The Dow was up 20 points on good volume. Advance/declines were negative. We are overbought but there is no reason we can't stay that way. However the overall market hasn't kept up with the Dow here. Sooner or later, somethings got to give. We crossed 14000 and I thought they would do what they could to close above there. It didn't happen. There are some earnings that came in after the bell and the market is selling off after hours. It's possible that a bull trap has formed on the indices. It is too early to tell. It sure looked like a valid breakout when we left the trading range. Gold was little changed and so were the gold shares. The inflation data was mixed. The dollar didn't do much either. We have either formed a short term top in the XAU here or it is a pause before we head higher. It's overbought and I'd like to see a pullback to get long but the market doesn't usually do what you want. GE continued higher and it is overextended. The daily chart has pushed through the upper Bollinger band and is still climbing. You can't plan on that happening very often. The volume is good though and it usually portends good things for the overall market. GE also is probably experiencing a bit of expiration levitation. Of calls the calls I had are worth more then I sold them for but holding them this long was not the plan. Perhaps it should have been. Mentally I'm feeling OK. Sometimes one of the toughest things to do in the game is to remain patient. You don't always have to be trading. Pick your spots. To do this though, there are times when you have to step aside and wait for a decent set-up. I am trying to do that now. We'll see what happens. Tomorrow I have to leave the markets early for an outside commitment. The post will be early or late or maybe not at all. It is the summer...

The Dow gained 43 points on average volume. Advance/declines were 2 to 1 negative. Which was strange but it is options expiration week. We are pushing to 14000 on the Dow. Inflation data is out the next 2 days. I don't think we will see much on the consumer side. Not sure about tomorrows producer number. Gold lost a buck today and the XAU shed 1 1/2. Both ABX and NEM lost some ground and the volume was decent. I am looking at the calls there. GE was up about a half today and that helped the Dow. Volume there was OK but we are really getting extended in that issue. I'm not looking to short GE but it is due for a rest. That said, it's also possible that it could get one last rise in expiration week before it takes a rest. But that's a guessing game. Mentally I had a good nights sleep and have a general idea of what the next trade will be. Whether or not the markets cooperate is another story. There are a lot of earnings coming out this week and we haven't seen the usual summer doldrums yet. Perhaps we won't this year...

The Dow tacked on another 45 points on average volume. Advance/declines were slightly positive. We got some follow through and that was to be expected. Gold was off a buck today and the XAU gained about a third. ABX was up a touch on light volume. NEM was up a third on good volume. The gold shares are due for a rest, perhaps next week. GE was higher, at one point up over a dollar. It closed up a half on very heavy volume. I dumped the calls I bought yesterday but it wasn't a good trade. About 15% overnight but it wasn't worth the risk. I think I only did the trade because the market was up big yesterday and I wanted to get something for myself. True, the earnings were coming out and I expected it to rise but it wasn't the type of trade that I normally look for. The risk in these type of trades is just way too high. If you are wrong you can easily lose 50% or more overnight. I will try and stay away from such trades in the future. Yes, it is nice to be paid for paying attention but the gains are only worth it if you're trading big sums of money. And these types of trades aren't worth committing huge sums of money to. You always have to protect yourself from yourself in the game. Stick to the game plan. Mentally I was up early just to scalp the GE trade and therefore was not as alert the rest of the trading day. Expiration week is coming up. For now it's the weekend but there is work to do going over the charts and coming up with the next trade for August. However I will take a break as it is needed...

The Dow broke out to new all time highs today, up 283 points. Advance/declines were over 2 to 1 positive and the volume was heavy. We have broken out of a multi-week consolidation in the indices and will be going higher. In retrospect, Tuesdays sell-off was the end of the selling. It got rid of all the rest of the sellers. The same thing happened in the gold shares 2 weeks ago. Speaking of which, the XAU was up almost 5 points today. Gold itself was up $6. ABX was up 80 cents on good volume and even NEM was higher. The volume on NEM was extremely heavy today as it rose almost a buck. I think it might be ready to take out that weekly downtrend line soon. I am looking at the August calls there now. However, the relative strength remains with ABX. If we ever get a pullback there, I'm long. Perhaps next week but the way this thing has taken off, who knows? GE wasn't moving with the overall market early on. The earnings are out tomorrow. Late in the day it started to move higher. I bought some July calls. This is another short term scalp trade that I really don't feel comfortable with but I did it anyway. The market should follow through tomorrow to the upside and I'm thinking that GE will lead the way since it didn't do much today. I could be wrong. I did not put a lot of money in this trade because the risk is so high. If it doesn't work, I won't be surprised. But with the market moving like this, tomorrow should be a good day for the bulls. We'll see what happens. Mentally, I am feeling a bit frustrated for not catching the gold share move. I'm sure there will be another chance to hop on board in the next couple of weeks but I would already like to be there. I am also a bit tired due to not a good nights sleep. The summer is usually a slow time for the markets but that is not the case this year so far. We'll see what tomorrow brings...

The Dow came back 76 points today on average volume. Advance/declines were only slightly positive though. But we didn't follow through to the downside and that is a good sign for the bulls. I'm not looking to do anything with the OEX at this point. Gold was off a couple bucks and the XAU was basically unchanged due to strength in FCX. ABX pulled back a little but not enough for me to buy the calls. Volume there was decent. NEM got slammed again, down a buck on heavy volume. I thought we would get through the long term down trend line in NEM after last weeks positive action. But we have come right back down and that line remains in effect. GE was up today, 35 cents on good volume. The July calls did not get cheap enough for me today as we were down in this issue early. I think this is a trade that could work though with the earnings out on Friday. We held today right at the short term up trend line. Perhaps I will get some calls tomorrow but it really isn't my trading style. It would be another short term scalp type of trade. We'll see. Mentally everything is the same. I'm somewhat skeptical of todays rally but with expiration week coming up, the bias is to the upside. The only thing I have a firm conviction for are the gold calls. The rest is just too risky at the moment in my opinion. However that doesn't mean that I won't buy those GE calls tomorrow...

The Dow dropped 148 points today on heavy volume. Advance/declines were 3 to 1 negative. I expected a pullback but not like this. There were a couple of stock earnings warnings, Big Ben gave a speech and the sub-prime lending woes resurfaced. The summation index might be turning down again. I was looking at perhaps getting the GE calls for July. GE was off 3/4. It is getting oversold. If the earnings are decent on Friday, the calls might work. But a day like today kind of throws me for a loop. So I will probably stay on the sidelines there. Gold gained a couple bucks and the XAU was down a half. ABX remained strong and was up a bit on the day. NEM on the other hand was down 80 cents. The relative strength is with ABX. The fact is that the gold shares did not follow the market down as much today as it has in the past. Money is flowing into the gold shares. For whatever reasons. I think there will be money to be made on the calls for the gold shares. Even though they have had quite a nice run here. I will be getting long on any pullback. And who knows? Maybe I'll give GE a try. Mentally I feel OK, plenty of sleep last night. I am a bit concerned about today though. Perhaps there is a triple top on the indices. The overall market was weaker then the Dow today also. The last rally we just had wasn't good on the volume front. I thought we were going to new highs and we still could depending on how the rest of the week plays out. We'll have to see what kind of downside follow through we get tomorrow...

The Dow gained 38 points on average volume. Advance/declines were slightly positive. The overall market was weaker then the Dow. I'm pretty sure we are going to see a pullback here. I think we need a little rest before we move to new highs. That's my guess at the moment. Gold was up $7 today and the XAU rose another point and a half. The XAU has pretty much gone up in a straight line here and that can't last forever. I do think you can get long on a pullback and I most certainly will. There is money coming into the gold shares in a big way. NEM did not get the follow through that I was expecting. It ended up a quarter on good volume. It did better early in the day and that is when I dumped the calls purchased on Friday. This was a short term scalp type of trade that I really don't normally do. My entry could have been a lot better. But if you could make over 20% on your money every weekend, you would do it too. However opportunities like that don't show up every weekend. ABX rose a half on heavy volume. I think my next trade will involve August calls of that issue. We'll see. GE didn't do much again today. Earnings there on Friday. I'm tempted to buy some cheap out of the money calls but probably won't. I did look at some OEX puts today but I really think if we get a pullback, it will be short and shallow. Mentally I'm feeling OK. A bit tired but I have an idea of what I'm going to do. I really don't trade to just make 20% as the NEM trade just realized. So I'll be keeping an eye on things and see what the market has to say in the next 2 weeks before expiration.

The Dow rose 45 points today on light volume. Advance/declines were positive. The employment number was a bit stronger, interest rates rose a bit but we continued higher. We are due for a rest here. The market is overbought and I expect weakness early next week. That might set up for some OEX July calls. Maybe. The gold shares went crazy today. The XAU rose 4 and change on heavy volume. Gold itself was up around $4. There was positive news on NEM and it was up over $2 on extremely heavy volume. I bought some July NEM calls. This is probably going to be a quick trade for the expected follow through on Monday. The heavy volume tells me that institutions are loading up and this issue will go higher. We are now at a multi-week downtrend line that has lasted at least a year. My feeling is that we are about to break through and it could be next week. There are 2 weeks left on these options but I don't think I will be holding them that long. I will most likely exit on Monday and look to buy August calls if and when the gold shares pull back. If the overall market declines next week it should take the gold shares with it and that will possibly give me a chance to position for the August calls. But make no mistake, the volume came in the gold shares today and they are going higher now and in the future. That's my guess. GE was unchanged really and the volume was light there. However I am concentrating on the gold shares at the moment so GE is on the back burner. Mentally I'm doing OK. I think I am on to something profitable and that always puts yourself in a better frame of mind. I'm not what you'd call a "goldbug". I am just looking for what I perceive to be opportunities and trying to take advantage of them. My hope is that paying attention on a summer Friday will pay off...

