Powering higher to begin the week as the Dow gained 1104 points on good volume. The advance/declines were 4 to 1 positive. The summation index is now moving higher. The NASDAQ led the way as the major indices all gained over 2%. The S&P 500 was up just shy of 175 points. Most of the short term indicators there are now moving up with room to go. But inflation data is due out tomorrow, so anything goes. A high reading there could set the index back just as much as it gained today. It is still a tricky market environment in my view. Gold was up $76 on the futures. The US dollar was lower and interest rates were barely higher. The XAU was up 16 3/8, while GDX added around 3 3/4. Volume was good again to the upside as money is once again finding a home here. GDX closed above its 200 day moving average. Some of the short term indicators here are now overbought. The gold shares are due for a rest. Perhaps tomorrows inflation data will induce some selling. There is a longer term down trend line on the daily chart for GDX that began in March. That line comes in at 100. My GDX November calls are currently showing a good profit. The question now becomes when to sell them. Still nine days to go in the November option cycle. This has been a trade that was dead in the water and has somehow made it back to being profitable. I don't want to leave gains on the table and I also don't want to turn this trade back into a loser. There's always plenty of decisions to make in the management of a trade. Mentally I'm feeling OK. The VIX was down big today and closed just below thw 20 level. Some of its short term indicators were down big as well. For me volatility still remains a concern in the near term. It is one reason not to get too complacent just because we had a very positive session today. The market will tell us things if we are good at listening. Europe and Asia were higher to start the week as well. We'll see how markets react to the inflation numbers tomorrow.