the rest of the session. But it only moved lower from a much higher position as the Dow climbed 433 points on very heavy volume. Looks like traders were getting their positions done today before heading out for the rest of the week. The advance/declines were 3 to 1 positive. The summation index is moving up. Once again the Dow was the outperformer. The S&P 500 remains short term overbought but not at extremes. We'll get inflation data on Wednesday ahead of the holiday. I'm leaning towards the SPY December puts here but the timing as always will be the key. Gold got crushed today as the futures fell $85. The US dollar was lower and interst rates dropped. The XAU lost 4 1/4 and GDX shed 1 1/4. Volume was good to the downside. On the sidelines with regards to the gold share options for now. Not exactly sure what is going on with respedt to gold right now. The usual inter-market relationships din't work today. Mentally I'm feeling OK. The VIX was lower today which fits the upside in stocks. It remains oversold but not completely so. I was expecting a quiet week for the market but we certainly didn't see that today. Asia was mixed and Europe slightly higher overnight. We'll see what tomorrow brings.

Sideways to higher for the overall market but the Dow climbed 445 points to a new closing high on average volume. The advance/declines were 3 to 1 positive. The summation index is heading back up. Both the NASDAQ along with the S&P 500 posted gains but not as much as the Dow. The short term indicators for the S&P continue to grind higher and are not yet overbought. A holiday week coming up and that is usually positive at this time of the year. No SPY option trades in mind at the moment. Gold was up $33 on the futures to finish its best week in a while. The US dollar was higher and interest rates ended flat. The XAU and GDX had slight fractional gains on light volume. Once again the gold shares did not follow gold higher. The short term indicators for GDX appear to be beginning to stall. Mentally I'm feeling OK. The VIX was lower today which fits with an up market. The short term indicators are rolling over here which implies more near term gains for stocks. The VIX is also back below its 200 day moving average. It was a good week for stocks following the previous poor showing a week earlier. It looks like the market can build on that next week. I'd expect a quiet week with a holiday on Thursday but you never know. I'll be checking the charts over the weekend as usual. Europe was higher and Asia mixed to finish out the week. It's Friday afternoon and time for a break.

We got the big move anticipated from the McClellan oscillator signal today as the Dow climbed 461 points on average volume. The advance/declines were better than 3 to 1 positive. The summation index is trying to turn around. The Dow led the way today and this isn't the most bullish scenario. The S&P 500 had a good day but the NASDAQ was barely positive. The NVDA earnings were a disappointment. The short term indicators for the S&P are edging higher. New all time highs on the way? Maybe but we would like to see the summation index turn around first. We'll see what happens tomorrow ahead of a holiday week for the US. Gold was up another twenty bucks on the futures. The US dollar was higher and interest rates were up just a bit. The XAU was up 1 3/4, while GDX added 3/8. Volume was average. A nice bounce for the gold shares so far this week. A V bottom? We'll know in the coming sessions. Mentally I'm feeling OK. The VIX was lower today. The short term indicators are still trending on an upward slope. My guess is that they will turn back down and the market will continue higher in the near term. But markets go where they want. Still below the 50 day moving average on the VIX. Still on the sidelines with regards to the next trade as premiums are high and Thanksgiving week is coming up. I expect that many players will take some time off. Patience for now. Asia lower and Europe higher overnight. We'll close out the trading week tomorrow.

Still a mixed picture on Wall street as the Dow gained 139 points on light volume. The advance/declines were negative. The summation index is moving down. The Dow outperformed as the NASDAQ posted a small loss and the S&P 500 finished flat. It was an up and down trading session for most of the day. We got a signal last night for a big move within the next two days from the McClellan oscillator. We'll see if that pans out tomorrow. I still think prices are heading higher from here. Perhaps the earnings report from NVDA after the bell can get things going. The short term indicators for the S&P are still trying to turn back up. Gold was up another twenty bucks today. The US dollar was higher and interest rates ticked up. The XAU and GDX had fractional losses on light volume. The gold shares did not follow the precious metal higher today. That isn't a bullish development. The short term indicators for GDX are now mid-range. Mentally I'm feeling OK. The VIX finished higher today which doesn't exactly fit with the market closing prices today. The short term indicators are slowly moving up. Not sure what to expect next from this indicator but it's still below the 50 day moving average. It seems like the market is trying to make up its mind what to do here. Europe finished lower and Asia was up with the exception of Japan. I'll keep an eye on the overnight headlines.

Once again a mixed bag as the Dow was down and the overall market moved higher. The most watched index fell 120 points on average volume. The advance/declines were slightly negative. The summation index is moving lower. Both the NASDAQ and S&P 500 had one day upside reversals as they gapped lower at the open only to then move higher the rest of the session. The short term indicators for the S&P are trying to turn back up from mid-range levels. I think that they will be successful as I'm still looking for more upside in the near term for stocks. I could be wrong but we'll see in the coming days. Gold was up another $23 on the futures. The US dollar finished flat and interest rates were slightly lower. The XAU rose 3 points and GDX was up 7/8. Volume was average. The short term indicators for GDX have turned up with plenty of room to go. Have we missed a GDX call trade here? Perhaps. GDX did break above its short term down trend line today. I'll keep an eye on it here but we'll have to see where it goes for the rest of the week. Mentally I'm feeling OK. The VIX was higher today despite the gains for the overall market. Not sure what to make of that. Still short term oversold but not completely so. The VIX did remain below its 50 day moving average. Waiting on NVDA earnings after the bell tomorrow for most likely the next big market mover. Trying to remain patient for now. Asia higher and Europe lower overnight. We'll see how Wednesday goes.

A little bounce back in the overall market to begin the week but the Dow fell 55 points on average volume. The advance/declines were positive. The summation index is still heading lower. The NASDAQ outperformed today. The S&P had a slight gain. The short term indicators for the S&P 500 are beginning to stall at mid-range. So things could go either way from here. My guess is that we will start to move back up from here. It is a light week for economic data. The earnings highlight will be NVDA after the bell on Wednesday. Option premiums are high with an extra week in the December cycle. I'm on the sidelines until further notice. Gold jumped $44 on the futures today. The US dollar was lower and interst rates ened the day flat. The XAU gained 6 points, while GDX added 1 1/2. Volume was good to the upside. The short term indicators for GDX have turned back up but it remains oversold. Not sure if today was just an oversold bounce or the beginning of something sustained to the upside. I'm inclined to think that it is the former. Still below the short term down trend line on GDX. Another day like today would get us through there though. Mentally I'm feeling OK. The VIX was lower today and is back below the 200 day moving average. The short term indicators remain oversold. My idea is that the VIX goes lower from here and stocks resume their up trend. We'll see. Asia was generally higher and Europe mixed to begin the week. I'll keep an eye on the overnight headlines.