The Dow lost 11 points on light volume. Advance/declines were negative. The overall market was better then the Dow. We sold off and came all the way back. This market has the feel of one that wants to go higher. Interest rates rose and the market held up pretty well. We'll see about the employment report. Gold was down around 4 bucks but the XAU continued to rise and was up 1 1/2. ABX gained a half. The volume here was light but the trend is up. In retrospect perhaps I should have chased this one. I still might pick up some calls if it ever pulls back. Gold was down, the dollar was firmer, interest rates rose and still the gold shares went higher. GE was down a little and the options are still too expensive for me. Mentally I'm a bit tired as I did not get a good nights sleep. I'm also frustrated for missing the ABX trade. But you have to move on. I was also thinking about getting some OEX calls but might wait until next week. There isn't a clear signal of overbought or oversold there. We're slightly overbought but not in the range of where I'd be looking at the puts. and so it goes...

In a holiday light volume session, the Dow gained 42 points. Advance/declines were positive. We are now slightly overbought but can stay there if the rally is for real. I do think we are going to new highs. Gold lost around 4 bucks today but the XAU only dipped slightly. I did have an overnight order in for the ABX July calls but it wasn't filled. The volume was light there as well. I'd much rather own the August options but they have moved away from me. I'll have to check the charts again tomorrow. GE was up about a third today. Again, the problem here is that we are in a holiday mode and the volume has dried up. The employment report is out on Friday and that should at least bring out some more money one way or the other. Mentally I'm doing OK and will be taking a break tonight into tomorrow afternoon. Not much else to do but enjoy the 4th...

The Dow rose 126 points today on summer Monday light volume. Advance/declines were 4 to 1 positive. We are going higher here most likely. The summation index has now turned to the upside. We will probably set new highs this month. We are getting the beginning of the month buying spurt. Tomorrow the markets will be closing early. If the market doesn't drop when we get terrorist attacks, it is going to go higher for whatever reasons. Gold was up 8 bucks today and the weekend overseas bombing had to help. The dollar was weaker today also. The XAU was up over 3 points and ABX tacked on another 3/4. Volume wasn't that great but it is the summer and a holiday week. I am thinking of getting the July calls for ABX at this point but it has moved pretty good since I was looking at it. I do not like to chase things but this could be one of those times when I do. We are not seeing any type of pull back in ABX. My thought here is that there are just no more sellers. It's risky, yes, but it just might pay off before expiration. We'll see. GE was basically unchanged and you would have liked to have seen it participate in a 126 point up day. The July calls still have a lot of premium in them. I'm on the sidelines there. Earnings are out at the end of next week. Mentally I'm feeling fine. What I need to do now is look for things to get long because higher is the way we are going. However with the holiday in the middle of the week, it skews things. Employment report out on Friday. Usually it is a big mover but it is summertime.

The Dow lost 13 points on average volume. Advance/declines were about even. We started out up 100 then sold off in the last hour to down 100 and came back to finish where we did. It was the end of the month and end of the quarter gyrations. I think we are getting to an intermediate term oversold condition. I'll check things over the weekend but that is my thought at the moment. However the summation index is still pointing down. Gold didn't do much today but the XAU rose a point. ABX was up a quarter. I had an order in for the August calls and it wasn't filled. I am hoping for some type of pull back in this issue next week. We did sell off in ABX in the last hour but the options barely moved. It moved with the market which got a little crazy in the final hour. My feeling is that this trade will work if I can enter at a reasonable price. GE continues higher. No trade there for me at the moment. Mentally I'm a little tired, did not sleep well last night. It's the weekend and I'm a little frustrated about not getting the ABX calls earlier this week. But I've got to move on and go from here. Perhaps I'll get a chance next week or maybe I will just have to pay more for them. We'll see. I would expect next week to be pretty quiet but who knows? I think July 4th usually has a positive bias. For now I'll take a break and check the charts over the weekend...

The Dow ended down 5 points today on average volume. Advance/declines were positive. When it was all said and done we really didn't resolve anything today. We were up 60 points but couldn't hold on. That's not a good sign. End of the month tomorrow. We'll see if the volume picks up. Next week is a holiday week so I would expect things to remain light on the volume front. Gold was up over $5 today but the XAU was flat. ABX was up about a dime on good volume. I canceled my open order for calls there. If it heads back down I'll probably try again. GE was flat on average volume. I'm looking at the calls before the earnings report due in early July. However there is a lot of premium in the options so this is a trade that will have to set up perfectly for me to take a risk there. Mentally I'm still a bit tentative about what the market is going to do here. The summation index is still pointing down but the McClellan oscillator has turned up. Perhaps we are just going to move sideways and remain in a trading range. That's a guess. Earnings season will begin soon however I have no idea what that will bring. So I'm kind of in a spot where things aren't so clear for me at the moment. I'll just have to remain patient and wait for a decent signal one way or the other. It's all part of the game...

The Dow rose 90 points today on heavy volume. Advance/declines were 3 to 1 positive. The Fed announcement is actually tomorrow. It's not usually on Thursday. We have broken the downtrend line that has ruled the indices today. Tomorrow is important. If we follow through to the upside , then I think the downtrend is over. The double top theory will be wrong. But if we head back down strongly, the double top theory probably will work. That's my guess at this point. Gold was little changed but the XAU rose over 2 points today. ABX was up about a half on good volume. It, along with the other gold shares, opened lower and finished higher for a one day reversal. I did have an order in for some ABX August calls but it wasn't filled. I'm leaving it open in hopes of getting filled. I'm looking for a bottom to form here in ABX and hopefully that will take a few days and it will move sideways. Perhaps the low was put in today. Time will tell but this is a trade that I'd like to try. GE was lower all day and closed about unchanged. I might try the July calls here if we test $37.50. We almost got there today but didn't. There is still a lot of premium in these option for July, probably because the earnings will be announced during this cycle. I'm keeping an eye on it. Mentally I did not get a great nights sleep but I'm feeling OK. We are at what I think is an important juncture right now. If the market holds here, then I will be back in the camp that we hit new highs this summer. If we roll over again now then I'll be a double top believer. We'll see...

The Dow lost 14 points today on heavy volume. Advance/declines were about 2 to 1 negative. We were higher again today but could not hold the gains. There is liquidation going on. The overall market was weaker than the Dow again. We might get a buy signal in a couple days if the weakness continues. We will have to get through the Fed announcement tomorrow first. Gold got hammered, down almost 10 bucks today. The XAU dropped another 3 1/2 points. ABX was down again on heavy volume. I suppose I'm glad I held off on the July calls but I am about to try and buy the August calls. When nobody else wants something, that's when I want to buy it. I'm going to put in a limit order. GE is still holding around $38 but the calls are still expensive. I'll keep an eye on them. Mentally I'm a bit tired, not a good nights sleep. The market is acting different here also and that weighs on my mind. Another thing that troubles me is that gold could really be breaking down now and then buying any of the calls won't work. But you have to take some risk to make some gain sometimes. The technicals there are oversold also. So we'll see what happens...

Just 5 minutes to go in todays volatile session. We are down about 15 points on what looks like good volume. Advance/declines are 2 to 1 negative. We were up around 130 points and down around 40. There is something going on here but I don't know what. I suspect some hedge fund trouble. I'm on the sidelines until a decent signal appears or I can figure things out. Like I said before it is possible that a double top has formed on the indices. Gold was down a couple bucks today and the XAU dropped 3 points. ABX was down 80 cents and led the gold shares lower. I am still thinking about getting the calls here but might wait to go out to August. We'll see. GE got down to the target of 38 but the calls were just too expensive for me to bite at. It will be interesting to see if GE can hold here. It might possibly be a clue to the overall market. However at this juncture, with the summation index pointing down, the trend is down. The Dow ended down 8 points with the overall market weaker than that. Mentally I'm feeling good with a lot of sleep last night. However the markets are very unpredictable at the moment. Toss in a Fed announcement on Wednesday and the end of the month on Friday. So things are very difficult to figure for me at this time. I do think I will try a trade in here at some point. I just don't know what...

The Dow lost 185 points on very heavy volume. Advance/declines were 3 to 1 negative. The summation index has rolled over and the trend is down. I have no reasons for the decline but my belief is that we are going to set up for a summer rally. But I'm not so sure as I was before. There is a possibility that we have put in a double top in the indices. The measuring objective for the OEX would be 660. Time will tell and I'm really not sure as I haven't been able to figure things out lately. Gold was up over $2 but the XAU fell 3/4. ABX continues to rise despite the market. It was up slightly today on good volume in a down market. I get the feeling that something is going on here but I certainly don't know what. The relative strength stands out and I do want to get the calls if it ever pulls back. Perhaps I will get a chance next week. GE was down today and the volume was pretty good there. It is almost back to the breakout point at 38. I would like to get the calls there but the overall market action has me worried. None the less, I am probably going to give it a try. Mentally I'm feeling fine with a good nights sleep. I am a little frustrated with ABX since I don't own the calls and it keeps moving higher. But there is nothing I can do about that at the moment. Like I said we'll see about it next week. The market action has me concerned because I did not expect such volatility at the beginning of summer. It is normally a slower time. So we'll see what happens. Fed meeting next week and I'm sure we will move off of that. For now it's the weekend and I will try and relax for a couple of days...

