Oversold and staying there as the Dow lost 53 points on light volume. The advance/declines were negative. There were rumblings from Europe about the debt problem and from the reading of the latest Fed minutes. Don't really know where we go from here. Should have had some type of bounce by now. Summation index still heading lower. I do not expect a collapse but what do I know? Not much trading left in the US this week with the Thanksgiving holiday looming. GE fell 1/4 on light volume. I still have the open order in for the January calls. Not exactly sure this is the right move the way the overall stock indices are acting but we are oversold on a daily basis. Plenty of time for this trade to work if the order does get filled but that won't matter if we just continue lower for an extended period of time. Gold bounced back over $20 on the futures. The US dollar bounced around today and ended about where it started. The XAU was up 2 7/8. ABX gained a buck, GG rose 7/8 and NEM up 1/2. Volume was light. I would still like to get the calls here on the gold shares for December or January. The ideal scenario would be for some base building in the near future. That, combined with a solid Gold/XAU ratio signal, is all we need. We'll see. Mentally I'm a bit tired, did not sleep well. Also not feeling 100%. Oversold, staying there and not a lot of volume. These aren't bullish factors. The stock indices are oversold on a daily basis though. Lots of economic data out tomorrow but the markets haven't cared much about that lately. So on we go. It's a tough trading environment but we knew that already. Perhaps the GE call trade will fill tomorrow.

We started off the shortened trading week to the downside as the Dow fell 249 points on average volume. We were down well over 300 during the session. The advance/declines were 4 to 1 negative. I was expecting a bounce and it hasn't happened. I did not expect any huge downside and that is exactly what we got. So my idea of what is going on here at the moment is wrong. Oversold and staying there and that is never bullish. Summation index is heading lower. Something is going on but I have no idea what that is. It's happened before. Europe, the US debt problem, fears of another recession, you pick the excuse. I still expect upside medium term for the stock indices but that could be wrong as well. GE lost 3/8 on average volume. I placed an open order for the January calls. I'm leaving it in overnight. The premiums are getting down to about what I'd like to pay for this trade. Not sure it will work but I'm willing to give it a shot. Plenty of time for this trade to work if the order does get filled. Unless we are on the verge of some type of market collapse. I still don't think that is about to happen. Gold got clobbered again today, off over $40 on the futures. The US dollar was higher again today but not a lot. I'm not sure what is going on with gold at the moment either. The XAU lost 3 2/3. ABX down 3/4, GG lower by 7/8 and NEM fell 1/8. Volume was average. The gold shares all came well off of their lows. I would still like to get some January or December calls here. Perhaps today was the day. I'm trying to wait for the Gold/XAU ratio to hit the recent number for a buy signal. Did not happen today. The gold shares are still performing better than the metal itself and that is bullish for the gold shares going forward. Mentally I'm feeling tired and not all that well. It makes the decision making even more of a chore. I'd still like to let this week pass before doing anything but I did place the GE trade. Once again there is something happening in the markets and I can't put my finger on it. I expected this week to be slow due to the holiday and it has started anything but that. We'll see what happens in the overseas markets tonight and take it from there.

Not a very volatile expiration Friday as the Dow gained 25 points in uneventful trading. The advance /declines were positive and the volume was light. The overall market was a bit weaker than the Dow. We're short term oversold here and I would expect a bounce in the beginning of next week. I would also expect light volume next week as well with the Thanksgiving holiday on Thursday. I do not have any OEX trades in the works right now. GE was flat on light volume. The technicals here are oversold. I still would like to purchase the January calls here. Waiting for the premiums to get cheaper. Gold was up $5 today after yesterdays sell off. The US dollar was weaker today. The XAU was off 1 3/4. ABX and GG were off 3/8, while NEM lost 3/4. Volume light here too. We aren't oversold on the daily technicals for the gold shares just yet. However the weekly charts do not look constructive anymore for the bullish cause and patience is in order. Mentally I'm feeling tired, did not sleep well. I'm still a believer in higher prices for the stock indices medium term. We've been basically moving sideways for the past 4 weeks. The summation index is moving lower now and that is something to consider for the downside argument. The light volume lately isn't bullish either. So we'll see. I think staying on the sidelines next week would be a good strategy. It's getting to Friday night now and time for a rest.

Continuing lower today as the Dow fell 135 points on average volume. The advance/declines were 4 to 1 negative. No real news to speak of to spark todays decline and we did come off of the lows. The summation index is heading lower. Getting short term oversold. I'm not exactly sure what's going on here but I still don't think we are on the verge of a collapse. Option expiration tomorrow. So we'll see what happens. GE was down 1/3 on better volume. We just broke the 50 day moving average line on the daily charts. When the premiums get to what I'd like to pay, I'm getting some January calls for GE. That time may be approaching soon. Gold took a hit today, off $55 on the futures. The US dollar was higher but not that much for gold to be down as far as it was. The XAU fell 7 3/8. ABX off 2 1/8, GG dropped 1 1/4 and NEM lost 1 3/4. Volume was more than lately but still not that much. I'd still like to get some gold share calls for the upcoming months. When we're oversold here on a daily basis, I'll be purchasing the calls. Perhaps within the next 2 weeks. We'll see. I'm also not sure why gold suddenly took a fall today as well. Mentally I'm feeling OK, slept well. We're still basically moving sideways on the stock indices but are at the bottom of the channels. If GE is again the proxy for the stock markets, we will be breaking through to the downside. That remains to be seen. The volume has been light all around and that isn't bullish. We will also be entering tax selling season at the beginning of December. The technicals are what really matter and we are approaching oversold levels on a daily basis. Let's get through tomorrow and take it from there.

We opened lower, made it all the way back and then got clobbered in the final hour to finish the day with a loss of 190 points on the Dow. The advance/declines were 3 to 1 negative and the volume was average. A report came out late in the day about the US banks exposure to the European debt. As if nobody knew about this already. But that's what happens in an event driven marketplace. We are in the 4th week of sideways action in the stock indices, so perhaps we are going to break out to the downside. We'll have to see what comes out overnight. The economic data out today wasn't all that bad but continues to be ignored in the face of the European debt problem. That is the ongoing situation and it hasn't changed. GE was off 1/4 and the volume is still light. A waiting game here and it is probably better to be patient. Gold fell $8 in the futures market and some more in the aftermarket. The US dollar continues higher as the flight to safety is still in effect. The XAU dropped 4 bucks. ABX off 7/8, GG down 3/4 and NEM led the way lower by 1 2/3. Volume remains light here. Perhaps I'll get an opportunity to try the gold share calls for December or January if we continue lower. The weekly charts will not be looking as positive though if the downside here persists. I'm going to try and wait for the daily chart technicals to get oversold and take it from there. Not there yet. Mentally I'm feeling OK, slept OK. I still think that the trend for the stock indices medium term remains up. I do not think we are heading into the abyss. I'm still a believer that we've seen the lows for the year and prices will be heading higher. The price of oil just broke $100 and that tells me there is demand. I don't think we're headed for a double dip recession. But what do I know? And does it really matter? In reality the only thing that really matters is the next trade. January GE calls or the December/January gold share calls. Those are the ideas for now.

The Dow closed higher by 17 points today on light volume once again. The advance/declines were positive. The overall market was stronger than the Dow. The pace has slowed down for some reason as the trading for the first 2 days this week has been rather lackluster. That could change at any moment on news though. No OEX trades in mind here at the moment. GE was up 1/8 on light volume. Trying to hold the 50 day moving average line on the daily charts. Succeeding so far. I'm still waiting for an entry point for the January calls. Gold was up $5 on the futures after being lower early. The US dollar had another good day. The XAU was up 1/8. ABX, GG and NEM were all basically flat on the day on very light volume. I'll be looking to get long here once the technicals are oversold. Not close to that happening yet. I will try and remain patient. Mentally I'm feeling OK, slept well enough. 3 days left in the November option cycle. So far this week has been a very light volume affair. I would expect that next week will be holiday slow as well. Like I said before, any news could spike the stock indices one way or the other without any notice. Or we could just meander around waiting for something to happen. The latter seems to be the case so far this week. There is a lot of economic data out this week but so far the markets aren't really paying attention. We still remain hostage to Europe.

We started off expiration week lower as the Dow lost 75 points on very light volume. The advance/declines were 3 to 1 negative. We came off of the worst levels of the day and the volume was light so I don't think this is the beginning of some kind of huge downside move. But anything can happen I suppose with all the problems in Europe. 4 days left on the November options and I doubt I'll be trying anything with the OEX this week. We're still dealing with the 200 day moving average lines on the major stock indices. GE was off 1/4 on light volume. The January calls are what I'm looking at there and have been for a while. When the premiums get to a level that I'd like to pay and the stock is oversold, that will be the time to try that idea. Gold was down $7 on the futures as the US dollar was higher today. The XAU fell 3 1/3. ABX, GG and NEM were all down a buck on light volume. I'd like to see the gold shares pull back some more before trying the calls here again. May not happen. I'm looking at the December and January options for ABX and GG. We'll see. Mentally I'm feeling a bit tired, did not sleep well. We still remain in an event driven marketplace and once again that is a tougher than usual trading environment. We have expiration week this week and a long holiday week next week with Thanksgiving. The prudent course of action here may just be to do nothing unless a valid technical signal appears. But that should almost always be the case. We'll see what happens overnight and go from there.

