Continued buying to close out the month and the quarter as the Dow rose 47 points on average volume. The advance/declines were positive. The summation index is starting to drift higher. The Dow remained the leader today. The NASDAQ posted a small loss and remains the laggard for now. The S&P 500 is still short term overbought, staying there and closed at an all time high. The liquidity remains abundant as there seems to be plenty of buyers regardless of the circumstances. We'll get inflation data and the Fed chairman tomorrow but the US market will be closed as will others around the globe. So there will be a long holiday weekend to digest whatever comes out. Golds rally continued as the futures were up $28. The US dollar was higher and interest rates finished mixed. The XAU gained 3 1/4, while GDX added 2/3. Volume was good to the upside and GDX has closed above the resistance at 31.25. The gold shares, although short term overbought, should be moving higher from here. We'll try to jump on board next week despite the overbought technical conditions. It is risky though as GDX is now above its upper Bollinger band. However the implications of GDX breaking above its long term resistance line that has been in effect for two years cannot be ignored. It appears that gold and the gold shares are simply heading higher for whatever reasons. Mentally I'm feeling OK. The VIX was up a bit today which doesn't fit with an up market. Still short term oversold on the VIX. Not sure where it's heading next. A long weekend on tap with plenty of time to go over the charts. Our game plan for now is simple. Try and buy some GDX calls next week on any drop in that index. Might be tough if Monday opens higher for gold yet again. We are late on this idea but do think that the gold shares have further to run up ahead of the April option expiration. We'll see. Asia was mixed and Europe barely higher overnight. It's Thursday afternoon and time for a break.

Bouncing back to the upside as the Dow climbed 477 points on average volume. The advance/declines were better than 4 to 1 positive. The summation index is trying to turn back up. Another day like today would do it. The Dow was the leader and that isn't the most bullish scenario going forward. The S&P 500 remains short term overbought and closed at another new all time high. The market took off to the upside in the final hour. We've got the end of the month coming up tomorrow before a long holiday weekend. After todays price action you have to figure that we'll keep on moving up. But we'll see. I am going to remain on the sidelines with regards to the SPY options for now. Gold was up $14 on the futures. The US dollar finished flat and interest rates were lower. The gold shares followed the overall market higher. The XAU jumped 4 1/4, while GDX added 1 1/8. Volume was good. I canceled my open order for the GDX April calls as the gold shares are now moving up and my order did not have a chance to be filled. We are now on the cusp of breaking the longer term resistance at 31.25 on GDX. This is a move that I will chase if we get through there because the implications for higher gold share prices would be clear. But we haven't gotten through yet. Perhaps yesterday was the day to try those options but hindsight is usually correct. Mentally I'm feeling OK. The VIX was lower today and remains short term oversold. The daily chart here looks like it can go lower which would mean that the rally continues. Europe finished higher and Asia was mixed overnight. We'll close out the week tomorrow.

We had one day reversals to the downside for most of the major indices as the Dow fell 31 points on light volume. The advance/declines were slightly negative. The summation index is still moving sideways. A gap up to start the day was followed by sideways rangebound trading until a drop in the final hour. The NASDAQ led the way lower but there was no magnitude to the drop. Players are absent as shown by the very light volume totals. The trading week sems to be on holiday for more than just Friday. The short term indicators for the S&P are heading lower but not at a rapid clip. Perhaps we will simply be in a waiting mode until next week. Gold was up a couple bucks on the futures after being higher early on. The US dollar finished flat as did interest rates. Markets seem to be just waiting around. The XAU had a fractional loss, while GDX finished flat. Volume was very light again. The gold shares were down from their best levels on the session as well. The short term indicators for GDX are now mid-range. I did place an open order for the GDX April calls but it will take some selling there to be filled. My thinking is that GDX is still digesting the good gains that were made and is possibly forming a bullish flag before moving higher through the longer term 31.25 resistance level. If it can drop back below 29 perhaps my open order will be filled. That's the hope right now but we'll adjust our thoughts as the week moves on. It is also possible that GDX is forming a top here and will move much lower. But I'm really not on board with that scenario right now. Mentally I'm feeling OK. The VIX was barely up today and remains short term oversold. Not sure what to expect next from this indicator. A slow week so far and I suppose that will continue. Europe was higher and Asia mixed overnight. We'll keep an eye on tonights headlines.