We certainly did not see the usual positive option expiration bias this week as today the Dow fell 305 points on good volume. The advance/declines were around 2 to 1 negative. The summation index is moving lower. The NASDAQ led the way down and that is not a plus. The major indices had gaps down at the open and the selling continued for much of the rest of the day. Markets managed to move sideways for the final couple of hours. The short term indicators for the S&P 500 have now rolled over with plenty of room to go. The weekly candlestick chart here suggests at least some sideways price movement unless we see a big rally next week. I was looking for higher prices in the short term and that was wrong. Not sure where we go from here but will have to check all the charts over the weekend. Gold was off another five bucks on the futures. The US dollar was slightly higher and interest rates finished flat. The XAU was off 1 1/2 and GDX lost 1/4. Volume was average. GDX remains short term oversold and is hanging in at its 200 day moving average for now. GDX technically hit a bear market this week as it is down 20% from the recent high. We will try and wait for things to sort themselves here before trying the GDX options again. Mentally I'm feeling OK. The VIX was up today but off of its best levels on the session. The short term indicators here turned up but remain oversold. I thought the VIX was pointing to higher near term stock prices as well and that was incorrect. I'm not sure where it goes from here but it is still far off from the 20 level although it did pop above the 200 day moving average today. This weeks stock price action puts into question whether the election rally will continue. We'll know more as we get into next week. Rolling into the December option cycle and the premiums will be high. I'm on the sidelines for now. Asia mixed and Europe slightly lower to close out the week. It's Friday afternoon and time for a break.

Lower today as the Dow fell 207 points on average volume. The advance/declines were negative. The summation index is beginning to trend down. Producer prices came in about where expected. The short term indicators for the S&P 500 are starting to roll over but remain overbought. I don't think that the rally is finished here but I could be wrong. Expiration Friday on tap tomorrow. Gold was off $13 on the futures. The US dollar was up and interest rates finished mixed again. The XAU was up 1 1/4, while GDX had a fractional gain. Volume was good. GDX bounced off of its 200 day moving average today. It remains short term oversold with plenty of techncial damage done for the bulls. Mentally I'm feeling OK. The VIX finished flat despite the drop in stocks. Not sure what that means. The VIX is still short term oversold and staying that way. It still implies higher market prices going forward. Europe higher and Asia lower overnight. We'll see how expiration Friday turns out tomorrow.

Back and forth today as the Dow rose 47 points on average volume. The advance/declines were negative. The summation index is tracking sideways. Todays inflation data came in where expected. It was a mixed bag for stocks as the NASDAQ posted a loss on the session. The S&P 500 had a slight gain and remains short term overbought. We are in a waiting mode for now when it comes to the next trade. Two days left in option expiration week. Then we roll into the December option cycle which has an extra week in it plus a Thanksgiving holiday week. So unless we get a very good signal, I'll be sitting things out for a while most likely. Gold was down $26 on the futures. The US dollar was higher yet again and interest rates finished mixed. The XAU dipped 2 1/4 and GDX slipped 1/2. Volume was a bit above average. Short term oversold and staying there for GDX. Almost to the 200 day moving average at the 35 level. GDX has dropped about 20% in around a month from the recent high. That's quite a move in a short period of time. It is probably best to let things settle down in the gold shares before trying to trade them again. Mentally I'm feeling OK. The VIX was lower again today and remains short term oversold. It looks like the VIX will stay oversold for a while. There doesn't appear to be anything in the way of the current stock market rally. Europe and Asia were generally lower overnight. We'll get a Fed chairman speech and inflation data out tomorrow.

Sellers returned today as the Dow fell 382 points on average volume. The advance/declines were around 4 to 1 negative. This will have the summation index moving sideways. The Dow led the way lower and that isn't the most bearish scenario. Waiting on tomorrows inflation data. The S&P 500 remains short term overbought. We are in a watch and wait mode for now. Gold continues to fall as the futures dropped another ten bucks. The US dollar was higher along with interest rates. The XAU shed 2 1/4, while GDX was off over 1/2. Volume was heavy again to the downside. GDX remains short term oversold and below the lower Bollinger band. Looks like it's on the way to the 200 day moving average. Mentally I'm feeling OK. The VIX was lower today and that doesn't fit with a down market. Short term oversold and staying there for the VIX. My guess is that it continues sideways to lower for the rest of this week. Not much else to report today. Moving on from yesterdays loss. Haven't seen the usual option expiration week positive bias yet. Asia and Europe were down in last nights trading. We'll see what Wednesday has to offer.

The Dow kept moving higher to start the week as the most watched index gained 304 points on good volume. The advance/declines were positive. The summation index is moving higher. The overall market was a bit more subdued as both the NASDAQ and S&P 500 finished little changed. The technical condition for the S&P remains short term overbought and staying that way for now. We've got inflation data on tap this week for the market to deal with along with a Fed chairman speech. It's also option expiration week. So there will be plenty of excuses for the markets to move. Gold got clobbered again today as the futures lost $65. The US dollar was higher and the bond market was closed for Veterans day. The XAU fell 9 points and GDX lost 2 1/3. Volume was very heavy to the downside. My GDX November calls got killed. It was a 95 % loss as the gold shares opened with a huge gap lower. Another poor decision on my part for taking on this trade and the management of it stunk. The best result it got to was break even. GDX has broken the up trend line that began in February. Short term oversold and staying that way. The medium term picture has not made it to oversold yet. It appears that GDX is heading to its 200 day moving average at 35. The longer term bullish up trend line comes in at 29. I don't think that it is heading all the way back there but who knows? Mentally I'm feeling a bit frustrated as my last few trades have been losers. But the markets don't care. As usual the one thing that you have to be able to do in this game is to keep moving on. I doubt I'll be taking on any trades here on expiration week but maybe. A short term SPY put trade would be the choice. But that sounds more like a revenge trade due to todays loss. The VIX was flat today. Still in a short term oversold condition. Not sure what comes next for the VIX but sideways isn't out of the question. It's back to the drawing board for me when it comes to the next trade to take on. Might have to sit on the sidelines for a while. Europe and Asia were higher to start the week with the exception of the Hang Seng. I'll keep an eye on the overnight developments.