Positive news out of Europe today and the Dow gained 260 points on light volume. The advance/declines were 6 to 1 positive. This is the type of up and down game we're in. Down almost 400 points on Wednesday and gaining it all back in the following 2 days. We are hovering at or below most of the 200 day average lines for the stock indices. How we resolve this issue will tell the most about longer term direction. I still think we will be seeing higher prices going forward. That's my guess for now. But we are still in a headline driven environment. Anything can happen overnight. GE was up 1/4 on light volume. I still will consider the January calls here if we get some pullback. Nothing doing for now. Gold had a good day, up almost $30 on the futures as the US dollar had a bad day. The XAU rose 6 3/4. ABX up 2, GG gained 2 1/2 and NEM tacked on 1 2/3. Volume was light but there were no sellers. I placed an overnight order in for some ABX calls but it wasn't filled. I was a day late here as we have started to move up again. With only 5 days to go in the November option cycle, I do not think that I'll try this trade again. But who knows? The weekly charts are still pointing to higher prices. I may go out to December or January if we get some downside. Mentally I'm not feeling good about missing that ABX trade at a higher strike price. We are overbought but with all the uncertainty in Europe, gold seems to be the place that is attracting money. I do think that ABX and GG will follow NEM to new highs in the next couple of months. That would require a break to the upside from the $55 level for both of these stocks on good volume. If and when these issues get through $55, they could move much higher since there is no resistance beyond that point. That is my idea for the gold shares in the medium term future. The stock indices are being moved around by the events in Europe on a daily basis. That is a tough game to play. I am looking for higher prices in the coming months but how we get there is anybodies guess. Only a week left in the November option cycle so I really don't see myself taking on any short term trades here but you never know. I'll check the charts over the weekend and go from there. For now it's Friday afternoon and time for a rest.

We attempted to stabilize today after yesterdays debacle as the Dow gained 113 points on lighter volume. The advance/declines were 2 to 1 positive. The overall market was weaker than the Dow. It's anybodies guess what happens from here. News could come out of Europe one way or the other. The technicals are not overbought or oversold on the stock indices, so we could go either way. I don't have any OEX trades in mind right now. 6 days to go in the November option cycle. GE was up 1/4 on average volume. No trades here for now either but I'm still considering the January calls here. Gold fell $30 on the futures today and the US dollar was weaker as well. I can't explain that. The gold shares held up rather well as the XAU only fell 7/8. ABX was flat, GG lost 3/8 and NEM dropped 1/2. Volume was light. All were lower early and that may have been the time to get the November calls for a short term trade. Perhaps. That is the only trade that I'm considering at the moment. Very risky though with a little over a week to go for the options. The gold shares are outperforming the metal itself though and that is bullish going forward. Mentally I'm feeling OK. Longer term I'm looking for higher prices but where we go in the near term is the question. Was yesterday just a one day blowout or the beginning of something bigger? Obviously, I don't have the answer. I had a better feel for things a few weeks ago. I still think I want to try the ABX calls again here. The weekly chart still looks positive. Perhaps I'll go out to December instead of January for that idea on a longer basis. We'll see. I'll consider things overnight and go from there.

Troubles in Italy took center stage as we remain in a headline driven market. The Dow fell 389 points on average volume. The advance/declines were 9 to 1 negative. I had thought we might continue to the upside but that was wrong. We are hostage to what happens overseas. Where we go from here is anybodies guess. The technicals will get thrown out the window. After a day like today you've got to figure that we're heading lower. Europe continues to be an ongoing problem and there really is no end in sight. It makes for very difficult trading for sure. The sidelines isn't a bad place to be but you don't make any money there. You also don't lose any either. GE was off 2/3 on good volume. I'm back to considering the January calls. We aren't really oversold here on a medium term basis, so I'm in no hurry. Gold fell $7 on the futures and another $20 in the aftermarket. The US dollar was very strong today as the euro plummeted. Gold held up pretty good early but then dropped. The XAU lost 7 1/4. ABX down 7/8, GG lower by 1 1/4 and NEM led the way falling 2 1/3. Volume was good to the downside, which isn't bullish. But I still might try the ABX calls for November again. The relative strength of the gold shares here is very good. The technicals are starting to roll over though. If the stock market heads lower here, it will take the gold shares with it. So this isn't going to be an easy trade to put on. Plus there are only 7 days left in the November option cycle. I'm also considering going out to the January contract as well. Mentally I'm feeling OK. Volatility really picked up today and that could be a sign of danger for the stock indices near term. Or some positive news comes out of Europe tomorrow and we rally 300 points. That is the problem trading right now. Anything can happen in rapid fashion. If you're on the right side of things it will turn out well. If you're not, you'll get wiped out. I might put in an overnight order for some ABX calls but I will have to study things tonight. I also may just sit things out. After the last ABX trade, I need to be careful not to project what happened there into the future. Not every trade is going to be a big winner. I'll check the charts and take it from there.

We bounced around today and then continued higher as the Dow gained 101 points on light volume. The advance/declines were 3 to 1 positive. We got some news out of Italy today that the market viewed as positive. So we continue to live in a headline driven trading world. Perhaps we can take out the recovery highs this week or before expiration. Summation index still heading higher. Getting short term overbought. GE was up an 1/8 on better volume. The daily chart looks constructive for more gains here but I'm not sure that I'll try something with 8 days left in the November option cycle. Maybe. Gold was up $8 on the futures as we crossed the $1800 level early in the day. But we sold off in the aftermarket after the Italy news. The US dollar lost ground too as the safe haven trade was taken off for a day. The XAU dropped 1 2/3. ABX off 3/4, GG fell 2/3 and NEM lost 1/2. Volume was average. I dumped the ABX calls during the session for a gain of 575%. I still like the gold shares but wanted to lock in a decent profit while in the overbought technical condition. I still may try these again before expiration, moving to a higher strike price. I'm also looking out to January here as well. We are overbought but in this type of market environment anything can happen. Mentally I'm feeling tired, did not sleep enough. The stock indices continue higher as it's possible that we will simply rally into the expiration. Or not. That is the problem here as the uncertain, headline driven marketplace moves forward. I don't have any trades in mind here at the moment. I do favor higher prices near term. The ABX trade is done. I had the biggest loss of the year in the previous trade followed by the biggest gain. That doesn't mean anything. It's on to the next idea as there are still 8 days left in the November option cycle. I usually don't do too well with the short term trades though. The weekly gold share charts are still looking like there's room to run on the upside. It's possible that I'll try the ABX calls again for November. We'll see what kind of news comes out overnight and take it from there.

Although we opened higher, we were lower for much of the day but made a comeback in the last 2 hours and closed on the high of the day. The Dow gained 85 points on light volume. The advance/declines were positive. Now Italy is the problem as the focus remains in Europe. It's a different country every day it seems like now. I think we could head higher off of todays close. We're not at high overbought levels on the technicals for the stock indices. Of course we are one bad headline from Europe away from a decline as well. It's a tricky trading environment. GE was flat on light volume. The technicals here mirror the overall market as well. No trades in the pipeline for GE right now. Gold had a good day on the European worries, up $35 on the futures and a bit more in the aftermarket. The XAU gained 6 1/3. ABX rose 1 3/8, GG up almost 2 and NEM broke out to new highs with a gain of 2 3/4. Volume was OK for the gold shares but I would have liked to see more. Very overbought here now. My ABX calls continue to gain ground but I can't hold on to them forever. ABX was the laggard today and that isn't a good sign. I might just bail out tomorrow. We'll see. Mentally I'm feeling OK, slept well. We're still being held hostage by Europe. It's the ongoing saga and there is no end in sight. Not a lot of economic data out this week. It will probably be a headline driven affair for the stock indices this week. Gold had a good day despite the US dollar being higher for much of the day. I'm not sure gold can just continue up in a straight line as we are approaching $1800. I will have to ponder what to do with the ABX calls tonight as I have held them for almost 3 weeks and they are considerably overbought. However NEM, which is usually the gold share leader, has just broken out to new highs. Is it possible that GG and ABX could follow? The weekly charts still point to higher prices. Tough call but I don't want to get too greedy and I don't want to miss out on the gains. The game is never easy.