A bit lower to begin the week as the Dow fell 162 points on light volume. The advance/declines were negative. The summation index is beginning to track sideways again. The Dow was the leader lower. The short term indicators for the S&P 500 have rolled over but remain overbought. Not sure what to expect this week as the main events occur on Friday when the market is closed for a holiday. We'll get inflation data and the Fed chairman on the 29th. I am remaining patient or at least trying to with regards to the SPY April options. Gold was up a dozen on the futures. The US dollar was lower and interest rates ticked up. The XAU and GDX had fractional moves higher on light volume. The short term indicators for GDX are now mid-range. Waiting for GDX to get short term oversold but don't know if it will get all the way there. Still plenty of time in the April option cycle. Mentally I'm feeling a bit tired. The VIX was a bit higher today but off from the best levels on the session. Still short term oversold here. Today was somewhat of a listless trading session as it seems as though some traders are taking the short trading week off. So we could be in for a mundane period for the next few days. Asia was generally lower and Europe mixed to start the week. We'll see if things pick up tomorrow.

Digesting the recent gains as the Dow fell 305 points on light volume. The advance/declines were 2 to 1 negative. The summation index is still trending higher. The overall market was stronger than the Dow, with the NASDAQ posting a small gain. The S&P 500 remains short term overbought. The trend is up and has been for months. There doesn't seem to be anything in the way of still yet higher prices going forward. A holiday shortened week coming up for the US. It might find less players than usual as spring break could come into play. We are patiently waiting for a signal to trade the SPY options. Gold dropped about twenty bucks on the futures. The US dollar was higher and interest rates were lower. The XAU slipped 1 2/3 and GDX was off 1/3. Volume was average. The short term indicators for GDX have now rolled over. I'm still in favor of the GDX April calls but the picture has gotten muddy. We may have to wait for GDX to become short term oversold or maybe forget about this idea for now. We'll consider the choices over the weekend. Mentally I'm feeling OK. The VIX was slightly higher today and remains short term oversold. The daily chart looks like it wants to move higher from here but we'll have to see how it goes at the beginning of next week. We'll check the charts over the weekend to try and come up with some type of game plan for next week. Europe and Asia were mixed to end the week. It's Friday afternoon and time for a break.

Upside follow through today as the Dow gained 269 points on average volume. The advance/declines were a little better than 2 to 1 positive. The summation index has turned back up. The Dow was the leader today. The S&P 500 is short term overbought and closed above its upper Bollinger band. Money continues to pour into stocks. Still waiting on a decent trading signal. Might get one next week if we simply continue higher. Seems to be plenty of liquidity from somewhere. We'll stick with the technicals though. The S&P 500 is long overdue for at least some kind of selling. Tough to figure out when it simply remains overbought. Gold was up over twenty bucks on the futures. The US dollar was higher and interest rates finished flat. The XAU and GDX had fractional losses on heavy volume. Not exactly sure what to make of that but the gold shares didn't follow gold today. We expect resistance for GDX at 31.25 so perhaps the gold shares will take a rest here before attempting to get through that level. We do want to own the GDX calls on a break higher through the resistance. Still short term overbought on GDX. Mentally I'm feeling a bit tired. The VIX finished just a touch lower after being below its lower Bollinger band early on. Short term oversold for the VIX. You could make a case for a higher VIX tomorrow based on todays daily candlestick chart but we'll just wait and see how the week closes out. Remaining patient for now. Asia and Europe were higher last night following the US market after the Fed. We'll close out the week tomorrow.