Still moving higher going into the weekend as the Dow gained 259 points on good volume. The advance/declines were positive. The summation index is now moving up. The Dow led the way and that isn't the most bullish scenario. Both the NASDAQ along with the S&P 500 had small gains. New all time closing highs all around so we can't feel too bad on the bullish side. The S&P is short term overbought. Moving into option expiration week and there's nothing to prevent us moving up from here. There is no overhead resistance. Not sure how long the rally will last but it's usually longer than you think. Gold was off a dozen on the futures today. The US dollar was higher and interest rates finished mixed. The gold shares were lower as the XAU fell 2 1/2 and GDX lost 1/2. Volume was average. My GDX November calls got more than cut in half from yesterdays break even level. With only a week to go in these options obviously now I should have sold them yesterday. This will be most likely another loser unless we see some extreme event over the weekend. Still below the down trend line and 50 day moving average for GDX. Mentally I'm feeling OK. The VIX was still lower today and remains short term oversold. The implication is for more gains in stocks. A big week for the bulls and we'll see if they can build on it going forward. I'll be going over all the charts this weekend but will probably remain on the sidelines with regards to the SPY November options. I'll be looking to get out of the GDX call trade with the smallest possible loss. Europe and Asia were generally lower to close out the week. It's Friday afternoon and time for a break.

The Fed came and went but the rally continued for the overall stock market. The Dow was the laggard though and finished flat on heavy volume. The advance/declines were positive. The summation index is still trying to turn around. The NASDAQ led the way higher today and that's a plus. The S&P 500 is almost back to being short term overbought again. New all time highs now on a daily basis with no overhead resistance. The bulls are in charge. Gold bounced back $35 on the futures. The US dollar was lower along with interest rates. The XAU was up 3 1/3, while GDX gained 7/8. Volume was above average. The short term indicators for GDX have turned back up. However there is a short term down trend line and the 50 day moving average at 40 that needs to be gotten through. Another day like today would do it but that's probably asking a lot. My GDX November calls are back to where I purchased them in this ill timed trade. I should probably be out of this trade tomorrow. Mentally I'm feeling a bit tired. The VIX continued lower and is now below its 200 day moving average. Short term oversold here as well but the VIX can remain that way for an extended period of time during rallies. There doesn't appear to be anything in the way of further price gains in stocks going forward. Option expiration week is next week and if the usual positive bias shows up we'll see more gains. Europe was higher with the exception of the FTSE and Asia finished mixed. We'll close out quite a trading week tomorrow.

It was a Trump victory in the US election and stock markets exploded to the upside. The Dow, S&P 500 along with the NASDAQ hit new all time highs. The Dow gained 1508 points on very heavy volume. The advance/declines were positive. The summation index is trying to turn back up. Stocks rejoiced at the implication of another four years with Trump at the helm of the US government. The short term techncial indicators for the S&P improved and are moving straight up. There is no overhead resistance for the major stock indices. I'm not sure how long the rally lasts but there is nothing in the way for now on higher prices. We've got the Fed tomorrow and a rate cut is widely expected. I missed out on the SPY November calls as I did not want to pay the high premiums for another mistake on my part. Too late for that idea now. Gold got clobbered as the futures lost eighty bucks. The US dollar jumped higher and so did interest rates. The gold shares got slammed with the XAU losing almost 4 points and GDX dropping 1 1/2. Volume was heavy to the downside. Considering the drop in gold itself, it could have been worse for the gold shares. Gold was dropping overnight but not as steep as it became today. I should have canceled my open order for the GDX November calls but did not. Yet another mistake. It was filled at the open and is showing a loss. I might be able to cut the loss tomorrow if we get some good news from the Barrick Gold earnings before the bell. The technical picture for GDX has changed as the short and longer term up trend lines have been broken. It remains short term oversold but can remain that way during down trends. Mentally I'm feeling OK. The VIX gapped lower today which fits with a robust stock market. It is now well below the 20 level and its 50 day moving average. The VIX is right by its 200 day moving average and if it can get below that level the rally will have legs. Today we saw an example of how quick things can sometimes change in the market place. We don't often see moves like we saw today but thare is always that potential. Asia was mixed and Europe lower overnight. We'll see how the market reacts to the Fed tomorrow.

Moving higher on election day as the Dow gained 427 points on light volume. The advance/declines were 4 to 1 positive. The summation index is trying to turn around. Another day of breadth like today would do it. The NASDAQ led the way higher and that is a plus for the bulls. Getting the election put of the way was to be seen a positive for the market and we probably got some of that today. The short term indicators for the S&P 500 have turned up with plenty of room to go. I might be premature but this could be the beginning of a rally to new all time highs for the S&P. I did not get any of the SPY November calls here as the option premiums were too high for me but perhaps there will be another chance. Of course one day doesn't make a rally and the election results could change things. But my thinking is that the market will go higher from here regardless. Gold was up $5 on the futures. The US dollar was lower and interest rates finished mixed. The XAU and GDX had fractional gains on light volume. The gold shares did not follow the overall market today. GDX remains on its 50 day moving average and short term oversold. My open order for the GDX November calls is still out there. Mentally I'm feeling OK. The VIX was lower today and its short term indicators have turned down. The movement here is another reason to be positive on the market going forward. Still above the 20 level and its 50 day moving average though. Getting below those levels should be an all clear signal for the bulls. Europe and Asia were higher overnight. I'll keep an eye on the election results along with the futures movements tonight and we'll see what tomorrow brings.

Some selling today ahead of an important week as the Dow fell 257 points on light volume. The advance/declines were positive. The summation index is moving lower. We've got the US election and the Fed on tap this week. The NASDAQ along with the S&P 500 had minor declines. Waiting on results and data. I still like the idea of the SPY calls in a sigh of relief rally once the election has been called. More importantly the S&P is short term oversold and hanging in at the 50 day moving average along with the lower Bollinger band. However the option premiums remain high for the SPY options. If they do move low enough for me I'll probably give this trade a shot. Gold was off a few bucks on teh futures today. The US dollar was lower along with interest rates. The XAU and GDX had slight fractional moves one way or the other on light volume. GDX is hugging its 50 day moving average and is also short term oversold. I did place an order overnight for the GDX November calls but it was not filled. I am leaving the order open. This is a trade that has worked the previous four months heading into option expiration. We'll see if number five follows that pattern. Mentally I'm feeling OK. The VIX finished flat today. Still in short term overbought territory. Still below the levels of the recent highs for this indicator. It is another reason that leads me to believe that the SPY calls will work here. However if the VIX spikes up from here that trade idea would be dead. Asia was mixed and Europe lower to begin the trading week. We'll see how election Tuesday shapes up.