We were lower all day today but pared some of the losses as the day wore on. The Dow closed down 61 points on light volume. We were down around 190 in the early going. The advance/declines were negative. The employment report was mixed, with better revision numbers but weaker job gains in October. The focus was on Greece once again as there is another vote of some sort to be held tonight. The markets are being held hostage by the headlines in Europe. That is the ongoing story. GE fell 1/4 on light volume. No trades here for now. Gold was weaker today as the US dollar gained on the Europe story. The gold futures fell $8. The XAU dropped 2/3 but was much lower early as well, following the overall stock market. ABX down 2/3, GG off 1/4 and NEM was flat. Volume was light here. That is what you'd like to see if you're looking for higher prices. My ABX calls lost some ground today. I really need to exit this trade next week. That is what I should do, if we get any strength. Overbought on ABX and staying there but that won't last. The weekly charts still look positive but there are only 2 weeks left in the November option cycle. Mentally I'm feeling OK, slept good. It was a down week for the stock indices but there is nothing in my mind to think that this is the beginning of some type of extended down trend. The summation index is still heading higher. The markets are waiting for some type of resolution on Greece and the European debt situation. This is a story that just keeps dragging on. It is really anybodies guess as to how that all plays out. As for the ABX trade, it's still showing a decent profit. I'll probably dump them next week. I'll be checking the charts and the headlines over the weekend. I expect the volatility will continue for the time being. It's Friday afternoon and time for a break.

We continued higher today as the Dow gained 208 points on average volume. The advance/declines were 4 to 1 positive. Still dealing with the daily drama from Greece. The market moves up and down according to that news for now. We do have the employment report out tomorrow but unless it's something out of the ordinary, it won't mean much. That's my opinion. It's still a European headline moving market. We are moving off of the early week short term oversold condition. GE was up 3/8 on average volume. Just biding my time here as there is no imminent trade yet in my mind. I could be wrong. Gold had a good day, up $35 on the futures as the US dollar was lower. Gold is also getting some of the flight to safety money I believe. The XAU rose 5 7/8. ABX up 1 1/2, GG gained 1 1/4 and NEM led the way higher by 2 3/4. Volume was average. My ABX calls are back to being solidly in the black. Short term overbought and staying there for ABX. The weekly charts still look constructive though. There's still 2 weeks left in the November option cycle. I don't want to get too greedy though. Mentally I'm feeling OK, slept well enough. It's been a volatile week so far for the stock indices. Anything can and will happen in this type of environment. I don't have any OEX trades in mind right now as I'm focusing on ABX. I am going to try and time the exit properly but we all know how that goes. ABX has almost had a straight line up move in the past 2 weeks and that won't last forever. We'll see what happens tomorrow. There is still plenty of time left in this trade but I don't think I'll be holding it until the last day of the option cycle. I do have a target in mind but it is more technically related than price related. We'll see.

A bounce in the Dow after the last two negative sessions as we ended the day with a gain of 178 points on light volume. The advance/declines were 5 to 1 positive. The Fed spoke, people listened and we got on with it. I didn't like the fact that the volume was light today. However we are moving to a short term oversold condition on the stock indices and that may provide some relief for the bulls. Or not. Next up is the employment report on Friday. That doesn't mean that we aren't wary of anything coming out or Europe. That's the wild card here. GE was up 1/4 and the volume was light here as well. The technical condition of GE is a mirror of the overall market. No trades here for now. Gold was up about $25 on the futures as the US dollar fell a buck today. The XAU rose 4 1/2. ABX up 1 1/4, GG higher by 1 2/3 and NEM gained a buck. Volume was average here. My ABX calls are still in the black. I am thinking about getting rid of them soon but the technicals are not yet as overbought as I would like. That said, getting a profit out of this trade is imperative. Mentally I'm a bit tired, did not sleep well. Todays market action looked like nothing more than an oversold bounce but I could be wrong. The markets are waiting for some news from Greece. That will be the key for the near term direction. The problem there is that you just don't know what's going to happen. It's hard to trade off of that. But that is the market reality we're in at the moment. We'll see what tomorrow brings.

The Dow continued lower today with a vengeance as we lost 297 points on good volume. The advance/declines were around 7 to 1 negative. The troubles in Europe returned today and it looks like that story just won't die. I did not expect a big decline here and I was wrong. No telling exactly what may happen now. The markets are being held hostage by Greece. It sounds stupid but that is the story for now. Moving to oversold very quickly but there is still room to go lower if the market wants to. We have moved back down into the previous congestion zone. I suppose anything can happen at this point. GE opened gap down and lost 2/3 on increasing volume. Maybe I will get a chance for the January calls after all. However at this time, in this market environment, it would be better to let things shake out first. It is getting a little crazy. Gold sold off early and then made somewhat of a comeback. The futures were only off 5 bucks after being much lower. The US dollar had another huge up day in the flight to safety. The XAU was off 2 points and bounced around all day. ABX lost an 1/8, GG rose an 1/8 and NEM fell 1 1/4. These issues also bounced around after opening much lower. Volume was average. My ABX calls a started the day in the red but made a comeback and are back in the black for now. The volatility is enormous at the moment. That will keep the option premiums higher than usual. I'm holding on to the ABX calls for now but could exit at any time. Mentally I'm a bit tired, did not sleep well. We have the Fed tomorrow and the employment report on Friday and it seems like that doesn't even matter. It is a headline and event driven marketplace once again. It makes for tougher than usual trading. It also presents opportunities if you are astute enough to find them. The weekly ABX charts still look good to the upside to me but that could evaporate at any time. It is that type of situation that we find ourselves in. We'll see what happens in Europe overnight and go from there. It will be interesting.

We closed the month with a pretty big loss as the Dow started the week down 276 points on average volume. The advance/declines were almost 5 to 1 negative. A money management firm went belly up in the US. That, along with locking in some gains from the recent run up in prices were the culprits for todays action in my opinion. But what do I know? I still think we will see higher prices going forward. We may be on our way back to retest the breakout from the congestion zone. That would be around the 1225 level on the S&P 500. We closed on the low for the day and that is short term negative. GE was off 1/2 on lighter volume. No trades here for now. Gold fell today as the US dollar had a very good day. The precious metal lost about $25 on the futures. The XAU fell 6 3/4. ABX down 1 1/3, GG lost 1 1/4 and NEM led the way lower by 1 2/3. The only saving grace was that the volume was lighter than lately. My ABX calls gave up some of the gains but they are still profitable. The weekly charts are still looking good but the daily charts are overbought and rolling over. The ideal situation would be sideways action before heading higher but the time decay of the options would still take effect. There are still 3 weeks left in the November cycle though. It's a tough call. I'm holding on to them for now but that could change at any time. Mentally I'm feeling OK. It was a rough start to the week if you're bullish but we had become extended to the upside. I don't think it's the beginning of some extended downside but you never know. We've got the Fed and the employment report coming up this week, so we could get some volatility. ABX had gone up in a straight line, so some consolidation is expected. However if we have a reversal there and a decline starts my ABX calls will be losers. Stay tuned.

It was a day of rest for the markets as the Dow gained 22 points on average volume. The advance/declines were about even. It was a sideways market all day as we digested the huge gain of the previous day. It was quite a good week for the stock indices. The summation index continues higher. I think it's now obvious to everyone that the trend is up. We'll see how long it can last and I expect that it will for a while. GE lost 1/8 on average volume. No trades here for now. I still might try the January calls but I'd have to see the price drop first. Gold fell $3 today as we are digesting the weeks gains here as well. The XAU rose 4 2/3 as the gold shares are outperforming gold itself. That is usually bullish going forward. The US dollar was a bit higher today. ABX and GG both up 1 7/8, while NEM tacked on 2 3/8. Volume was good. Prices are moving higher with volume on the gold shares. That's a positive sign. My ABX calls are now solidly in the black. ABX had its best week to the upside since 2009. The question now becomes when to sell them. The entry on this trade wasn't that good. I'll try to do the exit better. Volume and open interest expanded on some ABX options over the past week as well. That usually implies higher prices. Mentally I'm feeling OK, slept well. The stock indices are in rally mode and the weekly charts suggest higher prices yet to come. Short term we are overbought and staying there. We've got the Fed next week and we may be on hold until then. We also have the end of the month on Monday followed by the usually bullish beginning of the next month. Not to mention the employment report on Friday. So there will be plenty to sift through next week. I have some price targets in mind for the ABX trade but I don't want to get too greedy. However I also don't want to leave too much money on the table either. Things can also turn on a dime in this game. That's something to remember. For now it's a fall Friday afternoon and time for a break.