The Fed chairman spoke and the market liked what it heard as the Dow climbed 401 points to a new record on average volume. The advance/declines were better than 3 to 1 positive. The summation index is trying to turn back up. The NASDAQ was the leader today and that's a plus. The Bollinger bands on some of the major indexes are getting tight which implies a big move in store. It appears that move will be higher. The S&P 500 set another new all time high and there is no resistance. Short term overbought there but that is nothing new. Nothing but good news for stocks at the moment. Not sure how long it will last but it's usually longer than you think. Gold was up $25 on the futures. The US dollar was lower along with interest rates. The XAU gained 4 1/2, while GDX soared almost 1 1/4. Volume was heavy to the upside. I did place an overnight order for the GDX April calls but it didn't come close to getting filled. It appears that I've missed this move for now. Longer term resistance for GDX now comes in at 31.25. We want to be on board with the calls if that resistance is broken. The short term indicators for GDX have turned back up but are not completely overbought yet. I'd expect to see some follow through buying there tomorrow. Mentally I'm feeling OK. The VIX was lower and dropped below the support of the 50 day moving average. The short term indicators are now moving down and not yet completely oversold. This implies more near term upside for stocks. Almost touching the lower Bollinger band on the VIX which previously provided a stopping point. With the Fed out of the way what will be the next market mover? Not exactly sure. We'll wait for a decent signal to try the SPY options but it may be a few days. Missing the gains for GDX today is not what we wanted but there's still plenty of time left in the April option cycle. Perhaps this is a move higher that we need to chase. Asia was higher and Europe mixed in last nights trade. We'll keep an eye on the overnight developments.

Continuing higher ahead of the Fed as the Dow gained 308 points on average volume. The advance/declines were better than 2 to 1 positive. The summation index is still in a sideways trend. We got yet another signal from the McClellan oscillator last night for a big move within the next couple of days and today validates that. The Dow was the leader today and that isn't the most bullish scenario. We cannot argue with price though as the S&P 500 closed at a new all time high. Still short term overbought here but not at extremes. We'll have to wait and see what the Fed has to say and the markets reaction. There seems to be no shortage of buyers at the moment. Gold was off a few bucks on the futures. The US dollar was higher and interest rates slipped a bit. The XAU fell 2 1/2 and GDX lost 2/3. Volume was better than average. The short term indicators for GDX have rolled over with plenty of room to go further. The question now it whether we wait for GDX to get all the way oversold or do we step in and try the April calls there if there's weakness tomorrow? Never easy in this game but we'll ponder the possibilities overnight. Mentally I'm feeling OK. The VIX was lower and closed on its 50 day moving average. This has been an area of support for the last month and a half. The short term indicators are pointing down with room to go which implies that higher prices are in store for stocks in the near term. However that won't happen if the 50 day continues to hold. Looks like we're at an inflection point on the VIX. Europe was higher and Asia mixed overnight. We'll see what tomorrow brings.

We had a gap higher at the open and spent the rest of the day moving sideways to lower as the Dow gained 75 points on average volume. The advance/declines were about even. The summation index continues sideways. The NASDAQ was the leader to the upside. Waiting on the Fed Wednesday as that should be the big mover this week. The short term indicators for the S&P 500 are now approaching mid-range as the continuious overbought condition is beginning to fade. Not sure exactly what it means going forward as the market has been quite resilient. No SPY trades in mind at the moment. Gold was up a couple bucks on the futures. The US dollar was higher and interest rates ticked up. The XAU lost 1 1/8, while GDX shed a little over 1/8. Volume remains good here. I still want to try the GDX April calls if we see a pullback in the gold shares. GDX remains short term overbought though. Mentally I'm feeling OK. The VIX was just a touch lower today. The indicators here are mid-range so it could go either way here. Not sure what to expect next but we'll keep an eye on it. We've rolled into the April option cycle and premiums are high. Waiting on a signal for the SPY options. We'll probably let the Fed get out of the way and go from there. Asia up and Europe lower to begin the week. We'll keep watch on the overnight developments.