We did not see follow through selling today but instead got an oversold bounce as the Dow gained 288 points on light volume. The advance/declines were negative. The summation index is moving lower. The jobs report came in weaker than expected. The NASDAQ led the way up but we are in a precarious market position. We do not know if today was just a reaction to relieve the oversold market condition before we head lower or if the decline will end here at the 50 day moving average on the S&P. We are in short term oversold territory on the S&P 500 so you can make the case either way. However todays price action cannot be construed as positive, since the early gains were sold off for the rest of the session. I did place an overnight order for the SPY November calls but it was not filled. I think that I still like this idea but from lower levels on the S&P if we get them. Gold was off five bucks on the futures. The US dollar was higher along with interest rates. The XAU lost almost 2 points and GDX dipped 1/2. GDX is now short term oversold which is what I've been waiting for to consider the calls here again. A call trade on GDX has worked the last three times it got short term oversold in the previous three months. There is nothing to say that it won't work again this time around. GDX is right on its short term trend line though. A break below here would make me want to reconsider this idea. Mentally I'm feeling OK. The VIX was lower today and some of the short term indicators have turned down. The rise in the VIX did stop at the recent previous levels during the past couple of months. This is another vote for higher stock prices moving forward and trying the SPY November calls next week. That's not to say that the VIX can't simply turn back up and stock prices continue to move lower. The techncial evidence at the moment though suggests that isn't going to happen. There will be plenty to ponder going over the charts this weekend. Asia was mixed and Europe higher to close out the week. It's Friday afternoon and time for a rest.

A tech wreck on Wall street today as the Dow fell 378 points on good volume. The advance/declines were better than 2 to 1 negative. The summation index continues down. Sour earnings reports from big tech sent stocks with a gap lower at the open and they never looked back. The inflation data came in where expected. The NASDAQ led the way lower dropping over 2 1/2%. The S&P 500 lost over 100 points. It was that kind of day. The S&P is getting to short term oversold but not there yet. Expect some follow through selling tomorrow. The S&P is just about at its 50 day moving average. There is support for the S&P at 5600 and also a longer term up trend line at 5500. Not sure if we get to these levels and if they hold if we do. However I'm still thinking about getting some of the SPY November calls when the S&P 500 gets to short term oversold in the next few days. Gold dropped $44 on the futures. The US dollar finished flat and interest rates were slightly higher. The XAU lost 5 1/4, while GDX slipped 1 1/8. Volume was good to the downside. GDX is getting to short term oversold but is not there yet either. It bounced off of its 50 day moving average today which is its first area of support that includes the short term up trend line. The next up trend line comes in down at the 37 level. Not sure what to do next here but we'll wait and see what level GDX becomes oversold before making any trading decisions. Mentally I'm feeling OK. The VIX jumped today and that was to be expected with the carnage on the street. At the 23 level and above the upper Bollinger band. Another day like today will get us to short term overbought on the technical indicators. The VIX is now at the level for the past couple of market drops in the last two months. So it is possible that the worst is close to being over for the bulls but we'll know in the days ahead. The breadth today also wasn't that bad for a market that got crushed. We'll see where we go from here. Asia and Europe were down overnight and I'd expect more selling on Friday. We'll close out the trading week tomorrow.

Down, up and back down today as the Dow fell 91 points on light volume. The advance/declines were slightly positive. The summation index is still moving down. The NASDAQ led the way lower but it wasn't a steep decline. The S&P 500 remains in a sideways channel. The short term indicators have now turned down for the S&P. Seems like the market is just biding its time here perhaps simply waiting on the outcome of the US election. Or maybe something else is going on below the surface. We'll wait for some kind of technical signal before attempting the next SPY option trade. Gold was up $17 on the futures to a new all time high. The US dollar was lower and interest rates were slightly higher. The XAU lost 2 1/4, while GDX was off 1/2. Volume was light. Gold up and the gold shares down isn't a bullish scenario. Not sure if GDX is forming a bottom here or simply stalling before heading lower. Mentally I'm feeling OK. The VIX was up today and is back above the 20 level. The short term indicators have moved up from mid-range. The VIX implies more selling after todays reading. We'll see. Inflation data due out tomorrow. Europe and Asia were lower last night with the exception of Japan. I'll keep an eye on the overnight developments.

It was a one day upside reversal for the overall market today as it opened lower and closed higher but the Dow fell 154 points on light volume. The advance/declines were better than 2 to 1 negative. The summation index is moving down. Once again we had poor breadth as the market continues to try and figure out which way to go. The NASDAQ finally closed at a new all time high. The S&P 500 had a slight gain. The short term indicators here are moving sideways. Perhaps the tech earnings out this week can get things moving one way or the other. We don't have a clear technical signal for a trade here so we'll have to wait. I'm still in the camp that the SPY calls are the way to go here. I could be wrong. Gold was up $30 on the futures to a new all time high. The US dollar and interest rates finished the day flat. The XAU was up 2 3/4, while GDX added around 2/3. Volume was average. The short term indicators for GDX are trying to turn up from the mid-range level. We will wait for the gold shares to get oversold. Mentally I'm feeling OK. The VIX was lower today which fits the overall market. The short term indicators remain at mid-range. Waiting on earnings and the economic data due this week. End of the month on Thursday. The US election plus the Fed next week. Plenty of excuses for market movement. Waiting on a decent trading signal for now. Plenty of time remains in the November option cycle. Asia higher and Europe lower overnight. We'll see how things go tomorrow.