We got a deal in Europe and the markets responded with the Dow rocketing higher by 340 points on heavy volume. The advance/declines were almost 8 to 1 positive. We were up over 400 before selling came in late in the day. Overbought here now but the trend is up regardless. Summation index moving higher. Declines can still be bought. We have broken through the 200 day moving average convincingly on some of the stock indices. That is bullish. More will follow. You can get long and stay long. GE was up a buck on very heavy volume. The January call trade here that I had in mind has been missed at this point. Maybe I could try it if we get some pullback before the end of the year. But that remains to be seen. If GE is still a proxy for the overall market, than we've got more to go on the upside. I'm a believer in that. Gold was up about 20 bucks as the US dollar got smashed. The European deal led everyone of of the dollar and into the foreign currencies. The XAU rose 5 3/4. ABX up 1 1/8, GG gained 3/4 and NEM tacked on 1/4. The volume in ABX was heavy, just average for GG and NEM. ABX had stellar earnings and my ABX calls are solidly in the black. Overbought here and I probably should have sold them today but the weekly charts look very constructive to the upside. I still may take the profit tomorrow and try to buy them back cheaper next week. But price and volume are moving higher and that is bullish. Mentally I'm a bit tired, did not sleep enough. The stock indices are moving higher post Europe. The question now is what will be the next catalyst to propel us higher? I would expect the indices to take a rest here due to the fact that we are seeing a buying feeding frenzy. We'll see. The ABX trade is one that still has 3 weeks to go but we are pretty overbought right now. I may exit on follow through if we get any tomorrow. We are at the convergence of the 50 and 200 day moving averages here. A pause is to be expected. However if I do exit this trade there are no guarantees that I'll be able to buy the options again cheaper before expiration. Profit or loss, there are no easy trades in the game. We'll wrap up the week tomorrow and the month on Monday.

Back to the upside as the Dow gained 162 points on average volume. The advance/declines were about 4 to 1 positive. The Dow was stronger than the overall market today. Still waiting for Europe to announce something about the debt deal. The market was back and forth today, higher, lower, higher. I still think we will be going higher. But as I stated before, some consolidation would not be a bad thing. GE was up an 1/8 on average volume. Still waiting here for an entry point for the January calls. Gold continued higher, up about $20 on the futures. The US dollar was up a bit as well. The XAU gained 2 points. ABX was up 2/3, GG lost a fraction and NEM was up a buck. Volume was good here again. GG announces earnings after the bell and ABX before the bell tomorrow. My ABX calls are still in the black. I will probably sell them tomorrow on the earnings news. Or not. Gold has shown some life here this week and I may hold on a bit longer to the calls. We'll see. Getting overbought on the gold shares but there still may be some room to the upside. Mentally I'm feeling OK, slept well. We'll wait to see what happens in Europe tonight and we have the GDP report coming out tomorrow. So I would expect to see some more movement in the stock indices again tomorrow. It certainly isn't a quiet market at the moment. ABX will announce its earnings and I suppose that will be the key for this trade one way or the other. I am also thinking of just selling the calls tomorrow regardless and then trying to buy them again before the November expiration. The weekly ABX chart is beginning to look constructive to the upside. We'll see what happens tomorrow morning and take it from there.

Back to the downside as the Dow fell 207 points on average volume. The advance/declines were almost 5 to 1 negative. Some consolidation can be expected here as we have been moving higher for 3 weeks or so. I do not think it's the beginning of something big to the downside. I could be wrong and often am. But this time, I believe that today is a pause in a continuing uptrend. The summation index continues higher. Still waiting on European news tomorrow. GE fell 1/4 on average volume. It's just a waiting game here for me. The January calls are the plan and the purchase time is when this issue gets oversold. Not there yet. Gold was the story of the day as it surged about $50 on the futures despite the dollar being higher as well. The XAU gained 2 3/4 but was higher before losing ground at the end of the day, following the overall market. ABX gained 7/8, GG up 1 3/8 and NEM rose a buck. Volume picked up which supports the bullish cause here. These issues were higher on the day as well but fell off late. My ABX calls have made it into the black. However ABX is lagging both GG and NEM here and that isn't positive. I'm still holding out for the earnings on Thursday morning. That could be the time to dump them for whatever they're worth. We'll see. We're not overbought here yet and I may hold onto them longer than I expected. Mentally I'm a bit tired, did not sleep enough. We had a big day in the price of gold but the gold shares didn't move as much as I'd like. We'll see how that plays out going forward. The stock indices are waiting on Europe. What happens when that's over? I still believe that we're heading higher regardless. We'll see what the news is tomorrow and the markets reaction to it.

The market continues higher as the Dow gained 104 points on average volume. The advance/declines were over 4 to 1 higher. This won't go on forever as we are overbought and now overdue for a pause. But the trend is up and there is no denying that fact. Now Europe will report something about fixing their problems on Wednesday. I don't know how that will pan out but whatever the reaction, prices are going higher eventually. Declines can be bought in my opinion. GE was up 1/8 om average volume. We got through the earnings. Now it is a matter of waiting for GE to reach oversold levels. If and when that occurs, I'm still looking at getting some January calls there. Gold was higher today as the US dollar fell. The yellow metal was up $18 on the futures and the XAU gained 8 points. ABX and GG rose 1 2/3, while NEM was up 1 1/4. Volume was light. My ABX calls are almost back to break even. The poor timing on the entry obviously is costing me whatever profit that could have been gained from todays nice up move. I'm still in favor of waiting for the earnings report on Thursday to possibly exit this trade. At least now there is a chance it won't be a loser but that could all change going forward. Mentally I'm feeling OK. The stock indices are overbought and staying there. That in itself is bullish. However we do need to see some type of pause in this straight up kind of action to ensure that the rally has staying power. That's how I see things at the moment. We may be in a holding pattern, waiting on Europe. The ABX trade has taken a turn for the better with todays price action but the volume was weak. I'm going to wait for the earnings later this week to decide what to do. So it's a waiting game there until Thursday. Nothing else on the radar screen at the moment.

We ended the week with a bang as the Dow gained 267 points on average volume. The advance/declines were better than 6 to 1 positive. The summation index continues higher. We are breaking out of the congestion zone to the upside. The trend is up until further notice. We'll get some kind of news from Europe over the weekend and that will be the catalyst one way or the other for Monday morning. Declines can be bought. GE lost 1/4 on good volume. The earnings were in line with expectations but it didn't matter. This could be a sign that the overall market will move sideways next week but that's a guess. GE did not participate in the rally. I still want to get some January calls before the end of the year. If and when we get oversold on GE may be the opportunity. I'll keep an eye on things. Gold had a good day, up $28 on the futures and sold off a bit in the aftermarket. The dollar took a hit today. The XAU gained 3 3/8. That didn't help the major gold stocks as ABX and GG were up only 1/4, while NEM gained a buck. Volume was light. My ABX calls are still in the red and it doesn't look like this trade is going to work out. If ABX can't rally on a day gold is up and the market rallies over 200 points, then the calls I own are in trouble. I'm still going to hold out for the earnings next week but that will be about it. At this rate I don't think this trade will get back to break even. ABX opened very strong and then sold off for the rest of the day. That isn't positive price action. We'll see about next week. Mentally I'm feeling OK, slept good enough. The stock indices had a strong rally today and appear to be breaking out. We'll see on Monday just how much of today was expiration related. I'm still a believer that the decline is over and higher prices are in the future. We'll see what transpires in Europe over the weekend and go from there. For now it's Friday afternoon and time for a break.

An up and down day as the Dow finished ahead by 37 points on average volume. The advance/declines were positive. The market is being held hostage by the ongoing fiasco in Europe. Hopefully something gets resolved over the weekend. But that won't be the end of it as there are no quick fixes. Expiration Friday tomorrow. More overbought than oversold here. Summation index still moving higher. I'm a believer in a breakout to the upside from the congestion zone for the stock indices. GE was up 1/8 on average volume before the earnings report tomorrow. Tomorrow the market will key off of this report early in my opinion. I'm still looking out to January if and when we get oversold here. Gold fell again today as the US dollar showed a bit of strength. The precious metal lost over $30 and the XAU fell 1/4. ABX down 1/2, GG lost 1/8 and NEM off by 2/3. Volume was good. My ABX calls are in the red. I'll be lucky to get out alive at this point. I think that I was a day early on the purchase. I'm committed to holding on until the earnings are out next week. We did close pretty far from the low of the day which may portend higher prices tomorrow. Mentally I'm a bit tired, did not sleep well. GE earnings tomorrow should set the tone for the stock market and we'll go from there. Expiration Friday will add to the mix. Gold and the gold shares are having a tough week and we'll see how it closes out. No economic reports due out tomorrow but they are taking a back seat to Europe anyway. Let's finish up the trading week and see what happens over the weekend.