The selling continued as the Dow was off by 190 points on expiration heavy volume. The advance/declines were slightly positive. The summation index is moving sideways. The NASDAQ led the way lower. Technical conditions have changed as the short term indicators for the S&P 500 have now rolled over. I'm not sure if this is the beginning of a much needed rest or just another fake out before higher prices. The short term indicators for the NASDAQ have moved lower than the overall market. We'll probably know by next week after the Fed meeting where we're heading. For now we'll simply remain patient on the sidelines with regards to the SPY. Gold fell $7 on the futures. The US dollar finished flat and interest rates ticked up. The XAU had a fractional gain while GDX finished unchanged. Volume was average. GDX remains short term overbought. If we see a decline in GDX next week I'll most likely try the calls there again. Mentally I'm feeling OK. The VIX was higher early on but finished unchanged. The daily candlestick chart there appears to be heading lower which would be bullish for stocks. The short term technical indicators for the VIX are back to mid-range. Moving now to the April options cycle with an extra week in the time frame. Premiums are high. Hopefully after the Fed we'll have a better idea of where we're heading. I'll be going over all the charts as usual this weekend. Europe and Asia were lower to close out the week. It's Friday afternoon and time for a break.

Option expiration gyrations today as the Dow fell 177 points on good volume. The advance/declines were 4 to 1 negative. The summation index is now back to a sideways movement. The inflation data was hotter than expected but we actually opened a bit higher before selling off. The day would of ended up worse but we got the last half hour buying spree again. The Dow led the way lower and that's not the worst case scenario. The TRAN did get whacked though. The S&P 500 is still short term overbought and now in a sideways configuration. We're on the sidelines with regards to the SPY options for now. The April option cycle has an extra week in it so the premiums are high. Gold was off another dozen or so on the futures. The US dollar was higher along with interest rates. The XAU dropped 1 2/3, while GDX shed over 1/3. Volume was average. GDX remains short term overbought and we'll need to see that condition change before attempting the April calls there. Markets rarely cooperate with our best laid plans. I'll try and remain patient with GDX here as we have a Fed meeting meeting next week. Mentally I'm feeling OK. The VIX was higher today but off from the best levels on the session. I'm not sure where it goes from here but the 50 day moving average seems to be the level of near term support. Expiration Friday on the docket. Would not be surprised if the SPY finished tomorrow around where it is today. At least that is what the open interest is perhaps telling us. We'll let tomorrow pass and take it from there. Asia was mixed and Europe generally lower last night. We'll close out the trading week tomorrow.

A quiet sideways session for the most part with a little volatility in the last half hour. The Dow managed a gain of 37 points on good volume. The advance/declines were positive. The summation index is still moving higher. Both the NASDAQ and the S&P 500 finished in the red with the NASDAQ leading the way. We did get a signal yesterday from the McClellan oscillator for a big move within the next couple of days. We'll see if that pans out tomorrow but that signal hasn't worked lately. The S&P 500 remains short term overbought. Inflation data tomorrow should provide a reason for market movement. I wanted to try the SPY March puts but there isn't a clear signal so I'm on the sidelines. We'll roll into the April option cycle there. Gold was up a dozen on the futures. The US dollar was slightly lower and interest rates were up a bit. The XAU gained 3 1/4, while GDX was up almost 3/4 making up for yesterdays losses. Volume was above average. GDX is short term overbought and staying that way. It appears that GDX is poised to run up into Fridays expiration but we'll see. I still like the idea of the GDX April calls but do not want to chase it here. However if there isn't a pullback soon I may have to change my mind. Mentally I'm feeling OK. The VIX was slightly lower today. Not sure what's next here as it closed on its 50 day moving average. An inflation surprise tomorrow will get things moving either way. If the numbers are in line most likely the market will move higher. But we'll let the market decide where it's going in the near term. Asia was generally lower and Europe generally higher overnight. We'll see what tomorrow brings.