The Dow rose 56 points on good volume. Advance/declines were positive. There was no follow through to the downside and that is constructive going forward. There is some volatility here which is surprising to me. I don't have a good handle on what is going on right now but I am looking for higher prices down the road. GE was pretty much unchanged and I'm hoping it returns to the breakout point. Gold was down over $5 today but the XAU rose 1 1/2. This, I cannot figure out. Perhaps it is still following the overall market. The dollar was higher too. When things don't follow their usual patterns I tend to pull back. ABX was higher and I would really like to get the calls there. But I'm confused as to what is going on here. I think that I will wait until next week to attempt any kind of trade. Mentally I feel fine and got a good nights sleep. I would expect tomorrow to be a slow get away Friday in the summer. But who knows? Trading can be frustrating at times and that is the spot I'm in at the moment. Without a clear idea of what's going on, it's best to step aside. I do want to make a trade for the July cycle but I need a decent signal to get involved. So at this point it's a waiting game...

The Dow lost 146 points on heavy volume. Advance/declines were 3 to 1 negative. I must say I was expecting weakness but not like this. The summation index has probably rolled over again. I don't know exactly quite what to make of it. Bond yields rose and there was some negative Bear Stearns chatter. But I'm not sure what is going on yet. I don't expect some big decline here but I could be wrong. Time will tell. GE lost ground on good volume today. If it falls back to the breakout point, I will consider getting the calls for July. Gold lost almost $5 today. The XAU shed over 2 1//2. ABX held up rather well, only down around a quarter. I guess I'm not in a hurry to buy the calls here. I'm thinking at this point that I will go out to August. But I'm not completely sure. Mentally I'm doing OK but I am surprised by todays very negative action. There is perhaps a bigger double top forming in the indices. It's just too early to call at this point. I'm really looking for prices to hit new highs this summer. But I could be wrong and usually am. We'll have to see what kind of follow through we get tomorrow. And here I thought the summer doldrums had started...

The Dow was up 22 points on average volume. Advance/declines were positive. GE was the story of the day as it rose over a buck on very heavy volume. So it looks like I've missed that but you never know. The volume was extremely heavy in the out of the money nearest call. Perhaps that will be the play but it is overextended at this point. Trading can and is sometimes very frustrating. Gold was up $5 and the XAU rose a point. ABX was up on good volume as well as it gained a half. I would like to see ABX pull back a bit but it looks like the money is starting to come back into this issue as well. I don't want to chase it. Getting back to the overall market, I think we could be in for a pause soon. We are short term overbought. I don't think it's worth trying to buy puts for. Perhaps it will give a chance to purchase some OEX calls but there are so much time left on the July options that I feel the sidelines are best for now in the OEX. I could be wrong and often am. I think I will focus on ABX for now and see if I can get some calls there. We'll see. Mentally I'm feeling OK I guess. I would have liked to have gotten those GE calls, I can tell you that. But you have to just keep going in the game. It certainly won't wait around for you...

20 minutes to go in todays session. I am posting early due to after market commitments. We're down about 20 points on the Dow. Advance/declines are about even and the volume is light. Summer doesn't officially start until Thursday but it's begun on Wall Street. We've been in a tight range all day and things are really going nowhere today. The stocks that I'm looking to trade, GE and ABX aren't moving much at all. There are 5 weeks in this option cycle, so there is no rush by anyone to do anything at the moment. So you have to take that into consideration when forming ideas to trade. Gold was up around a buck today but it is really a ho-hum session. The dollar was lower. Mentally I'm feeling fine and am looking to trade something this cycle. But I can't push things. I do want to get some calls for GE and for ABX if the situation warrants it. I think at some point it will. I also have a feeling that we might see 14000 on the Dow perhaps this summer. That's just a guess. There is some housing data being released tomorrow but it is a light week for economic reports. Still down around 20 with 10 minutes to go...

The Dow was up 85 points on good volume. Advance/declines were 3 to 1 positive. The CPI was viewed as benign. The June option cycle has ended. The market just seems like it wants to go higher here. GE had a good day and the volume was heavy. I do want to own some July calls there but will wait for a pull back. Hopefully that will occur but it may not. Gold was up a couple bucks today and the XAU rose over 2 points. I believe that this is just following the overall market. I haven't gotten the solid buy signal for gold that I usually see. ABX rose almost 75 cents today on good volume. I would like to get some calls here also but it just isn't as strong a buy without the gold signal. The dollar was weaker today which probably helped the gold shares but it didn't do much for the metal itself. So there are mixed signals here and I will have to check things over the weekend. The dollar has stalled at 83 which was the original target for the end of the so called rally. We'll see what happens. Mentally I'm feeling fine. Summer officially starts next week and I expect things to slow down in the market. There will be money to be made however there will most likely be a lot of days where nothing happens. It is a time for vacations and relaxation. This has to be taken into consideration when trading options. It will not be easy. So for now it's time to take a break on the weekend...

The rally continued today with the Dow up 71 points. Advance/declines were about 2 to 1 positive but the volume was light. Producer prices came in a bit higher then expected but it didn't faze the market. Consumer prices tomorrow. I did want to get some OEX puts for the CPI tomorrow but the risk is way too much. I will just have to be patient and wait for a decent signal. I had my chances this cycle, just did not exploit them. Gold was up $3 and the XAU rose a point and three quarters. Again, mainly due to FCX. The dollar didn't do much today. There isn't a buy signal on the gold shares and it looks like it could be a while before there is one. Mentally I'm feeling good. Even though I didn't make any trades this option cycle, my thinking was in the right direction. I have to continue doing the work and keeping an eye on things. I feel good going forward. My next trade that I'm thinking about will be GE calls for July. I think the overall market is going to head higher and GE will go along for the ride. I do feel the market will take a rest next week and perhaps I will be able to purchase the calls then. We'll see. It also looks right now that we will hit new highs for the indices over the summer. The summation index has not turned around yet but I believe it will shortly. Also interest rates have spiked higher here lately and that is not sustainable. So as rates come down a touch the market will begin its summer rally. That is my guess today, as always subject to change as market events unfold.

The Dow soared 187 points today on good volume. Advance/declines were 4 to 1 positive. It was an up day from the start. I didn't get any OEX calls since there was not any weakness early or after the Fed minutes. The Fed said all the right things in its release and the market took off. Producer prices tomorrow and I would expect the market to continue higher. It's the consumer prices that I'm not sure about. I doubt that I will be making any trades with just 2 days left in the cycle. I will say that I think the decline is over for now. We may drift lower next week but that's my idea at the moment. The McClellan oscillator got way oversold again yesterday and we are bouncing. We also stopped at the 50 day moving average. We'll see. Gold was little changed but the XAU gained almost 2 points, mainly due to FCX. No trades there for now. The US dollar got to 83 today and that was my target. It is right at a multi-week down trend line that has been in effect a long time. There is a chance we could go to 84 but that would be it. With bonds very oversold here it would not be a surprise for the dollar to stall here. But that is just a guess. Mentally I'm a bit tired. But I'm feeling good about what the market is doing here and I think I'm kind of getting a handle on it. I'm now looking to July calls for the next trade. Perhaps GE but I will look things over this weekend. That could all change if we get some high inflation numbers in the next 2 days. I'm guessing Friday, if at all. We'll see if we get some follow through to todays big move...

The Dow lost 130 points on good volume. Advance/declines were 7 to 1 negative. The market headed lower from the beginning. I had an overnight order in for some OEX puts but it wasn't filled so I canceled it. We were actually up about 20 points on the Dow at one point today. But the market soon started to decline and never looked back. The puts I wanted didn't get cheap enough for me but I suppose I just wasn't quick enough to buy them. We are near the lower end of the Bollinger band for the OEX and the 50 day moving average. I might try some OEX calls tomorrow if it sets up for me. But the risk is very high here now with only 3 days to go and important data coming out. Perhaps the sidelines would be the more prudent route. Gold lost 6 bucks today and the XAU dropped a point and a half. Really no interest here lately but I must say the gold shares have held up better then the metal itself. No trades here for now. Mentally I'm feeling good. I do think we are getting overdone here on the downside. That doesn't mean that we can't head lower but I think we will see a good pop to the upside in the indices before the week is out. I could be wrong. The summation index is still heading down and that isn't a bullish sign. However I do think that we are setting up here for a summer rally. It will take a while for a bottom to form but I am thinking right now that some July calls will be in order. I'll be taking another look at GE in that regard. So the Fed minutes will be released tomorrow and I think it will be a mover to the downside. If and when that occurs I will be looking at the OEX calls for a snap back on the PPI release Thursday morning. I do not think the producer prices went up that much last month. That is what my indicators show. But who knows?

The Dow ended up pretty much unchanged today on light volume. Advance/declines were about even. We were up about 40 points and down about 40 points during the day. However we sold off in the last hour and that's never really a good sign. I was looking at some OEX puts and would like to buy some. This will have to be a quick trade since we are in the expiration week and there are 4 days left. We have done a Fibonacci 62% retracement of the recent decline and started lower. My hope is that tomorrow we build in a little more of a short term top and then head down from there. That's just a guess. If we just head down from here then I'll look to get long near the end of the week. I would like to get in a trade this week. Gold bounced back 8 bucks today and the XAU gained a point. It didn't seem all that convincing to me but at least the decline has stopped for now. I haven't gotten the solid buy signal there yet and I don't know exactly when that will happen. It doesn't look like it's in the offing near term. The US dollar hasn't reached my target of 83 yet but it's close. There is a lot of talk about higher US interest rates lately which could support the dollar. However whenever something is widely known it has usually already been discounted in the market. If that's the case here then gold might be getting close to being interesting again. We'll see. Mentally I'm feeling fine, got a pretty good nights sleep. I'm getting somewhat anxious to make a trade here and I need to keep that in mind. The market will do what it does. I can't force myself upon it. However I think I've got a feel for what will happen here. If the market remains positive tomorrow, I'm going to short it. It won't be a long trade, time wise. We have inflation data out on Thursday and Friday. I think the Fed minutes release on Wednesday is going to be a mover as well. But the market isn't going to wait for me. The rollover today could already be the beginning of the retest of the low last week. It never is easy. There are many questions to answer this week. However there is money to be made.