Higher to begin the week but not a lot of conviction as the Dow climbed 273 points on light volume. The advance/declines were 2 to 1 positive. The summation index continues lower. The Dow led the way today and that isn't the most bullish scenario. We had a gap up at the open and then traded sideways to lower for the rest of the day. The NASDAQ and S&P 500 had slight gains and lagged the Dow. The TRAN was up over 1%. The S&P is still in a sideways trading range with the short term indicators at around mid-range. I'm leaning towards the SPY calls here as the last time the summation index turned down and the market went sideways we saw an upside break in prices. But we'll wait and see for now because the short term up trend line on the S&P has been violated. Gold finished flat on the session but up off of its lows. The US dollar was flat as well and interest rates went higher. The XAU and GDX had slight fractional losses on light volume. The short term indicators for GDX are mid-range and appear to be trying to turn back up. I'm still going to wait for an oversold condition before trying the GDX calls again. Mentally I'm feeling OK. The VIX was lower today as the Bollinger bands continue to tighten. Back below 20 here. I'm still not sure what's next for the VIX but the Bollinger bands are forecasting that something is brewing there. Earnings still coming in and important economic reports due Thursday and Friday. SPY option premiums are still high. Europe and Asia were up to start the week. I'll keep an eye on tonights headlines.

Friday began with a gap higher at the open as buyers started early but the market could not hold on to the gains and it ended as a one day downside reversal. The Dow fell 260 points on light volume. The advance/declines were negative. The summation index is moving lower. It wasn't a broad based sell off as the NASDAQ posted another gain on the day and the S&P 500 was barely lower. The short term indicators for the S&P are now mid-range. Both the NASDAQ and S&P 500 have moved basically sideways for the past couple of weeks. We don't know if it's a top being put in or a consolidation before we move higher. The Dow has taken a drop though. The NASDAQ being able to hold up is a plus but todays daily candlestick there looks bearish. I'll have to check things over the weekend and decide which course of action to take. Gold was up $6 on the futures. The US dollar was higher and interest rates ticked up. The XAU was dwon 3 1/3 and GDX lost 1/2. Volume was average. The short term indicators for GDX are heading lower. We'll wait for GDX to get oversold before thinking about any trades there. Could be a while. Mentally I'm feeling OK. The VIX was higher today which fits the Dow but not the overall market. The short term indicators are moving up and the VIX closed above the 20 level. I'm still not sure what's in store next for the VIX but markets always know more than we do. Plenty of data out next week and it is the end of the month as well. Throw in the constant earnings reports and you can see that it is a time to be nimble. The following week we'll get the US election and a Fed meeting. So there will be opportunities out there. I'll be going over the charts as usual this weekend. Europe and Asia were mixed to finish the week. It's Friday afternoon and time for a break.

Today was a sideways affair as the Dow fell 140 points on light volume. The advance/declines were positive. The summation index continues lower. Both the NASDAQ and S&P 500 posted gains on the session with the NASDAQ leading the way. The short term indicators for the S&P 500 are beginning to stall so perhaps we'll see some more upside tomorrow. Also some of our shorter term indicators have gotten oversold pretty fast so a bounce is possible. I'm still wary of the market here though as the short term up trend line for the S&P was recently broken on an intraday basis. However things have held up for now and we cannot rule out new all time highs as a possibility either. So I'm back on the sidelines with regards to the SPY options for now. Gold bounced back twenty bucks on the futures. The US dollar was lower and interest rates were slightly down. The XAU fell three points and GDX dropped 1 1/8. Volume was good to the downside. Both GDX and the XAU came up from the worst levels on the day. The gold shares were influenced by the poor earnings report from NEM which drove the gold share complex lower. NEM lost about 15% of it value today. Hopefully that is not a sign of things to come for the gold shares. The short term indicators for GDX have rolled over. Mentally I'm feeling OK. The VIX was lower today as the Bollinger bands continue to tighten. Still below the 20 level here and above the 50 day moving average. I'm not sure where the VIX goes from here. Hence we'll wait until next week to decide what kind of position to take with regards to the SPY options. Asia was lower and Europe slightly higher in last nights trade. We'll close out the trading week tomorrow.

Another gap down to begin the trading day except this time the selling continued. The Dow fell 410 points on light volume. The advance/declines were around 3 to 1 negative. The summation index is heading down. The NASDAQ led the way lower and that is not a good sign for the bulls. One day does not make a trend though. The market came back in the last couple of hours or it would have been worse. The S&P 500 did break the up trend line at 5800 but bounced back to finish close that level. The short term indicators for the S&P have rolled over with plenty of room to go. I'm looking at the SPY November puts now but the premiums are pretty high. We'll see if there is any follow through selling tomorrow. Gold took a breather and dropped $30 on the futures. The US dollar was higher again and interest rates were up slightly. The XAU fell 3 1/3, while GDX was off 7/8. Volume was average. GDX remains short term overbought. No trades in mind here for GDX right now as we will wait for it to return to short term oversold before trying the calls there. Mentally I'm feeling OK. The VIX was higher today which fits a down market. Still short term oversold on the VIX. The Bollinger bands here are beginning to contract which would imply that a big move is coming for the VIX. It remains above its 50 day moving average. I think that I'll let this week go by before committing to the next trade. Perhaps premiums on the options will come down a bit depending on the rest of this weeks volatility. We'll see. Asia was mixed and Europe lower overnight. I'll keep an eye on tonights headlines.

We had a big gap lower to begin the session and spent the rest of the day trying to make it all back. The Dow finished down 6 points on light volume. The advance/declines were negative. The summation index is moving lower. The NASDAQ had a small gain and the S&P 500 was barely lower once again. Sideways for a little over a week now on the S&P. It remains short term overbought. The breadth remains negative here as the market is deciding where to go next. It could be another consolidation before new all time highs. The up trend line from the beginning of this rally that began in August comes in at 5800. As long as that holds the trend is up. Gold continues to shine as the futures rose over twenty bucks. The US dollar was slightly higher and interest rates were steady. The XAU gained 3 1/2 and GDX was up 7/8. Volume was average. Going straight up now on the gold shares. This cannot last forever. GDX remains short term overbought and reaching extremes. Markets can stay overbought longer than you think though. I won't be chasing it here. Mentally I'm feeling OK. The VIX was lower today. Above its 50 day moving average and below the 20 level. Still short term oversold and I'm still not sure what to expect next here. I'm looking for some kind of trade here but do not have any decent signals as of yet. Some economic data out this week but nothing major. Earnings continue to be reported. We are in a holding pattern for the time being. Asia and Europe were generally lower last night. We'll see what tomorrow brings.