The inflation data was a bit hotter than expected but the market didn't care as the rally continues. The Dow gained 235 points on average volume. The advance/declines were positive. The summation index continues to trend higher. The NASDAQ led the way up and that's a plus. The S&P 500 closed at a new all time high. It remains short term overbought as it has been for weeks and months. Not sure how long it can go on like this but obviously it's longer than we think. Probably will not attempt any SPY trades before the end of this option expiration week. Only possibility would be the SPY March puts ahead of Thursdays inflation reoport. But we see that idea would have been a loser ahead of todays CPI data. Gold took a breather as the futures were off over $25. The US dollar ended around unchanged after being higher early on. Interest rates were up. The XAU fell 1 7/8 and GDX lost over 1/2. They did finish up from the worst levels on the session. Volume remains above average here. The gold shares remain short term overbought and are due for a rest. I still like the GDX April calls as the next trade but will try and wait for some more pullback before trying this idea. Money has been pouring into this sector so we have to believe that the rise is the start of something real to the upside. I could be wrong. Resistance at 31.5 on GDX so we should at least make it up to that level on this move. Mentally I'm feeling OK. The VIX was lower today and the short term indicators have now rolled over. This implies more upside in the near term for stocks. We'll see. Perhaps we are just witnessing the positive expiration bias in play. Whatever the case you cannot argue with price. Asia was generally higher and Europe was up in last nights trade. We'll keep an eye on the overnight headlines.

A mixed bag to begin the week as the Dow rose 47 points on average volume. The advance/declines were about even. The summation index is trending up. The Dow managed a gain today but both the NASDAQ and S&P 500 finished in the red. Awaiting tomorrow inflation data and we should move off of that. The S&P 500 remains short term overbought but not at extremes. I did not purchase the SPY March puts today as we don't have a clear techincal signal to do so. Not sure what to expect from the data tomorrow but would not be surprised if it comes in worse than expected. Just a guess there. Gold finished up a couple bucks on the futures. The US dollar was a bit higher and so where interest rates. The XAU gained 2 2/3, while GDX added another 1/2. Volume was pretty good once again. GDX remains short term overbought and staying there. Money left on the table as I sold the GDX March call position too soon on Friday. We'll wait for a pullback to try the GDX April calls. There is a two year down trend line at 31.5 that should provide resistance if GDX gets there. Mentally I'm feeling OK. The VIX was up today but down from the highest levels on the session. Getting to short term overbought on the indicators but not there yet. Don't know what to expect from the VIX tomorrow. Four days left in the March option cycle. Do we dare attempt another trade before the weekend? We'll have to see how the technicals line up. Asia was mixed as Japan got whacked and Europe generally lower to start the week. We'll see how things go tomorrow.

It was a one day reversal to the downside today as the market opened higher and closed lower. The Dow fell 62 points on average volume. The advance/declines were slightly positive. The summation index is now moving higher and out of the recent sideways channel. The jobs report came in better than expected and the market liked that. As the day wore on we had a bout of selling followed by another rally attempt before rolling over again into the close. The NASDAQ led the way down and that's a negative. The S&P 500 remains in short term overbought territory but the indicators appear to be rolling over again. However every time this has happened in the past two months buyers have reappeared. The longer term up trend line is still intact on the S&P. I still might try the SPY March puts ahead of Tuesdays inflation data but that's a decision to be figured out over the weekend. Gold was up about twenty bucks on the futures but off of the best levels on the day. The US dollar finished almost unchanged after being down early. Interest rates bounced both up and down during the session only to finish about where they started. The XAU had a fractional loss while GDX was unchanged. Both finished off of the highs for the session. Volume picked up and was good once again. I sold my GDX March calls but not sure if that was the right decision. Gold and the gold shares are due for a rest, the question is when. The gain was a little over 1000%. In plain english this trade returned better than ten times the amount traded in a week and a half. The entry was spot on but we'll have to see about the exit. However as always win or lose we move on from here. I'm considering the GDX April calls now if we see some sort of pullback in the gold shares. Mentally I'm feeling OK. I don't want to get too excited over the last trade because it means nothing now and you've always got to be moving forward in the game. The VIX was up today but off of its highest levels. The short term indicators still have room to go in either direction. Not getting a good feel for what will happen with the VIX next. Only a week left in the March option cycle. We'll check the charts over the weekend and try to come up with a profitable idea for next week. Plenty of data out highlighted by the inflation reports on Tuesday and Thursday. Asia was up and Europe generally down to close out the week in the foreign markets. It's Friday afternoon and time for a break.