Got a nice bounce in the Dow today, up 157 points on good volume. Advance/declines were 2 to 1 positive. I was sick last night and had to sleep in so I didn't buy any OEX calls. They didn't get a cheap as I would have liked but the trade was there. Where we go from here is the question. I think we will have to test the low. At least that is my thinking at the moment. There is a lot of data coming out next week so it could get volatile. I'm going to have to play it as it comes. It won't be easy. Gold got slammed today, down over $12. However the XAU managed to gain almost a point in sympathy with the overall rise today. It was either that or short covering. I don't see any trade there anytime soon. However the US dollar was higher today and we are getting close to my target of 83. Perhaps we will just blow through that and turn the overall trend in the dollar higher. That's just a guess. Mentally I'm really tired as I didn't sleep well due to something wrong with my stomach. This hasn't happened before but you need to be at your best to trade successfully. I think it was something I ate. The plan was to get up early and buy calls on weakness but I couldn't do it. Expiration week is coming up and I am sure it will be interesting. For now it's the weekend and I need to rest and get ready for Monday.

The Dow got clobbered to day, down almost 200 points. Advance/declines were 10 to 1 negative and the volume was heavy. Interesting. Declining volume was 10 to 1 over advancing volume also. There are no buyers all of a sudden. We are oversold and there will be a bounce. I may try and play it and I am looking at OEX calls here. We are just about at the 50 day moving average line and that should provide some type of short term support. So I might get some calls tomorrow but it is risky. Gold lost 10 bucks today and the XAU lost 4 and three quarters. The dollar was a bit stronger as US interest rates have gone higher recently. I don't have the signal for getting long gold just yet. It is also possible that we are not going to see it for a while if we break $650 on gold. The level I'm looking for on the US dollar is 83. That is where long term resistance from the weekly down trend line is. That will be the moment of truth for the dollar and hence, gold also in my opinion. Mentally I'm a but tired. Obviously it is a bit more taxing when the market is moving like it has this week but these are the times that can create opportunities. I'm not looking at GE calls anymore, the chart just doesn't look that promising. I do think the overall market will bounce here and that will be the next chance for a trade. Expiration week is coming and that usually has a positive bias. However that doesn't mean that it happens all the time. Today had good volume and perhaps it was a washout of sorts. I do think this decline is setting us up for a summer rally so I will be looking at July calls in some issues now. Also July has an extra week on the options which could bolster the call case. Or not. That's what makes the game such a challenge and difficult to say the least.

There is an hour to go today and we are down 150 points on the Dow. I have early afternoon commitments again and have to post early. Advance/declines are about 5 to 1 negative at the moment. The summation index has rolled over and is giving a sell signal. Needless to say the OEX puts would have worked out nicely. Gold didn't do much today but the XAU is down a point and a half right now. Needless to say it will be interesting to see how the markets close today. One of the reasons I did not put on a position early this week is because I knew I couldn't stay until the end of the trading day today. There is still time to make some money before the expiration next week. However the risk will be rising with each passing day. More tomorrow...

The Dow shed 80 points on average volume. Advance/declines were 3 to 1 negative. Big Ben had some kind of speech about interest rates that moved the markets. We were overbought so it wasn't a surprise. I did not get any OEX puts and it would have had to be a quick trade which isn't my strong suit. I am looking at getting long some GE calls but the chart doesn't look all that great. Perhaps OEX calls will be the play. I'll need to check the charts overnight. Gold was down around a buck and the XAU lost a point and a half. I can't really see gold doing anything here if interest rates aren't going down. But you never know. Mentally I'm feeling OK. I don't have any real firm ideas about what to do here but I'm leaning towards the long side for expiration week. After that, who knows? I think patience and prudence are the qualities that are needed here. I don't want to do anything just for the sake of having a trade on. However I would like to make some money. I've been a bit gun shy since the year hasn't been going too well so far. But I can't let that stop me from taking reasonable risk when the time arrives. My guess is tomorrow will be a sideways day, there just isn't a lot of news coming out.

About 20 minutes to go in todays session. The post is early due to after market commitments. Right now we're up 10 points on the Dow. Advance/declines are positive and the volume is light. I might try some OEX puts here but I'm not looking for some big type of down move. China sold off again overnight and it didn't affect things here, again. That said we are overbought and staying there but not in a decisive manner. It's possible that I will place an overnight order and see what happens. Gold was little changed today although the dollar was weaker. The XAU is currently down over a point. I'm staying away from there for now. Mentally I'm tired and haven't slept well lately. I cannot use that as an excuse for trading though. There are no excuses. I'm looking to do something here before expiration. At the moment, I'm thinking OEX puts for a short move. 10 minutes to go and we're up 14 points on the Dow. More tomorrow...

The Dow was up 40 points on average volume. Advance/declines were almost 2 to 1 positive. So on we go from new high to new high. Nothing seems to be able to stop this market. The trend is up and there is nothing to change that. We are short term overbought. I am thinking of getting some puts on any strength Monday for a short term trade. If we get a light volume rally I will most likely give it a try. Gold followed through big-time with a $10 rise today. The XAU was up over 2 and a 1/2 points. ABX and NEM rose on good volume. I will maybe try and get some gold calls on a pullback next week. I'm not sure. The dollar didn't do much today but there was some news about the European central bank capping gold sales. So I need to check things over the weekend and take it from there. I did not see the usual good gold buy signal in this move, so I'm a little leery of it. The economic data today also was a bit stronger than expected so there's not much chance of a rate cut anytime soon which would weaken the dollar. Mentally I'm trying not to feel bad about missing the gold move. I had been looking at it but the signal just wasn't there. Otherwise it's the weekend so I'll try and relax a little. GE was down a touch today and the calls don't look cheap enough for me yet. So it's on to checking the charts and perhaps some OEX puts on Monday or Tuesday...

The Dow lost 5 points on heavy volume. Advance/declines were positive. We did open higher but couldn't hold it. My thinking is that it was end of the quarter selling. We saw this in a big way last month. But that's just a guess. The GDP number was revised downward. Employment data tomorrow. The overall market was stronger than the Dow. Summation index has begun to turn back up. Gold was up $7 today and the XAU rallied big, up over 3 and 1/2 points. ABX and NEM were up on heavy volume. I think the move was in sympathy with the dollar. The weaker GDP was viewed as bearish for the dollar even though it didn't move much. I did not get the usual signal here to get long gold. Although the gold shares were oversold. So my thinking here is that this may not be a significant move in gold. I could be wrong. In fact, I could have missed it. Time will tell. One thing for sure, the volume was strong and it is hard to ignore that. Mentally I'm feeling fine with a good nights sleep. I'm still looking for a June cycle trade. Perhaps it will be some puts if we go higher tomorrow and Monday. I'm also looking at GE but the options aren't cheap enough for me. I am going to try and not force things here. If something sets up then by all means I will try and take advantage of it. It is never easy. I'm doing the work and keeping my eyes open. We'll see how the week closes...

The Dow rose 111 points today on average volume. Advance/declines were 2 to 1 positive. The summation index will turn back up today implying higher prices. You just can't keep this market down. The Chinese market tanked overnight and the Dow just shrugged it off after an early decline. I have no trades here. Getting short here doesn't make sense at the moment. Gold lost 4 bucks today but the XAU was up over half a point. The volume was average there. The dollar was higher today so it didn't make sense for gold to go higher and it didn't. The gold shares probably just went along for the ride with the overall market. No trade here either as there isn't a clear signal. The gold shares are trending down though. I'm looking for a buy point but it hasn't happened yet. I'm also looking at getting long GE here. I have to check the chart tonight. Mentally I'm feeling tired as I haven't slept well the past couple of nights. I would like to make a trade in the June cycle but nothing is standing out at the moment. We are back at the highs set last week and at the moment it looks like we are going to bust right on up here. Also we are on the cusp of the last day of the month and first 4 days of the new month positive money flows. I'll be checking the charts of the overall market later also. So there you have it. GDP report tomorrow and the unemployment picture on Friday. It really seems like it doesn't even matter what comes out, the market is going to move higher. We'll see...

The Dow gained 14 points on light volume. Advance/declines were positive. The market was higher, then lower and finished where it did. No trades for now there. Gold gained a couple bucks and the XAU lost about half a point. Volume was nothing special there either. The post is short today due to other commitments. Mentally I'm feeling tired however I might make a trade this week. More tomorrow...

The Dow was up 66 points on light volume. Advance/declines were over 2 to 1 positive. So, do we go on up from here to new highs? That is the question. The volume today was light. Was it because people got an early start on the 3 day weekend? Or is this the beginning of a light volume bounce the eventually leads us to taking out the recent low set yesterday? I don't know. I'm leaning towards that this is just a bounce. The summation index is still pointing down. Now I know this indicator hasn't worked lately but that can not go on forever. I'll check things over the weekend and go from there. Gold was up a couple bucks today and the XAU rose a point and a quarter. The charts here don't look too good. We are oversold on a short term basis. Most of the gain today was again the rise in FCX. ABX and NEM were both down on light volume. I'm probably going to stay away from the gold shares for now unless I see something compelling on the charts this weekend. Mentally I'm a bit tired as I didn't sleep well last night. I am looking forward to an extra day off this weekend. I was looking at MSFT and it bounced back today. I am looking to buy some puts there. I need to do a little more study though since this isn't an issue that I normally follow. I'm looking to get some OEX or SPX puts perhaps next week, if the market continues to rise on light volume. There are some economic reports coming out next week even though it is a short week. But for now it's the weekend and time to take a break...