Selling to start the week as the Dow fell 344 points on light volume. The advance/declines were 4 to 1 negative. This should move the summation index lower. We got a signal from the McClellan oscillator on Friday for a big move within the next two sessions. Today would qualify for the Dow but not the overall market. The S&P 500 only had a slight decline, while the NASDAQ posted a small gain. So we'll see if we get more of an outsized move tomorrow. The technical condition for the S&P remains the same. Short and medium term overbought and staying that way. The rally from the beginnning of August continues and my ideas for some type of decline remain incorrect. I'm on the sidelines for now with regards to the SPY options. Gold was up five bucks on the futures. The US dollar was higher along with interest rates. The XAU had a fractional gain and GDX was barely higher. They both finished well off of the highs for the day. Volume was average. GDX is short term overbought and I'll wait for it to get to oversold before thinking about the calls there again. Mentally I'm feeling OK. The VIX was higher today. It remains above the 50 day moving average. The short term indicators are in oversold territory but not completely so. Not exactly sure what's next for the VIX. I'm in a holding pattern for now when it comes to the next trade as we have just moved into the November option cycle and the premiums are high. Still waiting on the NASDAQ to hit a new all time high and it is getting very close. Europe and Asia were lower overnight. We'll keep an eye on tonights developments.

A relatively quiet expiration Friday as the Dow rose 36 points on light volume. The advance/declines were positive. The summation index is in a general sideways trend. The NASDAQ was the leader to the upside today and that's a plus for the bulls. I've been looking for some type of decline here and it hasn't happened. The market has simply stayed overbought. The volume has been pretty low though and I cannot think that the rally can go on much longer. But who knows? There is not overhead resistance as new all time highs are happening on a regular basis. Still waiting on the NASDAQ to confirm though. The S&P 500 remains short term overbought as it drifts higher. Rolling into the November option cycle on Monday. Gold was up over twenty five bucks on the futures as new all time highs there continue. Silver had a big day moving higher. The US dollar was lower and interest rates were steady. The XAU jumped 7 2/3, while GDX climbed 1 2/3. Volume was good to the upside. GDX is now short term overbought. GDX is now both short and medium term overbought but nothing seems to be in the way of this rally. We will wait again for GDX to get back to oversold on the short term before trying the calls there again. Perhaps this time when that occurs I'll have the good sense to give them a try. We'll see. Mentally I'm feeling OK. The VIX dropped and landed on its 50 day moving average. The short term indicators are heading lower with room to go. Movement on the VIX suggests higher stock prices to come in the near term. It seems like there is no stopping this market from moving up at this point. I'll be checking out the charts over the weekend to try and figure out the next move. Asia and Europe were higher to finish the week. It's Friday afternoon and time for a break.

A mixed bag today as the Dow rose 161 points on light volume to another record close. The advance/declines were negative. The summation index is back to heading sideways. The NASDAQ barely posted a gain and the S&P 500 was off a point. The S&P remains short term overbought. I remain convinced that it needs to take a pause. Expiration Friday tomorrow, not sure what that will bring. Gold was up $15 on the futures. The US dollar was higher along with interest rates. The XAU gained 1 1/2 and GDX was up another 1/2. Volume was average. The GDX calls would have worked in the October option cycle and that was a trade that I missed. Mentally I'm feeling OK. The VIX was lower today. The short term indicators here are still at the mid-range level but appear to be picking up steam heading down. This would imply lower VIX readings and still yet higher stock prices going forward. Still waiting for the TRAN and The NASDAQ to confirm the new all time highs for the Dow and they are almost there but not yet. Confirmation would change my idea about a drop for stocks in the near term. It is something worth keeping an eye on in my view. Europe higher and Asia lower overnight. We'll see how expiration Friday goes tomorrow.

Back to the upside as the Dow gained 337 points on light volume. Another record close there. The advance/declines were 3 to 1 positive. This should move the summation index higher. The Dow led the way today and that is not the most bullish scenario. Both the NASDAQ and S&P 500 were higher but not as much as the Dow. The short term indicators for the S&P remain overbought and heading sideways. I sold my SPY October puts for an 85% loss. This was one of those trades that was a failure from the beginning and never showed any profit. My timing was off early which can't happen on short term trades. I might have to simply skip the short term ideas going forward because my track record there isn't all that good. I do still think that things will head lower from here however I can't wait around for the market to cooperate. I could be wrong. Gold was up $11 on the futures. The US dollar continues higher and interest rates finished flat. The XAU was up 1 1/2, while GDX added 1/3. Volume was average. Both finished off of their highs for the session and have bearish evening stars on their daily candlestick charts. The short term indicators for GDX are still rising though. Mentally I'm feeling OK. The VIX was lower today and is back below the 20 level. The short term indicators here have turned back down but still with no conviction. Getting to mid-range on the indicators for the VIX. Some economic data out tomorrow with retail sales being the most watched. More earnings due as well. I'll be on the sidelines for now. Asia and Europe were mostly lower last night. We'll keep an eye on the overnight developments.

Some sellers showed up today as the Dow fell 324 points on light volume. The advance/declines were about even. The summation index is beginning to move sideways. No real reason for todays decline but the market has been short term overbought for an extended period of time. The NASDAQ led the way lower. The short term indicators for the S&P 500 have turned lower but remain in overbought territory. I'm still a believer in some type of decline from here but it probably won't be in time to save my SPY October put trade. It remains a big loser with only three days to go. I was a day early on this trade and timing is everything when there isn't much left of it in an option cycle. Gold was up a dozen on the futures. The US dollar finished flat and interest rates dropped. The XAU rose 1 1/3, while GDX gained 1/2. Volume was light. The short term indicators are moving up from mid-range for GDX which implies more gains here in the near term. We'll see. Mentally I'm feeling OK. The VIX was higher today which fits the down market. Back above the 20 level. The short term indicators here are trying to turn back up. If successful it should lead to more selling in the near term. We'll see. Asia and Europe were lower with the exception of Japan. We'll see how it goes tomorrow.

Continuing to the upside on a partial holiday Monday as the Dow added 201 points on pretty light volume. The advance/declines were positive. The summation index is beginning to stall. The NASDAQ led the way higher and that's a plus for the bulls. The S&P 500 remains short term overbought as it has been for quite a while. My SPY October puts got crushed today and this trade will end up being a loser unless a sell off appears out of the blue. I'm too far out of the money with only four days to go before option expiration. Shorts got squeezed along with index put owners. I still cannot believe that the market continues higher with such light volume but price is the ultimate judge and jury. No overhead resistance so I'm not sure how long this goes on. Gold was off $7. The US dollar was higher and the bond market was closed. The XAU and GDX had slight fractional moves in either direction on extremely light volume. The short term indicators for GDX are now mid-range. Mentally I'm feeling OK. The VIX was lower today which fits the upside for stocks. The short term indicators here continue to drift lower with no conviction. Back below the 20 level now on the VIX. Not much economic data due out this week but we will have earnings reports to deal with. Europe and Asia were generally higher to start the week. We'll keep an eye on tonights headlines.