I thought today might be a wait and see session but the market isn't waiting for anything as the Dow gained 130 points on average volume. The advance/declines were over 2 to 1 positive again. The summation index appears to be breaking out of the sideways channel to the upside. The overall market was much stronger than the Dow with the NASDAQ leading the way. A new all time high for the S&P 500 as it remains short term overbought while hugging its upper Bollinger band. The trend is still up in an overbought environment. We'll see what kind of reaction there is to the employment numbers tomorrow. Gold continued its ascent adding $7 on the futures. The US dollar continued lower and interest rates were slightly down. The XAU rose 2 1/4, while GDX gained almost 1/2. Volume was a bit above average but less than it has been lately. Both gold and the gold shares had less volume today so perhaps this run higher is about to take a rest. My GDX March calls are still solidly in the black. I will be considering getting out of this trade before the weekend depending on the price action tomorrow. It has been a straight line up for the gold shares and that certainly won't last forever. We did not see the usual snap back to the broken trend line for GDX which let us know that the move would be stronger than normal and it has definitely has been that. Mentally I'm feeling OK. The VIX was barely lower today which doesn't really fit todays market rally. The short term indicators on the VIX are now mid-range so it could go either way here. Asia generally lower and Europe higher overnight. All eyes on tomorrows jobs report as we close out the trading week.

Bouncing back as the Dow rose 75 points on good volume. The advance/declines were better than 2 to 1 positive. The summation index continues sideways. The NASDAQ led the way but we certainly did not make up yesterdays losses. However the selling was met by buying once again and the longer term up trend line for the S&P 500 remains intact. Still short term overbought there but not as much as it has been recently. I would guess that tomorrow will be a wait and see session, with the employment data due out on Friday. Unless the Fed chairman says something different than todays testimony before Congress. I'm still thinking about the SPY March puts, perhaps next week. Gold was up a dozen on the futures. The US dollar was lower and interest rates held steady. The XAU was up 2 1/4, while GDX added 1/2. Volume remains above average on the gold shares but they did finish below the highs on the session. The gold shares are due for a rest as they have gone straight up for a little over a week. They are also trading above the upper Bollinger band. Not sure how much longer to hold onto the GDX March calls. They are still showing a nice profit. Again, the management of the trade is key. Still seven days to go in the March option cycle. Gold itself has broken out to new all time highs with no overhead resistance. The trading is never easy. Mentally I'm feeling OK. The VIX was barely higher today and that doesn't fit with an up market. Now I'm not sure where it's headed next. Europe and Asia finished higher overnight. We'll keep an eye on tonights headlines.