The Dow dropped 85 points today on heavy volume. Advance/declines were 5 to 1 negative. So we rolled over here. How long will it last? I don't know. I do know we are short term oversold here. I expect a bounce within the next 2 days. It is what happens after the bounce that is key. At this point I don't think we will be going to new highs any time soon. I could be wrong. I might try and buy some puts if we get a weak volume rally attempt from here. The market will have to let me know what to do. Gold lost over $9 today and the XAU fell three and a half points. I think that the gold market is done for a while. Interest rates are heading higher here and the dollar is firming. It was interesting that NEM didn't go down today and the volume was extremely heavy again. I think there are takeover rumors floating around about this issue. I will have to look into it further. Perhaps some long term out of the money calls are needed. But perhaps not. The technicals have really deteriorated for gold at the moment. It might be prudent to just let that go for now and wait for a reliable signal. Mentally it's been a busy day. I have also had my eye on MSFT puts and today they doubled in value. I still might try this trade on a bounce. It appears that there is a potential double top on the weekly charts. The June 30 puts are the ones I'm looking at. I expect tomorrow all the real action will take place early before the 3 day weekend. Maybe some follow through from today and then a rally into the close. That's my guess but who knows?

The Dow lost 14 points on pretty good volume. Advance/declines were negative. Three days in a row we have tried to close at a new all time high for the S&P 500. Each time we have pulled back. I think we are going to roll over here. That's my guess. Greenspan was talking today and that was the reason we sold off supposedly. We were up almost 70 at one point. We'll see about tomorrow. Gold was up around $3 today and the XAU rose over 2 points. Most of the gain in the XAU was from FCX again. The gold shares really didn't move a lot. Good volume in NEM again also. I think the gold shares are just marking time here as the debate continues about gold itself holding up here. I mean I don't really know but we are not really seeing any trend for gold here. My hope is that we are in the process of forming a base, which could take a while. The dollar has stopped dropping for now and I think that is the basis for the recent action/inaction for gold. I haven't gotten a signal for the upside here yet either. Mentally I'm a little tired. I will probably not initiate any trades before the long weekend. I have no solid game plan right here or any viable ideas. At any rate, I think we will be down tomorrow but how long it lasts, if it does occur, is anybodies guess. Probably not for long in this liquidity driven environment...

The Dow lost 3 points on average volume. Advance/declines were slightly positive. The NASDAQ was stronger than the big caps today. The S&P 500 tried to close at an all-time high and pulled back again. No trades here for now. Gold was weaker today and the XAU shed 2 and a half points. We are really at a critical area in gold. If it doesn't hold up here it would be very bearish. The $650 to $660 area is key. My hope is that it holds but I have no idea. Mentally I feeling fine. No trades for now and I don't have any good signals. Patience is what is needed now and perhaps something will appear for the June expiration cycle. I will not try and force things here. If something comes up, I'll trade it. If not then I will just have to wait. There could possibly be a sell signal approaching for the overall market depending on what happens in the next few days. Time will tell.

The Dow lost 13 points today on heavy volume. Advance/declines were positive. The overall market was stronger than the Dow for a change. We were up most of the day but turned around in the last hour. We are short term overbought and did have quite a lot of volume without any overall movement by the close. Perhaps we are in for a drop but I've said that before. The declines have been very short lived. Gold was up a couple of bucks today and the XAU rose a point and a half. I think the gold stocks just moved up in sympathy with the overall market today. The dollar was a touch stronger today. There isn't a buy signal for the gold shares yet and it doesn't look like there will be anytime soon. We'll see. Volume was heavy in NEM and it was up at the close but nothing special. Mentally I'm doing fine, got plenty of sleep. I have no new ideas about what to trade here but I'm working on it. It's a light week for economic data. People will be leaving early Friday for Memorial day weekend. I will most likely remain on the sidelines. The charts showed nothing imminent over the weekend. See you tomorrow...

The Dow rose 80 points on expiration Friday. Advance/declines were positive and the volume was average. The market continues higher even with the summation index going lower. I can't explain it. Perhaps we are about to witness a melt-up. I really don't know. I do know that the divergences cannot last forever. But they can last a while. You cannot fight the price movement. There is so much money sloshing around that up we go, with evidently no end in sight. But it will end at some point. When, I don't know. It never ends good either. Gold was up around 5 bucks today and the XAU gained a point and three quarters. I think it's just an oversold bounce but what do I know? I don't expect gold to do much here but it is oversold. The best case scenario here would be to move sideways and form a bottom. I'll check the charts over the weekend but I do know we are at critical support for gold itself on the longer term. Mentally I'm feeling fine. Got a good nights sleep and did not make any trades this week as that was the plan. I'll be looking to do something for the June cycle. Perhaps after the Memorial day holiday weekend. Or who knows, maybe I'll just sit it out for a while. I'm waiting for a decent signal one way or the other. However the signals haven't really worked lately. It can be a frustrating game. Now it's time for the weekend, check the charts and come up with a new game plan...

The Dow lost 10 points on average volume. Advance/declines were negative. I really think we are forming a top here. There have been many divergences with momentum. The overall market has been weaker than the headline Dow. Option expiration perhaps has propped us up for this week. Time will tell. Gold lost around $4 and the XAU shed another point or so. Gold looks like it is breaking down here. I think the recent rise in interest rates is perhaps making the dollar look attractive again and that is not good for the price of gold. NEM was down again on heavy volume. The volume was high for the gold ETF also. People are getting out of gold. That will change at some point and I hope to be aboard for that next run. It will happen at some point this year. Mentally I'm a bit tired again. I've been quite busy lately away from the market. I haven't made any stupid trades this week so that's a plus. Next week, who knows?

The Dow was up 104 points on average volume. Advance/declines were positive. The upside expiration bias lives. The overall market was decent here today also. So higher we climb. How far? Who knows but enjoy the ride. My own thought is that this can't go on forever. But I have lost enough trying to buy puts lately so I'm on the sidelines. Gold lost big today, over $11. The dollar was stronger. The XAU lost more earlier but came back with the overall market to be down a point and a third. ABX held up pretty well as it has lately but NEM closed below $40. Gold itself needs to hold here or it will break some important uptrend lines. Obviously there is no buy signal here. I'll keep an eye on it. Mentally I'm a bit tired since I haven't gotten a good nights sleep lately. 2 days before the May expiration and I do not see any trades looming on the horizon. I am not going to force the issue here. I'm going to wait for something worthwhile to appear and take it from there. The work continues to need to be done even with no imminent trades. Discipline is still key.

The Dow was up 37 points on good volume. Advance/declines were negative. We were up over 100 at one point. The overall market was weaker once again. We are running out of gas here I believe. Option expiration week might help prop this thing up but I think the rally is over. That is my guess. Gold was up $4 today and the XAU was little changed. The XAU was up earlier in the day and sold off also. I'm waiting for a buy signal there. It hasn't happened yet. Mentally I'm a bit tired today. I would have liked to have taken a chance on some puts today but I am trying to remain out. Discipline isn't easy. The inflation data was viewed as positive and that fueled the rally in stocks early. The dollar sold off and that helped the gold shares early as well. But the gains were not held and implies weakness ahead. Expiration is Friday and anything can happen between now and then. I'm on the sidelines and hopefully staying there...

The Dow gained 20 points on average volume. Advance/declines were negative. The overall market was weaker with the S&P 500 and the NASDAQ both down. Usually such action portends lower prices ahead. But it hasn't been that way lately. The summation index remains pointing down also. Inflation data tomorrow and that will be the mover most likely. Gold was down a couple bucks and the XAU lost over 2 points. The dollar didn't do much today and most of the metals were weaker. I have no trades in the works. Mentally I'm feeling fine. Trying not to make a trade this week if possible and trying to come up with a game plan for the months ahead. I really need to come up with a winning trade to break out of this funk. I have no idea where it will come from but I'm looking. As I said before I will be looking at getting long gold when the proper signal is generated. It hasn't happened where I've been able to see it as I missed the last one a couple weeks ago. You always have to pay attention in the game. There is no let up. That's what helps make it tough. But that's what makes the winning trades all that more rewarding. And not just for the money. It's a mental game with oneself. I don't think it is any more than that when you really get down to it. But what do I know? Not much really. We'll see what tomorrow brings...

The Dow gained 111 points today on light volume. Advance/declines were 3 to 1 positive. So we got the opposite of yesterdays action. Is it a snap back or are we going to new highs in the S&P? Who knows? I had to fight myself all day not to do another trade. Because I'd like to try the puts again. As I've said hundreds of times, the battle always lies within oneself, not the markets. Gold was up 5 bucks and the XAU rose a couple points. The volume here was light also. I'll have to look at things over the weekend. Right now my thought is that my next big trade will be in gold at some point. I have to wait for a decent signal though. I'm not sure that will happen anytime soon. Mentally I'm feeling OK, got a decent nights sleep. I suppose that I will try and let next week pass without making a trade but there are no guarantees. My year hasn't been going well as yet but that can change. I'm kicking myself for not buying some SUNH, which is a long term play for me that I haven't been able to get in to. It continues to go higher. One of my themes for the long term is health care. I think the demographics support these type of companies. These stocks aren't trades per se, they are long term holds once purchased. I'm hoping for some weakness at some point this year and then I can act. Until then it's a waiting game. Time for the weekend...