Back and forth so far this week as the Dow lost 72 points today on light volume. The advance/declines were about 3 to 1 negative. The overall market was much weaker than the Dow. Earnings disappointments and a weak read on the economy by the Fed were the culprits. Not to mention the overbought condition of the stock indices combined with the resistance at the top of the months long congestion zone. Some hesitation is expected here. GE was off 1/8 on lighter volume. The fact that GE held up rather well today tells me that there is no huge decline coming up for the market. At least that's my theory for today. Could all change with the earnings for GE out on Friday but I don't think so. Gold fell $5 on the futures and a bit more in the aftermarket. The dollar was weaker early but then came back. The XAU got slammed, down 10 1/2 points. ABX fell 2 1/3, GG dropped 2 1/2 and NEM down 3 1/8. Volume increased to the downside and that isn't bullish going forward. My order for the ABX November calls was filled and they are already in the red. Todays price action on the gold shares was very negative considering the price of gold didn't drop that much. No matter. The game plan was to get the November calls ahead of the earnings next week at the price that I felt was right. That much has been accomplished. We'll see where we go from here. Mentally I'm feeling OK. So the next trade has begun and I will have to try and do a better job of managing it than the last one. 2 days left in the October option cycle. Not sure what to think after todays negative action but I still think we are just pausing here before breaking out of the congestion zone. On to Thursday.

Back to the upside as the Dow gained 180 points on average volume. The advance/declines were 5 to 1 positive. We are attacking the top of the congestion area and I do think we will break above it. Expiration week usually has a positive bias and that may be enough to push us through. Calls and being long are the way to go until further notice. GE was up 1/2 on average volume. Waiting on the earnings report on Friday. Gold took a hit today, down around $25 on the futures. We were down lower than that early and made even more of a comeback in the aftermarket. The US dollar was just a bit lower today. The XAU dropped early on but closed higher by 1/3 on the day. ABX off 1/8, GG was flat and NEM fell 3/4. Volume picked up here. The gold shares sold off hard to start the day and followed the market higher for the rest of the day. My order for the ABX November calls wasn't filled. Today was probably the day to get them. It was kind of a reversal back to the upside for the gold shares today. I'm leaving the order in but may have to adjust it if we continue higher in ABX from here. Or I simply missed it. Time will tell. Mentally I'm doing OK. The stock indices feel like they want to go higher here. The summation index is still pointing to the upside. You cannot fight that. We're still overbought both short and medium term but Mondays action relieved some of that. We'll see what happens overnight in Europe and take it from there.

We started expiration off to the downside as the Dow lost 247 points on light volume. The advance/declines were about 5 to 1 negative. European worries surfaced once again. I do not think that this is the start of something big to the downside. We were both short and medium term overbought, so some type of pullback is expected here. I still believe that the trend has changed and we will eventually be heading higher. GE fell 1/3 on light volume. Earnings out on Friday. I'd still like the January calls there and will purchase them if the price gets into my range. Gold fell $6 as the US dollar was higher today. Probably due to the European fears being rekindled. The XAU dropped 5 points. ABX off a buck, GG down 1 1/3 and NEM lost 2/3. Volume light here as well. I placed an order for some ABX November calls and I'm leaving it in overnight. I'd like to be holding calls when the earnings are announced next week. We're overbought here so some decline is in order. We'll see. Mentally I'm feeling OK, slept good enough. A pretty good decline to start the week. The stock indices have risen up to the top of their congestion zones. Some hesitation is expected here but I do believe higher prices are in the offing. Declines can be bought in my opinion. I am frequently wrong though. The summation index is still heading higher even with todays decline. Plenty of economic data and earnings coming up this week. We'll see how it goes.

It's a grind higher before expiration week as the Dow gained 166 points on light volume. The advance/declines were 5 to 1 positive. The sellers have left the building. Short and medium term overbought now but the tone of the market has changed. We're going higher until further notice. The low for the year has been put in. How can I be so sure of this? The summation index is heading higher. Seasonality turns bullish from here until spring. The presidential cycle points to higher prices. Any declines can be bought. The market has started to ignore bad news. This rally hasn't had great volume but I don't think that it matters. I could be wrong but this time I doubt it. GE was up 1/3 on light volume. We are still at the top of the congestion range and probably will break out next week. Earnings due out on Friday. I'll try my best to stay on the sidelines here before that. Gold continues higher with a gain of $15 on the futures. The US dollar was weaker today and it looks like the 2 month rally there is over. The XAU rose 6 1/3. The gold shares have been doing better than gold itself lately and that bodes well for the bullish cause going forward. ABX 1 1/4, GG gained 1 1/2 and NEM continues to lead the way higher, up 3 1/8. Volume was light however but nobody is selling. Declines in the gold shares are being bought. I would still like to try some gold share calls before the earnings coming out the final week of October. I would expect the gold shares to continue higher next week along with the market, pre-option expiration. Mentally I'm doing OK, slept well enough. The stock indices continue to roll along and there is really nothing to stop them now. Earnings season is upon us and the estimates are so low that even weak numbers will be cheered by the markets. That is the kind of game that this is. Know that and plan accordingly. The only way to play now is from the long side. I have a couple of ideas but getting in now after we've already rallied will not be easy. I'm going to try and not make some kind of short term trade next week but you never know. It really isn't my strong point but some would wonder if I have any strong points at all. No matter. The markets roll on. For now it's Friday afternoon and time for a break.

A little bit of selling today as the Dow fell 40 points on light volume. The advance/declines were negative. The overall market was stronger than the Dow. Summation index is still heading higher. The trend has changed to the upside. Once we get past 1220 on the S&P 500, I expect the rise to accelerate. That's my best guess at the moment. GE dropped almost 1/4 on light volume. Overbought here but we could remain that way. I still want to own some January calls but I think I'll wait until after the earnings report next Friday. Gold fell $14 on the futures and the XAU lost 3 3/4. The US dollar was flat today. ABX down 1 1/8, GG fell a buck and NEM off 1/3. Volume was light. No trades in the gold shares for now. Mentally I'm doing OK but could have slept better. The recent OEX put trade loss was my biggest of the year. So it is no surprise that the confidence level is down and I'll tread lightly going forward. I will try not to make any short term trades in the last 6 days of the October option cycle but there are no guarantees. We'll get through Fridays trading and go from there.

The rally continued today as the Dow gained 102 points on average volume. The advance/declines were about 4 to 1 positive. We did however cut the days gain in half by the close. We could be in for a pause here but the trend remains up. Summation index moving higher. We reached 1220 on the S&P 500 and backed off. 1220 is the final area of resistance in the congestion zone that has been in place since August. I almost placed an overnight order for some OEX puts. The McClellan oscillator gave a signal for a significant move but I held off. The previous loss may have saved me there. There's also a tendency sometimes to try and get back what you've just lost. Luckily I recognized this and did not place the trade. It doesn't make up for this weeks OEX trade loss though. GE was up 1/4 on average volume. I took off the open order for the January calls here. I'll keep an eye on things but this trade may have been missed. Gold was up $20 on the futures today as the dollar got whacked again. The XAU was up 1 3/4. ABX and GG both gained 1/3, while NEM fell 1/3. Volume continues light here. I also took off the open order for the ABX November calls as well. I still may try and do something before the earnings report at the end of the month but we are now more overbought than oversold here. I'd prefer to see the gold shares build more of a base here but that may not occur. Mentally I'm feeling OK. Even if the stock indices pull back in the near term, the trend has changed to the upside. We are short term overbought now. I'll be looking for some calls on weakness. I won't be in a hurry to do anything after this weeks losing trade. 7 days to go on the October option cycle and I have not had success with short term trades. I will try and be patient. Retail sales on Friday is about the only economic indicator coming up for the remainder of the week besides jobless claims tomorrow. We'll see if the rally can continue.

We ended the day with a slight loss on the Dow as we lost 16 points. Volume was light and the advance/declines were positive. The overall market was stronger than the Dow. We are now short term overbought. That doesn't mean that we can't stay that way. I dumped the OEX puts for a 75% loss. I should have sold them yesterday as this was a trade that did not work at all. It happens. Today was probably a better day to purchase some puts. I have no other OEX trades in mind at the moment. GE was flat on light volume. I still have the open order in for the January GE calls. Gold lost $10 on the futures and the XAU dropped 1/3. The US dollar was flat today. ABX and GG had fractional losses and NEM fell 7/8. Volume remains very light here. The gold shares were lower early and came back. I think my next trade might be here but we'll see. Mentally I'm feeling OK. Not exactly pleased about taking the recent OEX loss but you've got to keep moving on in the game. 8 days left for the October option cycle. Short term overbought on the stock indices but the summation index is moving higher. I have no clear ideas at the moment. I do have the open orders in for GE and ABX but they are on a longer time frame. The market is news driven lately and we have a Senate vote on the jobs bill coming up along with a European bailout vote. We'll see how things go tomorrow.