The inflation data was a touch lighter than expected and the market took off to the upside. The Dow climbed 409 points on light volume. The advance/declines were just shy of 4 to 1 positive. The summation index is still trending lower but not as rapid. The Dow was the leader and that isn't the most bullish scenario but we cannot argue with price. The S&P 500 had a decent gain and is now at its upper Bollinger band. It remains short term overbought. My open order for the SPY October puts was filled this morning and is showing a loss as my timing was early. Had I waited until later in the session I could have gotten a better entry point. However we'll trade it from where it is. I'm still a believer in this idea but we'll need to see some weakness early next week for the trade to work. Monday is a partial holiday as the bond market will be closed. Gold jumped $34 today on the futures. The US dollar finished flat again and interest rates were just a bit lower. The XAU and GDX had fractional gains on light volume. A nice move for gold but the gold shares lagging isn't a bullish sign. Especially when the overall martket had such a positive day. Not sure what to make of it. Mentally I'm feeling OK. The VIX was lower today which fits an up market. The short term indicators are rolling over but it isn't steep or decisive just yet. Still above the 20 level on the VIX. The light volume rally continues but I do not think that it will end well as we never trust moves without volume. Perhaps it can stay together next week with the usual positive options expiration bias. But we'll see. I'm in the next trade now and the focus will be there. We'll check the charts over the weekend as usual. Europe higher and Asia mixed to close out the week. It's Friday afternoon and time for a break.

We had a gap down at the open as the inflation data was just a bit hotter than expected. The rest of the day was spent in a sideways trading range as the Dow lost 58 points on light volume. The advance/declines were negative. The summation index continues lower. The market had reasons to sell off today but it didn't. So it turned into a day of hanging around. The S&P 500 remains short term overbought. My open order for the SPY October puts is still out there but we are running out of time. Also time premium is beginning to get sucked out of the options so the price on the puts dropped today despite a drop in the S&P. So this trade may not still be the best idea. I'll see if it gets filled heading into the weekend but if not it will be canceled and maybe for good. Gold was up twenty bucks on the futures. The US dollar finished flat as did interest rates. The gold shares found buyers as the XAU gained 4 1/3 and GDX was up over a buck. Volume was average. The technical case for the gold share calls was there but I did not take advantage of it. Concentrating on the SPY probably cost me the opportunity here. The short term indicators for GDX have now turned up from oversold and should have more room to go on the upside. One day doesn't make a trend but GDX has also bounced off of its short term up trend line. Mentally I'm feeling OK. The VIX was just a touch higher today. The short term indicators here are trying to roll over. If successful there should be new all time highs for the S&P in the near future. We'll have to see how the market reacts to the PPI tomorrow. Asia was up and Europe slightly lower overnight. We'll see how things go on Friday.

A new all time closing high for the Dow as it gained 431 points on light volume. The advance/declines were positive. The summation index is still moving lower though. The breadth on this advance is lacking but you cannnot argue with price. The S&P 500 closed at a new all time high as well. Still short term overbought on the indicators here but not completely. The market isn't waiting for the inflation data as it continues higher. The volume is light though and I don't trust light volume rallies. I have once again adjusted my open order for the SPY puts to a higher strike price as I am still in the camp that the October puts will work at some point. But I could be wrong. There is no overhead resistance now for the S&P. However the daily candlestick chart has the look of a rising wedge which would be bearish if correct. Gold was off $7 on the futures. The US dollar was higher along with interest rates. The XAU and GDX had fractional losses on light volume. Once again they came up off of the lows for the session. GDX is short term overbought and at its 50 day moving average. The GDX November calls are still a bit too pricey for me but you can certainly make the case to buy the gold share calls here. Mentally I'm feeling OK. The VIX was lower today and remains short term overbought. Not sure what's happening with the VIX as it usually doesn't stay overbought for long. Still above the 20 level here. Not sure how the market will react to the inflation data in the morning. We were up a lot today so even if the data is benign I'm not sure what the effect will be. My guess is that the PPI will come in hotter than the CPI so I might just get some of the SPY October puts tomorrow if my adjusted order isn't filled. But that's a decision for tomorrow. Asia was mixed and Europe higher in last nights trade. We'll watch tonights headlines and check the reaction to the inflation report on Thursday.

Back to the upside today as the Dow gained 126 points on light volume. The advance/declines were slightly positive. The summation index continues lower. The NASDAQ clearly led the way today and that is a plus. So now the S&P 500 remains in a sideways channel and I am not sure where it goes next. The short term indicators have turned back up for the S&P and it can probably go either way here. You can again make the case for an upside breakout. You can also find technical reasons for stocks to move lower here as well. When in doubt stay out is usually good advice. We are running out of time in the October option cycle. I did adjust the price lower on my open order for the SPY October puts but this may not be the right idea if we continue higher. The inflation data on Thursday and Friday could spark big moves either way. The data is supposed be coming in light. I suppose that I'll see how things go tomorrow and take it from there. Gold was off $24 on the futures. The US dollar finished flat again and interest rates were little changed. The XAU lost 1 1/8 and GDX finished flat. Both were up from the lows on the day. Volume was light. Both the XAU and GDX hit their 50 day moving averages today. They are also both short term oversold. You can make the case that the GDX calls should be purchased here and I would not argue with that. I did look out to the November option cycle here but the premiums are still a bit high for me. Gold down and the gold shares holding up rather well is bullish for GDX. Mentally I'm feeling OK. The VIX was lower today which fits the upside in stocks. Still short term overbought here which makes me think that we'll see more near term upside for the market. It is another reason to reconsider the SPY puts here. Asia was mixed and Europe lower overnight. We'll see what tomorrow brings.