The Dow lost 148 points on good volume. Advance/declines were 3 to 1 negative. Of course the OEX puts I got stopped out on yesterday are showing a profit now that I don't have them anymore. Ahhh the joys of trading. What can I say? It happens. You've got to put it behind you and keep on going. It isn't easy but it must be done. We have broken the short term uptrend line and should be headed lower. The summation index will now be rolling over with some distance to it. How far will we go? I don't know. There is support for the S&P 500 at 1450 and for the OEX at 670. Those could be some targets. Gold got slammed today, off $15. The XAU lost over 4 points. The volume wasn't all that heavy here though. Gold is approaching important support at $660 to $650. It needs to hold here or there will be a bigger near term drop. I have no reasons, perhaps it's because the dollar isn't dropping anymore. Mentally I haven't gotten any good sleep lately and I'm a bit tired. But I'm not feeling too bad considering the recent losses. Of course, I'm not feeling good either. I mean really, what can I say from here? Trading is and can be one of the most frustrating things you can do. The work is non-stop and the timing has to be close to perfect. You always have to be on your toes. Options are even tougher because you have the limited time variable thrown in. It is never easy. But you keep at it because you know that somewhere down the road you will get it exactly right and that will more than make up for everything that leads up to that trade.

The Dow rose 54 points on average volume. Advance/declines were positive. It is a liquidity driven love fest. The Fed left rates unchanged and said nothing new. We bounced around after that in about a 100 point range. My OEX puts were stopped out for a 50% loss. Not a lot of money in this particular trade but losing is never good. We are overbought and definitely need a rest. But it seems like nothing can stop the market at this point. Oh it will change course eventually, however my thinking now is that it will run up into the expiration. But what do I know? Not much as my recent trading can testify. Gold lost $5 and the XAU was little changed. Volume there was muted. ABX is still holding on pretty good but it lost a quarter today. This will probably run up into expiration also but who knows? Mentally I'm frustrated. The small losses of late weigh on me. I haven't been trading well at all since the beginning of the year. Perhaps it is time to take a break. Even small losses add up and it isn't a pretty picture. You have to somehow remain focused and carry on. The market just wants to go higher. There was no good reason to try and fight that. My timing in was pretty good but the down moves quickly evaporated. In retrospect, I should have just stayed out. But it is always easy to second guess. I did what I thought was prudent and I lost. There is no getting away from that. Where do I go from here? That is the question...

The Dow lost 4 points on average volume. Advance/declines were negative. We were down over 70 points at one time. There is no selling off in this market. It's interesting but it doesn't help my OEX puts any. The summation index should be attempting to roll over again. We'll see what happens. The puts I own are losing money but haven't been stopped out yet. The Fed announcement is tomorrow. I don't know if it will be a market mover or not. Gold lost 3 bucks today and the XAU lost about a point and a half. The volume was light. The trend there is still up for now. ABX was up a dime. My guess is that the Fed will talk tough on inflation tomorrow and the dollar will rally, gold will fall. That's what I'm thinking at this point. Mentally I'm feeling fine, got a good nights sleep. At this point I would like to exit the OEX trade without a loss and I'd feel pretty good if I could do that. Otherwise there is nothing on my radar that seems like it needs immediate attention. We'll see what tomorrow brings...

The blog is early today due to commitments after the bell. The Dow is up around 40 points at the moment on light volume. Advance/declines are positive. My OEX puts are losers at the moment. Fed meeting tomorrow with the announcement the following day. I'm going to at least stick around in this trade for that unless it gets stopped out. Gold is up a couple bucks today. The XAU is up a point and a half at the moment. ABX is acting well, up three quarters on good volume. Getting back to the overall market we are short term overbought again. But lately, when haven't we been? It's a momentum rally and I have had no business shorting it. Yet I continue to try. When it ends it will be just as rapid to the downside. And it will end. But when is the question. Mentally I'm doing OK. Checked the charts over the weekend and there is nothing new to report. If we end higher today and it looks like we will, I will have to say that I never trust Monday light volume rallies. We'll see what happens. Obviously today would have been a better day to buy the puts...

The Dow was up another 23 points today on light volume. Advance/declines were positive. I got stopped out of the SPX puts for a 35% or so loss. Not a lot of money in that trade but a loser none the less. I still feel a decline is imminent so I bought some OEX puts near the close. I changed my order and ended up paying more than I should have. Such is the frustration when things just aren't going well. Perhaps I should have just waited until Monday. Perhaps I should move to the sidelines as I have suggested considering how poorly I've been trading lately. At any rate we'll see how it goes next week. Gold continued higher, up another $6 today. The XAU managed only a quarter point gain. The volume was heavy in the gold shares again but the price action says it's time for a rest. Time will tell. Mentally I'm frustrated. I need to regroup over the weekend and go from there. The battle is always with oneself. I've been losing at that lately. There isn't any getting away from that. The market is a difficult game in itself, you don't really want to make it any tougher. I'll try and relax over the weekend but it won't be easy...

The Dow added another 30 points today on average volume. Advance/declines were positive. The overall market was stronger than the Dow and it doesn't bode well for my SPX puts. They are now under water. The stop-loss order is in, which could get triggered if we rally on the employment report. That seems likely given todays action. But you never know. Gold soared over $9 today and the XAU was up over a point and a half. The volume was heavy in the gold shares and ABX was up another three quarters. Of course I'm still kicking myself for missing that one. But that won't do any good. Especially when I have to manage the SPX trade. And so on it goes. I got plenty of sleep last night but mentally I'm not feeling all that well. Missing opportunities really eats away at me. It affects what I'm going to do from here. I'll probably pull back a little. But that may not be the prudent course of action. Confidence is an important part of the game. You don't want to be overconfident but you need to believe in yourself and your trading. Mistakes are inevitable and must be overcome. Time will heal your wounds but it doesn't happen overnight. So while you're in a bad place mentally it's better to reign in yourself for a while. That's what I'm looking at for now...

The Dow was up 75 points today on good volume. Advance/declines were almost 3 to 1 positive. We were up higher but sold off in the last hour. I decided to buy some SPX puts. It may not be the smartest thing to do, but it is done. The position is slightly in the black. I'm going on the rollover of the summation index for this trade. Although todays action could move that back to neutral. At any rate I will wait for the employment report on Friday and take it from there. Gold was down a bit today but the XAU and ABX soared. I guess I missed out again by not getting long ABX yesterday. I wasn't sure of the signal for the gold shares but I guess it was there. My fault for not taking a chance. They were oversold and the earnings for ABX were due today. They were not that good but the market liked something as it moved up over a dollar fifty on heavy volume. That is the biggest one day move I've seen in that issue. The XAU was up over 3 and a half points. I was paying attention and still missed it. And so it goes. Mentally I'm feeling fine. You have to keep moving in the game. There really are no excuses. It takes a lot of effort to be successful. There is no getting around it. I'm doing the work necessary and there will be other trades that work. Perhaps this SPX trade will be a winner. Time will tell.

The Dow gained 73 points today on heavy volume. Advance/declines were positive. It was another new high for the Dow. The overall market lagged again though. I am thinking of buying some puts and will perhaps do so tomorrow. There's always a chance we just keep going up here though. But the breadth hasn't been there for a while. Today could just be the beginning of the month money flow. Hard to say. Gold lost over $6 today as the dollar was higher. The XAU lost less than a point, which is a positive for that index. ABX reports earnings tomorrow. I'm not sure this is the time to get long gold. I am going to wait for the signal that has worked before in the past that deals with the price relationship of gold to the XAU. We are almost there now but not quite. Getting back to the overall market, I'm probably going to get some SPX puts this time around. The OEX just isn't moving as much right now. Probably due to the fact that it is laden with big caps and they are outperforming at the moment. It's risky but that's trading for you. Mentally I'm feeling good and looking forward to this next trade and how I'll manage it. There are no guarantees but I'll do my best and see what happens. GE has been holding up here and that is supporting the Dow and the OEX. Volume has been heavy in that issue also. That makes me hesitate on the thought of buying puts here but it will not be the overriding factor. We'll see what tomorrow brings...

The Dow dropped 58 points today on good volume. Advance/declines were over 2 to 1 negative. It was the last day of the month which could be a reason for some of the selling. The summation index has rolled over and I am now looking to buy some puts on any type of rally this week. I think the momentum is over. We had bad breadth before yet continued higher. This time the market went to the downside as it should have. Nothing is set in stone though. Gold was up a couple bucks today however the XAU lost over 2 and a half points. It's possible that one of the buy signals will be triggered here soon but with the market getting weaker it isn't a sure thing. The dollar should bounce here soon also as I've said before. So gold at the moment isn't looking like a place to go long just yet. It is never easy. Mentally I'm feeling OK. I checked things out over the weekend and yes, the market is overbought. The big caps have been holding this thing up lately. The OEX did not drop as well in tandem with the SPX. I'm thinking that SPX puts might be the way to go this time. We'll see. GE remains strong and that is worrisome short term for the downside. Employment report on Friday. Was today a one day wonder or the beginning of something bigger? Right now I'm leaning towards the latter...

The Dow rose 15 points today on light volume. Advance/declines were negative. Another pause before a rise? Like the last time this happened a few days ago? Who knows? But we just cannot go on like this forever, can we? The GDP was weaker than anticipated. However nothing really seems to bother the market these days. Most of todays gains were due to GE and Microsoft. Usually when the market advances due to just a stock or two, it isn't a healthy sign. Gold was up over $4 today and the XAU rose half a point. Lackluster really as I think this market senses lower prices ahead. The dollar was weaker but nobody is rushing to purchase the gold shares. In fact the dollar has dropped quite a bit in the past few weeks and the gold shares really didn't do as much as you would think. I'm going to purchase some calls here the next buy signal that I receive. However there is no timeline for when that will occur. Mentally I'm feeling fine with a good nights sleep last night. I'm doing the work necessary for a chance at profits. Perhaps there will be some opportunities in May. The weekend is here and I will check the charts...