The Dow took off to the upside today on good news from Europe as we gained 330 points on light volume. The advance/declines were 10 to 1 positive. It was a partial holiday for Columbus Day which probably explains the light volume. The summation index will now be trending higher. The decline is now over in my opinion. My OEX puts are dead. I'll be taking the loss tomorrow which I really should have done today. Declines can be bought from now on. GE rose 2/3 on lighter volume. We've made it through the 50 day moving average and are at the top of the congestion zone. We should break through to the upside shortly. Gold was up $35 on the futures and a bit more in the aftermarket. The US dollar got slammed today on the good news out of Europe. The XAU gained 6 1/3. ABX up 1 1/3, GG rose 1 1/4 and NEM led the way higher by 2 1/8. Volume was extremely light here. I'd still like to get some gold share calls for November on a pullback. Mentally I'm feeling OK. I still have to open orders in for the January GE calls and the November ABX calls. I'll be leaving them in for now. Not happy about the OEX put trade but you take your chances sometimes in the game. We will most likely simply be going higher from here. Fed beige book out tomorrow and that's about it for news. We'll see what kind of follow through we get tomorrow.

An up and down day as the Dow opened higher, sold off, came all the way back and higher only to sell off at the close. We ended the day with a loss of 20 points on average volume. The advance/declines were over 2 to 1 negative. The overall market was much weaker than the Dow. The employment report came out and was much better than expected. The market tried to rally but couldn't. That may or may not be telling going forward. My OEX puts are in the red as the timing wasn't as good on the entry as it good be but what can you do? That is the trouble sometimes with the stock index options. The timing has to be exact and nothing is exact in this game. The volatility and time premium in the options are already starting a rapid decay. I also had to lower the strike price which certainly doesn't help things. It's not a complete lost cause but I'm not counting on this to be a good trade. GE was flat on the day after trying to get through its 50 day moving average. Volume was average here. I'll be keeping an eye on things here as a proxy for the overall market. It seems to be working that way lately. Gold lost around $17 on the futures and the XAU fell 4 1/4. The US dollar ended little changed despite the good employment report. ABX, GG and NEM all dropped a buck on light volume. I think the gold share calls are the way to go if we retest the recent lows. I'm leaving in the open order for the November ABX calls. Mentally I'm feeling tired as I did not sleep well or long enough. The beginning of next week will be the key. We are at the levels on some of the technicals that have turned back any recent rally attempts. If that remains true, then the OEX puts I own will have a chance. If not, then I believe that the decline is over. That's my best guess at the moment. We didn't rally on good news and that may be telling. Monday is a partial holiday with Columbus day so that may skew things. Plenty to ponder over the weekend. For now it's Friday afternoon and time for a break.

The rally continues and seems to be for real at this point. The Dow gained 183 points today on average volume. The advance/declines were 6 to 1 positive. Todays action will turn the summation index back to the upside. I went down to a lower strike price and purchased some OEX puts near the close. That was the game plan and I stuck to it but I wouldn't be surprised if it doesn't work based on the recent market action. However it will all depend on the markets reaction to tomorrows jobs report. We've worked off the oversold condition and some of the technicals are back at the levels that have begun the down moves. So we'll see what happens. GE rose 1/4 on average volume. Almost to the 50 day moving average line that has been resistance. I'm leaving in the order for the January calls. Gold gained over $10 on the futures as the US dollar was weaker again today. The XAU rose 4 3/4. ABX up 1 1/2, GG climbed 1 3/4 and NEM higher by a buck. Volume was average. It really looks like I missed out on a good opportunity here as both ABX and GG have risen well over 10% in the span of 3 days. I'm leaving in the open order for the November ABX calls but doubt it will get filled at the price that I want. My hope now is for some backing and filling in the gold shares to get long. May not happen. Mentally I'm feeling OK. Still 2 weeks to go in the October option cycle. All eyes will be on tomorrows employment report. So far it seems to me that we have had a huge snap back from the lows on Tuesday in the stock indices. If we continue to rally tomorrow, I'd say that the recent decline has run its course. If not, who knows? I'll be hoping that gold returns to its recent lows but hope is no way to trade. We'll see what the market reaction is to the employment news and take it from there.

Building on yesterdays one day reversal as the Dow gained 131 points on average volume. The advance/declines were almost 3 to 1 positive. Now we must ask if the recent lows are the end of the downtrend and is the 2 day rally for real? I don't have the answers. I would still like to own some OEX puts before Friday. However with bullish engulfing patterns on the stock indice daily candlestick charts, that may not be the proper trade here. The weekly charts now look bullish as well. That could all change with Fridays employment numbers though. So it will be a tough call as to what to do tomorrow. GE was up 3/8 on good volume. I did place an order for some January calls today. I'm leaving it open until it's filled or I decide to do something else with it. Gold rose $25 on the futures and the XAU gained 8 points. The US dollar was lower today. ABX up 1 2/3, GG higher by 2 points and NEM tacked on 1 3/4. Volume was average. I also placed an order for some ABX November calls but I may be too late here as well. Perhaps if we get some backing and filling here, the order will get filled. I do not want to chase things here as I still think there is a chance for more decline in the overall market. Mentally I'm doing OK, slept well. I'll really need to decide tonight what to do, if anything, before Fridays employment numbers. Yes, I could always just sit it out and wait for the markets reaction. But if we get a huge decline from the start, it will be too late for the OEX puts. There's always the possibility that the numbers aren't that bad and we continue to rally. The technicals are moving up from being very oversold. I'll mull things over tonight and decide what to do for tomorrow.

We had a one day reversal to the upside as the Dow opened lower and closed higher. We ended the day with a gain of 153 points on good volume. We were down almost 250 points in the morning. The advance/declines were positive. Is this the short covering rally that we're looking for in order to purchase some OEX puts? Could be. In bear markets we see strong rallies that spring up out of nowhere. Todays action qualifies under that criteria. Is today the end of the recent decline? Time will tell on that one but I'm inclined to think that we aren't done with the downside yet. I could be wrong and often am. GE was up 1/8 in reversal mode as well. Volume was heavy. I thought about putting in the order for the January calls but we are not yet at the price I'm looking for. We also have earnings coming out on October 21st which could complicate things. However I am going to get some calls at some point. Gold took it on the chin today, down over $40 on the futures. The XAU fell 6 1/4 but was lower during the session. ABX dropped about 1 1/2, GG down 1 3/4 and NEM lost 2 bucks. All had heavy volume and also cut their losses dramatically in the final hour of trading. I also considered putting in the orders for the November gold share calls as well. The daily candlestick charts are now looking positive for the gold shares. We are oversold and todays action looks like a bottom has been put in. That could all change tomorrow though in this volatile marketplace. That is just one of the problems here. You don't want to be too early. Mentally I'm doing OK. Fridays employment report still looms big at the end of this week. However a lot of the stock indice charts are now showing bullish candlestick reversals. I still might get some OEX puts before that report is released. Plenty of time left in the October cycle. Might be time for the gold shares as well but not if we get another down leg following Fridays employment report. Nothing is certain in this game as we well know. We'll see if we get any follow through to the upside tomorrow.

Starting October where we left off in September as the Dow lost 258 points on good volume. The advance/declines were almost 10 to 1 negative. Index puts are the place to be and I don't own any. The premiums are still very high on the options. We've broken the consolidation in the S&P 500 to the downside. Now it is simply a question of how low we go. We haven't even gotten to Fridays employment number yet. So we'll see what happens. I have a couple of ideas longer term involving GE and the gold shares. I suppose I'll be looking for entry points. GE helped lead the way down today, off 1/2 and closing on its low for the day. Volume was good. I still want to get some January calls here. Gold had a good day with the futures up $35. The US dollar was higher as well in the flight to safety. The XAU fell 2 points though. ABX dropped 3/8, GG was flat and NEM gained 1/3. Volume was light here. I'd like to get some gold share calls eventually. I'm looking to go out to November. Plenty of time there. The Gold/XAU ratio is off the charts to the buy side but that indicator hasn't been working lately. Mentally I'm doing OK. Trying not to get caught up in not owning any OEX puts as we fall here. Perhaps there will be a short covering rally this week before the employment report. Wishful thinking there. I have a couple of ideas with the longer term GE call options for January and the gold share calls for November. The summation index has turned down again but it's been in a range lately with no extended moves. We'll see what happens tomorrow.

More downside today as we ended near the lows for the week. The Dow lost 240 points on average volume. The advance/declines were 4 to 1 negative. I really feel as though we at at the edge of a cliff. We're at the bottom of the trading range and I think we will break it to the downside. Unfortunately I don't own any OEX puts yet as the premiums are very expensive with the recent volatility and 3 weeks left in the October cycle. I'll still try and get some before the employment report next Friday if we get some upside next week. But that may not happen. We're oversold here but that doesn't matter if we see a collapse. There aren't any reasons to buy stock here just yet. GE lost 2/3 on better volume. Probably getting ready to break down here as well. I'm going to get some January calls here next month. That has been the idea and I'm sticking with it. Gold was up $5 on the futures. The XAU was higher during the day but ended up only 1/2. ABX rose 3/8, GG gained a buck and NEM higher by 3/8. Volume was a little better today. The US dollar had a good day as money sought safety. However the flight to gold for safety is not happening at the moment. I am still going to get some gold share calls next month for the November cycle. We're oversold on the gold shares. However if we get the market collapse that I fear here, the gold shares will follow. Mentally I'm feeling tired, did not sleep enough. The stock indices cannot gain any traction to the upside. When we started the week with about a 600 point gain on Monday and Tuesday but couldn't hold it, that was telling. It isn't a good sign. Perhaps we can get one more short covering rally in the beginning of next week to buy some OEX puts. If not, I'll have to look at the other longer term call trades in GE and the gold shares. There is still plenty of time in the October option cycle. The VIX is pretty high here and if it continues upwards, look out. The market will go where it wants. I think next week could be very interesting. But for now it's Friday afternoon and time for a rest.