Selling to start the week as the Dow fell 398 points on light volume. The advance/declines were around 3 to 1 negative. The summation index is now moving lower. We were lower from the start and just kept on going. The NASDAQ led the way down and that is not a plus. The S&P 500 is still in a sideways channel but appears to be ready to break to the downside. Whatever I thought about the S&P going on to making new all time highs here has changed. The short term techncial indicators on the S&P have rolled back over. It appears that I am too late for the SPY October puts but my open order remains out there. Fridays price action now looks like the final bounce before we head south. Premiums on the SPY puts have increased. Gold was off $4 on the futures. The US dollar finished flat and interest rates continued to rise. The XAU dropped 2 1/8, while GDX was off 1/2. Volume was light. GDX has now reached short term oversold but not completely. Do we switch ideas here and try the GDX October calls? Not sure as all the recent declines for GDX have made it below its 50 day moving average and we are not there yet. But perhaps we can start to look at the Novermber calls there. Mentally I'm feeling OK. The VIX was up today and now is firmly above the important level of 20. The VIX is also now short term overbought and it usually doesn't stay that way for long. It is above the upper Bollinger band as well. So it is hard to make a case for chasing the SPY puts here unless the VIX at least turns around from these levels. But the more likely scenario is that I've missed this opportunity for the October puts. Inflation data out later this week on Thursday and Friday. That should provide a catalyst for more price movement one way or the other. Asia was up with the exception of India and Europe was generally higher. We'll keep an eye on the overnight developments.

The jobs report came in better than expected and the market liked what it saw. The Dow climbed 341 points on light volume. The advance/declines were positive. The summation index is back to tracking sideways. The NASDAQ led the way today and that's a plus. We were due for some kind of positive move and it showed up. The next question is are we on our way to new all time closing highs for the S&P 500 to follow the Dow? It appears that may be the case. The recent negative price action now looks like a consolidation on the way to higher prices. But one day doesn't make a trend as they say. However the short term indicators on the S&P have now turned back up and I would not rule out new all time highs there early next week. I could be wrong. My open order for the SPY October puts remains in place. Another day like today would certainly get the order filled and I'll have to decide over the weekend what to do. Perhaps move to another strike price or maybe forget about this idea altogether. Gold was off $7 on the futures. The US dollar was higher along with interest rates for the third day in a row. The XAU had a fractional loss and GDX finished flat. Volume was light. Middle East tensions are keeping a bid in the gold shares. Normally a stronger dollar and higher interest rates would be negative for the gold shares. Still not completely short term oversold for GDX. Mentally I'm feeling OK. The VIX was lower and that fits the upside that we saw in stocks today. Still short term overbought here so the VIX implies that we'll see higher equity prices going forward. It is another reason to reconsider the SPY puts here. There will be plenty of time to figure out the path when going over the charts this weekend. Asia and Europe were mostly higher to finish the week. It's Friday afternoon and time for a break.

Waiting on the employment data as the Dow dropped 189 points on light volume. The advance/declines were around 2 to 1 negative. The summation index is trying to move lower now. The Dow led the way down and that isn't the most bearish scenario. Some of our work says that at least some kind of bounce is due now. Whether or not it happens tomorrow remains to be seen. We also have the backdrop of the constant headlines out of the Middle East as the world tries to contemplate the possiblity of all out war. We stick with the technicals as the short term indicators for the S&P 500 have rolled over with plenty of room to move lower. That doesn't mean that we can't go higher tomorrow but any upside could be short lived. Or the market continues to drop and in that case we will have missed the SPY October puts idea. My open order for the puts is still out there but nowhere near to be getting filled. Probably will have to adjust it going forward. Gold rose $8 on the futures. The US dollar was higher along with interest rates again. The gold shares followed the overall market lower with the XAU off 2 3/4 and GDX shedding 3/4. Volume was on the light side. The short term indicators for GDX are not yet oversold. Perhaps there will be a chance at the GDX calls in the October option cycle but it would be strictly a short term trade. Mentally I'm feeling OK. The VIX was up today and closed above the 20 level. Getting to short term overbought on the indicators here. This is why it could be tough to try the puts here because the VIX usually doesn't stay overbought for long. This also why tomorrows price action is important. If the market falls then trying the SPY October puts might be out of the question. If the market rises then trying the puts will make more sense as there will be some breathing room to go higher on the VIX next week. As always there are many moving parts to the option trades that must be taken into consideration. Europe was lower and Asia mixed in last nights trade. We'll see what the market reaction is to the jobs report tomorrow.

A one day reversal to the upside today as the market opened lower and finished higher. The Dow rose 39 points on light volume. The advance/declines were negative. The summation index is still moving sideways. The NASDAQ and S&P 500 posted very slight gains. The short term indicators for the S&P have rolled over but might be beginning to stall. I did place an order for the SPY October puts overnight. It will take some gains to be filled and I'm leaving the order out there. Waiting on the jobs data Friday so I'm not sure what to expect out of tomorrows session. Gold dipped $11 on the futures. The US dollar was higher along with interest rates. The XAU and GDX had slight fractional moves one way or the other on pretty light volume. The short term indicators for GDX are still moving lower and are now at mid-range. Still waiting for GDX to reach short term oversold before thinking about the calls there. Mentally I'm feeling OK. The VIX was lower today and the short term indicators are beginning to stall here as well. Still above the 50 day moving average. Ideal scenario here would be the VIX moves lower and stocks move higher to fill my SPY put order. But then again if the market moves to new all time highs and keeps going the puts are not the place to be. For now I'm sticking with trying the SPY October puts. Asia was somewhat lower and Europe mixed overnight. We'll see what tomorrow brings.

October begins with some selling as the Dow fell 173 points on average volume. The advance/declines were negative. The summation index is still in a sideways configuration. Middle East tension and a huge dock strike in the US was the background for today. Are we too late for the SPY October puts? Hopefully not. The NASDAQ led the way down and that is not a plus for the bulls. The S&P 500 shed more than fifty points. The short term indicators there have turned down although they remain in overbought territory. I'm looking for some upside by Thursday but I could be wrong. Then there's the jobs report and market reaction on Friday to deal with. I am a believer that the SPY puts are the way to go here but now the premiums have moved up and they were already high with still over two weeks to go in the October option cycle. I'm going to be looking at probably buying some this week though. Gold was up $23 on the futures. The US dollar was higher and interest rates dipped. It looks like the flight to safety trades were popular today. The XAU rose 2 1/2, while GDX added 2/3. Volume was average. The short term indicators are now stalling for GDX so perhaps they won't make it back down to oversold. We'll see. I'll continue on the sidelines with regards to GDX for now. Mentally I'm feeling OK. The VIX popped up today and at one point was above the 20 level. The short term indicators are moving higher and now imply more near term selling. This is why we may be too late on the index puts as the VIX is not going to wait around for us. It also closed back above its 50 day moving average. Never any easy trades in this game. Asia and Europe were mixed in last nights trade. We'll see how things go tomorrow.