The Dow was up 15 points today on heavy volume. Advance/declines were slightly negative. The momentum run continues. We are now at one of the most overbought conditions in some time. I don't know what it means but time will tell. No need to get in the way here, tradingwise. I should have been long something. I should have recognized the high volume breakout. I should have noticed the sector rotation. You've always got to be paying attention in this game. There are no excuses. That is why it is so difficult sometimes. Gold lost around $10 today and the XAU dropped three and a half points. Kind of saw that coming but did not trade it. The question is just how far this move will go. The technicals are rolling over on the weeklies. There still might be a chance to make some money to the downside here on a bounce. Also there is an important uptrend line on gold itself that has to hold for me to remain bullish overall. I'll check on its level tonight. Mentally I'm doing OK. Not a good nights sleep last night but I have no trades in the works anyway. End of the month on Monday. 1st quarter GDP tomorrow. That could be interesting. I have no solid idea there. Not much else to say for now.

The Dow plowed higher into record territory, up 136 points on heavy volume. Advance/declines were 2 to 1 positive. We are on a momentum run. The news doesn't matter it is just up, up and away. Other indices are looking at new recovery highs or all-time highs as well. So sit back and enjoy it. We are overbought and staying there. I have no trades at the moment and will not chase the move. Not yet at least. Gold was little changed but the XAU rose a point and three quarters in sympathy with the overall market. Volume was light in the gold shares though. I will perhaps short this market but nothing doing yet. And so it goes. There is no telling how high we will go here but I can't expect this to last forever. 1st quarter GDP tomorrow. We'll see how the market reacts to that but nothing seems to phase it at the moment. GE was up good on heavy volume today as well. You can't fight the tape. It is a losing battle. The only way to go here is long until this run plays itself out. And there is no telling how long that will be. Mentally I'm OK. Feeling a bit sorry that I'm not long something but that will get me nowhere...

The Dow rose 34 points today on heavy volume. Advance/declines were negative and the overall market was weaker. I think we are going to move lower here. A lot of media attention has been given to Dow 13000. Recently the overall market just isn't moving with the Dow. One of my intermediate term indicators is overbought. We'll see what happens. The economic data today was weak. Gold lost over $6 and the XAU shed a point and three quarters. I'm not looking to get long there at the moment and think that it is too late to short it. But you never know. Mentally I'm feeling OK. I need to get back into the routine of studying my notes and concentrating on making money. The weather has turned nicer here and my thoughts wander sometimes to just taking it easy. The discipline required for success is always necessary. The work always needs to be done if you want to have a chance. The choice is always up to you but if you're going to play, you've got to do the work and keep on top of things. It's not the summer just yet. I have no trades in the works but will need to find some. More economic data will be released this week and I'll take it from there...

The Dow lost 42 points today on average volume. Advance/declines were slightly negative. The overall market was stronger than the Dow, implying higher prices to come. We'll see. I have no trades in the works here. Gold lost a bit over a dollar and the XAU dropped around a point. Not sure what to do here as well but I'm leaning towards the short side. We have begun a new options cycle and the premiums are high. So I'm on the sidelines for now. We have the Fed minutes coming out later in the week and the 1st quarter GDP. I have no good feeling about how any of that will come out and affect the markets. I'm kind of in an indecisive stage right here. Mentally I'm not feeling all that confident with the recent losses that I've suffered. Technically there isn't a clear signal one way or the other here. So putting that all together there is no reason to take any risks at the moment. I've been seeing a lot of press and media attention given to gold lately and that is one of the reasons I'm not bullish there at the moment. Seasonally we are entering the period of under performance for the stock market. The "Sell in May and go away" theory. Which actually works out pretty well usually. However it didn't work last year. So we'll see. Not much else for today...

The Dow soared 153 points on expiration today. Volume was heavy and the advance/declines were 3 to 1 positive. The media is now talking about a melt-up. And who can argue that when we've been overbought and just continue to get more overbought. Thankfully I sat on the sidelines today and did not try any OEX puts. How long can it last? We'll see. Gold bounced back over $7 but the XAU could only gain a point and three quarters. The volume in the gold shares was nothing special. The XAU should be breaking out here with a strong market backdrop and the price of gold continuing to rise. I can't figure it out but I think we will be in for lower prices on the XAU going forward. Time will tell. The dollar was basically unchanged today but gold rose. So we have some crosscurrents going on in this market. Mentally I'm feeling fine. I did lose some money over the past week but it's not the end of the world and you've got to keep moving on. I don't have any short term trades on the horizon but will be checking the charts over the weekend. Right now it looks like the only way for the market to go is up. That can't last forever. We are breaking out to new highs on the Dow and new recovery highs on other indices. That fact, cannot be denied. Momentum is to the upside and makes the earlier drop this year seem like long ago. It's time for the weekend.

The Dow gained 4 points on average volume. Advance/declines were negative again. We sold off big in the beginning of the day and came all the way back. However the breadth has been bad the past three days and I don't think we can keep going up with that kind of backdrop. One more day until expiration and again, I'd like to try the puts but the risk is high. However the market has been propped up all week and tomorrow could be no exception. Gold lost $5 and the XAU got slammed, off almost 4 points. I think we will be trading lower in gold now for a while. The dollar is due to bounce because it is way oversold. I will look to get long gold later this year at some point. Anyway the overall market was weaker once again and I am wondering if this is the prelude to a decline or just working off the overbought condition of the market. The 6 month favorable period for the market is about up however that indicator didn't work last year. I won't be looking to put any long term money to work until autumn. Mentally I didn't get a full nights sleep but I'm not feeling tired. I will perhaps try and make some money tomorrow but I doubt it. I don't have any other ideas in line at the moment. Once earnings are out we should be in a lull for a while but that will take a couple of weeks. NEM does report next week but I don't have any thoughts on that at the moment. I guess it's just a matter of waiting for the next opportunity. Sometimes patience is the best thing you can do.

The Dow was up 30 points today on average volume. Advance/declines were negative. I did not do any trades today but perhaps I will buy some puts tomorrow. We are overbought. The overall market has been weaker the past 2 days. There are only 2 days left in this expiration cycle. The risk is high. None the less I might give it a shot. Gold was little changed as the dollar continued weaker. The XAU lost a point and a quarter but the volume was lighter. I think we are due for a rest in the gold market. However I am not looking to short it at the moment. Mentally all is well but the post is short today due to the switching over of this blog to a Google account. Whatever that means. Google must have bought out Blogger. Regardless, I hope it doesn't interrupt my continuing blog. Otherwise, the Dow hit a new high today and the other markets didn't follow again. My belief is that it will lead to lower prices at some point. We'll see.

The Dow gained 52 points today on average volume. Advance/declines were negative though and the overall market was weaker. The data came in goldilocks form and we traded higher. I dumped the SPX puts for another loss, around 50%. Not a lot of money in this trade but I have been on a losing streak. 3 days before expiration and I'll do my best to just sit it out. We'll see. Gold was down a couple bucks and the XAU lost over a point. Volume was lighter than lately there so I still think the trend is up. The dollar keeps falling and I would have thought it would lead to a better move in the gold shares. But that hasn't been the case for a while now. As usual the battle in the market is with myself. I tried to press things here the past few days and I paid for it. Sometimes you have to be patient and listen to what the market is telling you. Usually, I can do this. For some reason lately, I haven't been able to and it cost me. I will regroup and return. Mentally, I'm frustrated. Losing money is not what I'm here for. However it is part of the game. You've got to be able to put it behind you and move on to the next trade. I don't have any new ideas at the moment. Perhaps I'll put on another trade before the week is out but I probably shouldn't. Earnings looked good after the bell so perhaps we'll get another shot to the upside tomorrow.

We have 20 minutes to go in the trading session as the blog has to be early today due to other commitments. The Dow is up over 100 at the moment and the volume is strong. Advance/declines are over 2 to 1 positive. It has the feel of a breakout. I did something stupid last night and put in an overnight order for SPX puts. I priced it so that I really didn't think it would get filled. My idea was to adjust it in the morning. It was filled immediately at the open and is losing money as I write. I'm waiting for the data tomorrow on inflation. I might be able to break even on it perhaps. There isn't much money in this trade but still I'd like to not show a loss. Gold continued higher today as the dollar fell again. It was up around $5 and the XAU is gaining over a point. The options on ABX and NEM aren't moving much and the shares are each up around 40 cents. I have had thoughts of getting long here even though they have run up but I'm laying off for now. Mentally I'm feeling OK, even with the stupid trade today. Anything can happen tomorrow as any day I suppose. The battle always lies with yourself. For all I know we could be heading for record highs too. So we'll see what transpires...

The Dow rose 59 points on lighter volume. Advance/declines were positive. The inflation data was viewed as benign although it was up a percentage point. The market barely sold off in the first hour. My OEX puts got stopped out eventually for a 50% loss. So I was wrong again. I might try again before the consumer prices on Tuesday but I'll have to look at things over the weekend. It will be option expiration week and the positive bias will be in effect. Tough to go against that but we'll see. Gold soared $10 and the XAU finally had a good day up 3 and a half. The volume was good there as well. NEM was up over a dollar for its biggest gain in quite a while. ABX had heavy volume as well but only rose 40 cents. Those calls that I sold yesterday didn't do much. The dollar hit new lows against the foreign currencies. But still, the gold stocks really haven't followed the price of gold in this move. And that killed the ABX trade for me. Sometimes you can be right on the fundamentals but the prices don't correlate. It happens. However it doesn't happen a lot or else it wouldn't be worth keeping an eye on things. As for the trading this week, it was horrible. My worst week in quite a while. I'll regroup over the weekend and perhaps try again next week. I don't want to do anything stupid again so perhaps I'll sit it out but you never know. Mentally I'm tired and didn't sleep that well this week. That did not contribute to the losses in my opinion. It's a difficult game and times like these leave you discouraged. But you have to move on and remember losses are part of the game. They are going to happen. You just have to give it your best and keep on going...