An up and down day as we opened higher, went lower and then closed higher by 143 points on average volume. The advance/declines were over 2 to 1 positive. Not quite sure of what to make of todays session. The overall market was weaker than the Dow. I'd still like to own some OEX puts before the employment report in a week. The summation index is moving back and forth with no real trend at the moment. I still have the open order in for the OEX puts but I'll probably cancel it over the weekend unless it gets filled tomorrow. GE was up 3/8 on light volume. GE was a proxy again today as it never went negative even with the market selling off. GE is once again getting close to its 50 day moving average on the daily charts. It is something to keep an eye on. Gold was little changed on the futures today but did sell off last night before coming back. The XAU was up 1/3. ABX and GG gained 1/3, while NEM was up a buck. Volume was light. The US dollar didn't do much today. Perhaps the gold shares are trying to put in a bottom here. However if my market prognosis is correct, we will see lower prices in the coming weeks. I could be wrong. Mentally I'm feeling OK. We had every reason to sell off today but somehow made a comeback. This portends near term strength. The ideal scenario for me would be to purchase the OEX puts next Tuesday or Wednesday on market strength. That is probably wishful thinking. We have been going sideways for about 2 months in the stock indices. The breakout, when it happens, is something to be a part of. I still think it will be to the downside but the longer we wander around here increases my doubts of that. I still want some November gold share calls as well. Tomorrow ends the week, the month and the quarter.

Back to the downside today as the Dow lost 180 points on average volume. The advance/declines were 5 to 1 negative. My guess is that the chance to purchase the OEX puts at a reasonable price has passed and we will be heading down from here. Monday and Tuesday were nothing more than a short covering snap back rally in retrospect. I think that we will be taking out the lows of support shortly. I could be wrong. I'd still like to be short ahead of the employment report next Friday. I'm leaving in my open order for the OEX October puts but it probably won't be filled. Perhaps I'll adjust the price. GE was off 1/3 on light volume. I'm expecting the recent lows to be taken out here as well. The game plan is to still get some January calls within the next month or so. Gold fell back $35 today and a bit more in the aftermarket. The US dollar was higher. The XAU dropped 8 7/8. ABX off 1 3/4, GG down 1 3/4 and NEM fell 1 7/8. Getting pretty oversold on the gold shares but the timing here will be the key. I'd still like the November calls at some point. Trying the October cycle here would entail more risk if we get the market selling off more as I expect. Mentally I'm feeling a bit frustrated. That is to be expected when what I was looking for shows up and I don't take advantage of it. I'll just have to take it from here. No hurry to get long at this point, however the gold shares are getting blown out to the downside. I really think we are about to have a precipitous fall in the stock indices. Stay tuned.

The Dow took off to the upside today but pared its gains in the final hour. We closed the day higher by 146 points but we were up over 300. The advance/declines were almost 5 to 1 positive and volume was average. This should turn the summation index back to the upside. I placed an order for some OEX puts but it wasn't filled. I'm leaving it in overnight but I may be too late again already. No real news for the rally in the stock indices, just the hope that Europe ends up OK. Not overbought or oversold here on a short term basis. I'm a believer that puts should be owned at some point before the employment report next week. I could be wrong. GE was up about 1/4 on light volume. It too was higher earlier in the day. I'll keep an eye on GE as a proxy for the overall market. It has been a precursor of sorts lately. Gold bounced back today, the futures gained over $50. The US dollar had a weak day. The XAU was only up 1/4 after being much higher early in the day. ABX was up 1/4, GG was flat and NEM lost 7/8. Volume was light here. I think it is too early for a sustained up move in the gold shares here. That said, I would still like to own some November calls eventually. If the overall market falls as I expect, the gold shares should drop and that would be an entry point for the calls. Wishful thinking perhaps. Mentally I'm feeling OK, slept well. So we had a huge move to the upside in the stock indices and couldn't hold on. My order is in for some OEX puts but it may not get filled. The daily candlestick charts don't look positive for the stock indices with todays move. But that could all change tomorrow. End of the month on Friday. We'll see what happens overnight in Europe and go from there.

A huge rally to start the week as the Dow gained 272 points on average volume. The advance/declines were about 3 to 1 positive. I'm inclined to believe that this is simply an oversold bounce but you never know. No concrete news to rally on today yet up we went. I'm not going to try and figure it out. The market speaks and we should listen. I still want to own some OEX puts before the employment report at the end of next week. Hard to be patient here but that is what's required. GE was up 1/3 on average volume. The January calls are still what I have in mind here. No hurry to purchase them as I will probably wait until next month. Gold was very volatile today as the futures lost $45 but made a comeback in the aftermarket. Overnight the futures were down twice that much. The dollar was off a bit today. The XAU gained 3 3/4 after being lower early on. ABX up a buck, GG rose 1/2 and NEM led the way higher by 1 1/2. Volume was average. I did place an order for some ABX calls but was not filled. I'm leaving the order in overnight. I'm pretty sure this is where to make the purchase. I would expect things to be choppy for a couple of weeks but I could be wrong. I'm trying the October cycle but may go out to November as time goes on. Mentally I'm feeling tired, did not sleep well. A nice rally out of nowhere today and we should see some follow through in the overseas markets. I'm still a believer in the OEX puts for the October option cycle. My feeling is that gold will hold up here around the $1600 level but I could be wrong. The technicals for the gold shares are oversold here. The ideal situation would be for some base building before we move higher. We'll see.

The Dow held up pretty well today and finished the day with a gain of 37 points on good volume. The advance/declines were positive. Perhaps we'll see a bounce in the beginning of next week. I get the feeling anything to the upside will be a short lived reprieve. I think we'll still see lower prices in the weeks ahead. Looking out a couple of weeks, I'd probably like to own some OEX puts before Octobers employment report. GE was up about an 1/8 on average volume. We're at the bottom of the trading range here and I do believe that we will break down. I'm still looking to buy the January calls here at some point. Gold had another debacle of a day, down just over 100 on the futures, with a slight bounce back in the aftermarket. The US dollar was down a touch but that didn't matter. Gold is now in a free fall as usually happens when something goes parabolic. The XAU fell 8 1/4. ABX down 2 1/3, GG lost 2 1/8 and NEM shed another 2 1/3. Volume was heavy. The gold shares did bounce a bit during the day. I would still like to get some gold share calls for October or more likely November. However we are just gapping down every day right now. Gold itself is around 1650 and support in my opinion come in at 1600. I may purchase some calls if and when we get to that point. Mentally I'm feeling a bit tired, did not sleep well. It was a negative week for all of the markets it seems as the realization is now that a worldwide slowdown in economic activity is at hand. We're oversold on a lot of the indices but could stay that way for a while. It's a tough trading envirornment. I still think that if we get a bounce, it can be shorted. I could be wrong. Plenty of data out next week and we've got the end of the month as well. I'll check the charts over the weekend

We are in liquidation mode as the Dow fell 391 points on very heavy volume. The advance/declines were 8 to 1 negative. A slight comeback before the close as we were down over 500 points. We've got lower to go though as the August lows are not going to hold up here in my humble opinion. Something is going on here but I certainly don't know what it is. All markets are dropping around the globe in what looks like a repeat of the fall of 2008. Buy index puts on any bounce if we get one is the strategy now. Plenty of time left in the October option cycle. Not sure just how low we will go this time around. It creates opportunity as well don't forget. I'm going to try and be patient but who knows? GE was off 1/3 on heavy volume. I'm still looking at the January calls here. No rush to purchase them but that is the game plan for GE. Gold got pummeled as well, down $66 on the futures as the flight to the US dollar was substantial. No flight to safety for the precious metal today. The XAU dropped 16 2/3. ABX lost 4 1/2, GG fell 3 1/2 and NEM down 2 1/2. Huge gaps to the downside in the gold shares. If the stock indices continue to the downside, the gold shares probably will follow. That said, I would still like to own some calls here at some point. The October or November calls in either ABX or GG. Mentally I'm feeling OK. The summation index is heading lower. The trend is down. We are about to break through the congestion zone of the past few weeks to the downside. I'm not sure how low we will go. If we drop hard again tomorrow I may purchase some gold share calls but I could be early. These are interesting times. Opportunity will present itself. It's a matter of being ready and being prepared. I'll check the charts tonight and go from there.