Sellers arrived today as we had a gap down at the open and kept going from there. A last half hour bounce kept things from being worse. The Dow fell 404 points on good volume. The advance/declines were negative. The summation index remains in a sideways channel. The NASDAQ led the way lower and that's a negative. Each time we've seen a drop like this over the past month or so it has never amounted to much of a decline. After todays price action the long term trend line for the S&P 500 is still intact. The short term indicators there have rolled over but will that actually mean something this time? Perhaps the negative RSI divergence will finally manifest itself as it has been the condition for the S&P although it does look like it was negated. Time will tell and we'll know by the end of the week. It's probably too late for the SPY March puts but we'll see. Gold continued higher as the futures rose $11. The US dollar finished flat again but interest rates dropped. The XAU and GDX had slight fractional gains on good volume. They both finished on the lows of the day and well off of their highs. The gold shares are due for a pause to digest the good gains over the past few trading sessions. Whether or not this is the top for this move remains to be seen but the gold shares are now short term overbought. The next technical expectation here would be a move back to the broken down trend line. GDX made it back to its 200 day moving average but was rebuffed. My GDX March calls are still showing a decent profit but today may have been the day to exit. Mentally I'm feeling OK. The VIX jumped today and that was expected given the markets decline. The short term indicators have turned up with plenty of room to go. The VIX implies that lower stock prices are on the way. Europe and Asia were generally lower overnight. We've got the Fed chairman in front of Congress tomorrow so we'll see how that goes.

We trended sideways for much of the session but sellers showed up in the final hour as the Dow fell 97 points on good volume. The advance/declines were negative. The summation index is still trying to move out of the sideways channel that is has been stuck in but todays price action probably won't help. Not sure what led to the late swoon but some profit taking or even outright selling is long overdue. The NASDAQ led the way lower but it wasn't a rout. The S&P 500 remains short term overbought on the technical indicators as it has been for weeks on end. I'd still like to try the SPY March puts at some point but the question is when. Gold continued its rally as the futures jumped thirty bucks. The US dollar finished flat and interest rates moved up. The XAU was up 4 1/3, while GDX gained almost 1 1/4. Volume was very heavy. Buyers have all of a sudden showed up for gold and I cannot pinpoint a reason why. The gold futures closed at a new all time high above $2100. The short term indicators for GDX have turned up with still some room to go. The short term down trend line for GDX was broken on good volume Friday and we continued up today. GDX closed above its 50 day moving average. Not sure how far and how fast this rally can go but we'll enjoy the ride for now. Needless to say our GDX March calls are showing a good profit for now. Mentally I'm feeling OK. The VIX was up a bit today which fits with the downside day. Still short term oversold here. We've got the Fed chairman before Congress on Wednesday and Thursday followed by the employment report on Friday. So there will be plenty of excuses for market movement this week. Not sure what to expect but we'll keep our eyes on things as usual. Asia was up and Europe generally down to begin the trading week overseas. We'll keep watch on tonights developments.

The buying continues on the 1st of the month as the Dow gained 91 points on good volume. The advance/declines were positive. The summation index is trying to break out above its sideways trading channel. The NASDAQ led the way and closed at a new all time high along with the S&P 500. The S&P remains short term overbought but the negative divergence on the daily RSI has now been negated. It was a signal that didn't work but luckily I didn't try the SPY March puts yet. Not sure exactly where all the liquidity is coming from but we won't argue with price. Waiting on a decent signal for the next SPY trade and it still could be the March puts as we have two weeks to go in the March option cycle. The gold futures took off to the upside by $38 and closed at a new all time high. The US dollar was lower and interest rates continue to drop. The XAU gained 3 1/4, while GDX added almost a buck. Volume was heavy to the upside. GDX has broken the down trend line in effect since the beginning of the year on good volume. That is bullish. The short term indicators still have room to move higher and are not yet overbought. Not sure why gold has all of sudden taken off but we'll take it. My GDX March calls are now showing a good profit. But with two weeks to go in the March option cycle, the management of the trade will determine whether or not it is successful. The weekly candlestick chart for GDX appears to have put in a triple bottom but we'll have to see where it goes from here. Mentally I'm feeling OK. The VIX was lower and closed below its 50 day moving average. The short term indicators on the VIX are getting more overbought. Not at extremes but getting there. We'll have plenty to ponder over this weekend as we go over all the charts. Asia and Europe were higher to close the week as money is moving into stocks around the globe. It's Friday afternoon and time for a break.