The Dow rose 68 points today on average volume. Advance/declines were almost 2 to 1 positive. We sold off early and then went straight up. We are right back at the highs and we will either take them out tomorrow or there will be a double top. I bought some OEX puts at some point today. I did want to be short ahead of the inflation number. I am a bit worried about the advance today because if it is as strong as it seems, the inflation data may not matter. The puts are losing a bit at the moment. The stop-loss order is in so some risk control is in place. Gold lost a couple bucks and the XAU was up a touch. I dumped the ABX calls at a substantial loss, about 80%. I didn't have a lot of money in this trade but I really should have been out last week. ABX didn't do much today and the volume was pretty good there. That trade was terrible. When gold moves higher and the XAU doesn't go along with it, there's trouble being long gold shares. I know this but was stupid once again. Like I have said before regarding volume and open interest on options, it usually doesn't mean anything. When I purchased the ABX calls, volume and open interest expanded. It didn't mean a thing. I am glad to be out of that trade and have moved on to the OEX. This could very well be a loser too depending on tomorrow. But the loss will be contained and I will simply move on. Mentally I'm somewhat tired, not getting much sleep last night. Of course if I had known how the market was going to act today I would have slept in. So now it's a matter of waiting for tomorrow and I'll take it from there. However todays action wasn't constructive for the short side and unless we get some big producer inflation number, the puts are dead. That said, I do think producer and consumer prices surged last month, it's just a matter of how the markets react to it.

The Dow lost 89 points on increased volume. Not a good sign for the bulls. Advance/declines were negative. My order for OEX puts wasn't filled. Obviously I'm not happy. I still think we have more to go on the downside here and might buy some puts tomorrow. But the timing has been missed, again. I'm not sure how long this drop will last but I don't expect anything like last month. And I think there will be a buy play next week. Gold was little changed today. The XAU ran up early again and faded again. This has been the pattern for the last 3 days. ABX was weaker with the overall market and my options are dead. It will take a miracle to not lose everything, again. This trade should have been exited last week and I am an idiot to still be in it. The signs to leave were all there but as usual I was stubborn. That is not a good trait to have in a game where you must be flexible. However, you have to somehow go on in the face of frustration. I did put in a limit order to sell but it wasn't hit. The dollar didn't do much today. The overall market action was dictated by the Fed minutes which were interpreted as bearish. No doubt, I should have gotten the puts yesterday. Like I said I could still get some before the inflation report on Friday. We'll see. Mentally of course I'm a bit discouraged at this point but there is plenty of time before expiration for a decent trade. What I don't want to do, is do something stupid to make up for the ABX loss. Tough game.

The Dow rose points today on light volume again. Advance/declines were positive. We have remained overbought but I don't think it can last much longer. I have an overnight order in for some OEX puts in case we get a rise early in the morning. The Fed minutes will be out at 11 PST. There is no doubt in my mind really, that we will have a decline sometime this week. The timing, as always, is the thing. Gold was up over $4 today and the gold shares just couldn't get going. The XAU was up over a point again but mainly due to FCX. ABX rallied early but fell back and did nothing. Volume remains light here as well. I don't know what is keeping me from selling this position. It is a loser and I don't see it turning around at this rate. Gold continues higher and the gold shares draw no interest. That is never a good sign. I really should just take the loss and move on to the OEX, which really requires a lot of attention when trading it. For some reason I still believe ABX will break above $30 before the expiration. The technicals are leaning overbought. Perhaps I am just reluctant to book the loss. That is sometimes a problem. There is only a week and a half left on these things. The dollar was weaker today and that supported gold itself. But the gold shares are stuck. If my prognosis for a downturn here occurs, it will probably take the gold shares with it. We'll see about tomorrow. Mentally I was up early but I am feeling OK. My mind is confused by what is happening in the gold market but maybe I should just take it for what it is and move on. There is always next month and other trades. There is still time to make some money again this month before expiration. I will give it a shot and see what transpires...

The Dow was up 9 points today on light volume. Advance/declines were slightly negative. We are overbought. There will be a decline this week. My guess is after the Fed minutes are released or on Fridays inflation data. I would like to get some OEX puts and I am looking at them. Gold was down 2 and a half bucks today. The XAU was unchanged because FCX had a good day. The gold shares were down on light volume. The light volume was the only thing that kept me holding on to ABX. This trade is going nowhere and will most likely be a loser. Gold is overbought here too and it seems the fundamentals for the dollar have changed recently. Gold seems like it has to head lower with the recent strength in the dollar. Interest rates in the US have risen giving support for the dollar. If the inflation data is strong as I suspect it would further strengthen the dollar. So I really need to bail out of this ABX trade and look towards something else with now less than 2 weeks left in this option cycle. Unless traders flock to gold on stronger inflation, which they did at some point last month. As I stated before the weekly chart on ABX looks good for the upside and that keeps me in at this point also. But time is running thin. Mentally I'm doing good after a nice relaxing weekend. I do have a gameplan for the OEX this week and will look to the puts. GE continues lower here and it sometimes is a proxy for the overall market. But it's all just a guess at this point. The ideal scenario is to meander higher into the release of the Fed minutes and get short before then. But it's not a perfect world. We'll see what happens...

The Dow was up 30 points today on light volume. Advance/declines were positive. I never trust light volume rallies but it could just be a case of pre-holiday getaway. The employment report is out tomorrow with the market closed. I guess we'll have to wait and see what happens. We are overbought and I am expecting weakness and am surprised it didn't happen today. Gold was up a couple bucks and the XAU lost a half a point. This was not good. The gold shares, including ABX, opened higher and closed lower. So we got a one day reversal. There was a point today where the calls I own got back to what I paid for them but then fell back to be in the red again. There are 2 weeks left and the weekly charts look constructive. That is the only thing keeping me in this trade at the moment. Because the daily chart is overbought and todays action wasn't positive. I think that perhaps this was too long of an option trade. We'll see what happens next week. Mentally I'm looking forward to having a 3 day weekend. Once the employment number is out, that should shed some light on the short term and I can go from there. Looking ahead to next week, I will be looking for a spot to purchase some OEX puts. The Fed minutes are out in the middle of the week and the producer inflation will come out on Friday. That's it for now and it's on to the weekend.

The Dow gained 20 points today on kind of light volume. Advance/declines were slightly positive. The economic data today was a bit weaker than expected. We should take a little rest here. I expect tomorrow to be slow considering the long weekend ahead. The employment report is out Friday with the markets closed. That should mute the response on Monday perhaps. GE was down and I'm still looking at it but am not sure of a trade there. Gold was up $8 today but the XAU didn't even gain 2 points. ABX gained about a quarter on good volume but you would expect better gains given the rise in gold itself. I probably should have dumped the calls I own today at a small loss. The trouble is that the recent small rise gives me hope that perhaps I can squeeze a gain out of this. That is most likely just wishful thinking though. I do expect the overall market to pull back next week as we are overbought short term. My thought at this point is that perhaps we'll see a little more strength early next week and I can get rid of the ABX calls there. It's just a guess. I'd also like to get some OEX puts before the inflation data is released. Mentally I'm a bit tired as I did not sleep well last night. I'm also kind of in holiday mode already. I don't anticipate doing any trades tomorrow and with the market slowing down for the holiday, action will be thin. I'll keep an eye on things but I don't expect any big moves and I would probably like to see us down a bit to relieve some of the overbought condition. But who knows?

The Dow rose 128 points today on average volume. Advance/declines were about 3 to 1 positive. My thinking is that this wasn't the strongest rally that I've seen for up over 100. I'm just not believing that it is off to the races. Oil was down today and the economic reports came in a bit stronger than anticipated. I'm looking for a spot to buy OEX puts sometime next week. Gold lost a couple dollars today but the XAU rose almost 2 points in sympathy with the overall market. The volume was nothing great. ABX was up but sold off at the close to gain around 30 cents. I am still holding the options. The trouble now is that with a couple of up days it makes it seem like this trade can actually work. If we close higher for the week it might but there are no sure things and the technicals are back in overbought territory. I'm going to have to think real hard about closing this trade and taking the loss. That is probably the thing to do, especially if I think we are going to head down sometime next week. Mentally I'm feeling well, got a good nights sleep. I did stay away from GE and it barely moved today even with the market doing so well. My thoughts are pretty clear on staying away from marginal trades, as that one would have been. But that could change with the ongoing battle with myself. Don't really know what to make of tomorrow but we probably need a little rest. We'll see.

The Dow was up 28 points on average volume. Advance/declines were positive. I think we will be going higher here in the short term, perhaps to challenge the recent highs. I don't think this is the start of anything other than that. As I have said before I think we are in a trading range and that sideways is the best we can hope for here. Gold was moving all over today and ended up a couple bucks. The XAU gained over 2 points which was encouraging. But ABX was only up a quarter and gold is selling off in the aftermarket. I really think I need to dump those options at a loss this week and preferably before Thursday. Unless we get some type of rally before the long weekend. But that's just wishful thinking. Mentally I'm feeling OK. This losing trade is weighing me down somewhat. I just need to do the right thing and move on. I was looking at some GE calls today. I'm thinking we will be going higher and GE will join in. But the technicals aren't in the ideal situation for going long so I'll probably just sit it out until next week. But you never know...