I suppose we know which direction that we are headed now as the Dow lost 283 points on average volume. The advance/declines were 6 to 1 negative. This will turn the summation index back to the downside. The Fed spoke and the market reacted. I don't know if there will be a chance to get any OEX puts on this move. They were expensive before todays move and they are more so now. If we do get one of those one day bounces, that would be the time. My guess is that we are going to take out the lows of August. GE lost 2/3 on better volume. I'm still a believer in the January calls here. I'll be getting them in the next few weeks if the decline proceeds as I expect. We could not make it through the 50 day moving average on the daily charts. Gold fell today as well and the US dollar was higher. The precious metal was down over $20 in the aftermarket. The XAU dropped 6 1/4. ABX off 2/3, GG down 1 1/2 and NEM fell 2 1/4. Volume was average. I'm going to try the October or November calls here at some point. I'm not sure if it will be with ABX or GG. Mentally I'm doing OK. Hard to fault myself for not already owning some puts here as the premiums are so high. But if we just drop like a rock here I certainly won't be happy. I do have some longer term ideas that could work though. Keep an eye on TRAN to see if it breaks the previous lows as it is a leading indicator as of late. Volatility picked up today and we will have to see if that continues as well. I think we are heading much lower in the next few weeks. Puts are in order for the stock indices in my opinion. I could be wrong and often am.

Kind of a mixed bag ahead of the Fed as the Dow gained just 7 points after being up well over 100. The advance/declines were negative and volume was light. The overall market was weaker than the Dow. Now I'm not exactly sure what the next move is. Todays action leads me to believe that we are now headed lower. I might get some OEX puts tomorrow when we get the usual gyrations during the Fed announcement. Or not. More overbought than oversold here. One of the problems is the high priced option premiums. However if this is the beginning of the next leg down, puts will be profitable regardless. I'll consider this overnight. GE lost 1/8 on light volume. Volume has shrunk here in the first 2 days of the week. Waiting on the Fed perhaps. Gold had a good day, the futures were up $30. The XAU rose 4 1/2 points. ABX up 1/2, GG gained 2 1/4 and NEM was the star of the day up 3 2/3. Volume was good. NEM is breaking out to new highs. Will ABX and GG follow? I did put an order in for some ABX calls today but canceled it before the close. This is something to consider tonight as well. If the overall market drops will the gold shares go down as well? The gold shares are more overbought as well but there could be room to move higher. The dollar didn't do much today. Mentally I'm feeling OK. Waiting on the Fed and so is the market at this point. I have a couple of ideas here but not sure what direction that I'll take. I'll check the charts overnight and decide which direction to take from there.

We started the week off with a whimper as the Dow fell 108 points on light volume. The advance/declines were 3 to 1 negative. European worries persist but I think the real trouble is the slow economy. That's my take for now. We were down well over 200 points early. The small stocks are still showing good relative strength so I continue to believe in higher prices near term. We've got the Fed announcement the day after tomorrow as the main news of the week. Prices should move off of that. GE lost an 1/8 on light volume. Getting close to the 50 day moving average on the daily chart for GE. If we can get through there it could bode well for the overall market. Gold dropped $35 on the futures today and the XAU fell 2 points. The US dollar was higher today. The gold shares were mixed with ABX off 1/8, GG down 7/8 and NEM up 1/2. Volume was average. I'm on the sidelines here for now. We are getting oversold though. The plan is to own some calls prior to the earnings releases in October. Mentally I'm doing OK, slept well enough. The market seems to want to go higher here. The summation index is still rising. One thing that troubles me though is that the price of copper has broken down. This is usually a good indicator of the strength of the economy. It also has a tendency to be a proxy for the stock indices in my opinion. That is why even though stock prices seem to want to rise here, I'm not inclined to purchase the calls. We'll see what happens as time goes on. Option premiums are high with the extra week in the October cycle. Stay tuned.

An expiration upward drift as the Dow gained 75 points on average volume. The advance/declines were just about even. Short term overbought now and I would expect some type of pullback in the beginning of next week. The summation index is moving higher and the trend is up. The major stock indices are still in the consolidation zones from the recent August decline. However the small cap indices have broken out to the upside. They are usually the leaders going up or down. Therefore I would expect the other stock indices to follow. We'll see. GE was up 1/4 on OK volume. We are at the top of the congestion zone here as well and it is something to keep an eye on. If GE breaks out I would expect the stock indices to follow. Gold made a comeback today, up $33 on the futures. The XAU rose 2 1/3. ABX up 3/4, GG higher by 7/8 and NEM gained 1 3/8. Volume was light. The US dollar bounced back today as well. Not exactly sure of what to make of things here with gold. The daily gold share candlestick charts do look constructive to the upside though. The gold share calls could be my next trade. I would like to own the calls ahead of the next earnings reports. Mentally I'm feeling OK. It wasn't a good trading week for me but I suppose it could have been worse. The market wants to go higher here it seems. You cannot fight that. However we are in an event driven marketplace and Europe is the driving force at the moment. So we'll see if any news comes out over the weekend and go from there. The option premiums will be pricey for October going from here. It's Friday afternoon and close to the end of summer. Time for a break.

An expiration week rally as the Dow gained 186 points on lighter volume. The advance/declines were 3 to 1 positive. Summation index moving higher. We've broken the downtrend lines on some major stock indices and the trend is now up. Getting short term overbought here. No trades in mind for the OEX at the moment. We'll be rolling into the October option cycle on Monday and they have an extra week. Premiums will be higher than usual. GE was up another 1/3 on lighter volume. Still looking to go out to the January options there. Perhaps next month. Gold took a hit today as the flight to safety trade looks like it got unwound a bit. The precious metal fell $45. It came back a bit in the aftermarket. This happened despite the US dollar taking a good hit today. The XAU was up 1/3. The gold shares sold off early but made a comeback. ABX up 1/8, GG down 1/3 and NEM up 1/8. Volume was light. I'd like to own some calls before the next earnings reports here but that is over a month away. Getting oversold here but not there yet. Mentally I'm doing OK. I've put yesterdays dumb trade behind me and I'm looking ahead. That's really all you can do. No solid ideas at the moment. It looks like we'll be heading higher near term. We'll get through the expiration tomorrow and go from there.

It was the third positive day in a row as the Dow gained 140 points on average volume. The advance/declines were 3 to 1 positive. We were up twice as much but sold off in the last half hour. When we got to the downtrend line on the S&P 500, I bought the OEX puts. We then raced higher through the line and the puts got slammed. I took the loss at around 65 % in the span of a few hours. This was a trade I should have avoided as I do not do well with the short term options. The market was telegraphing higher prices and I did not listen. I once again tried to impose my idea on the market and the market is always right. That said, as soon as I sold the puts the market dropped back to the downtrend line that it had broken through. The OEX puts that I bought regained their value. So perhaps this trade would have worked. We'll find out tomorrow. GE was up 1/3 on average volume. I should have taken the cue from here, as GE was stronger for the past couple of sessions. Again, I did not listen. Gold lost a few bucks on the futures. The dollar didn't do much today. The XAU lost 3 1/2. ABX fell 7/8, GG dropped 1/3 and NEM down just a touch. Volume here was nothing special. No trades in the gold shares for now. Mentally I'm feeling frustrated. I really should have just stayed on the sidelines today. Even if we drop tomorrow, I'm out of the OEX put position. So it's a no win situation and I've already booked the loss. The problem is being able to do the right thing when necessary under market conditions. I think that I just wanted to make a trade without the technicals all in line and I paid for it. I also could have bailed out with a smaller loss but I didn't. So there was nothing good from this trade. 2 days left for the September option cycle and I'll be on the sidelines. I'll have to put today behind me and go from here.

To the upside today as the Dow gained 44 points on average volume. The advance/declines were 3 to 1 positive. The overall market was stronger than the Dow. The market has the feel of wanting to go higher here. I did not try the OEX puts today but still may before Friday. If we get up to the down trend lines on the OEX or S&P 500, I might give it a shot. However as I've said before the short term trades are not my best. Economic data out tomorrow and that should move things around. GE was up over 1/3 today on average volume. That was another excuse not to buy the OEX puts today. Gold was up $16 and more in the aftermarket as the dollar was much weaker today. The XAU was up a buck. ABX rose 1/4, GG fell 3/4 and NEM gained 1/4. A mixed bag there. I think that I'm going to wait for a pullback to the up trend lines in the gold shares before I put on the next trade. I'll be looking at the October calls. Mentally I'm doing OK, could have slept better. Sometimes the hardest thing to do in the game is to do nothing. That is what I am facing at the moment. As much as I'd like to try something here with 3 days to go, the more prudent approach may be to just sit it out. I'll check the charts again tonight and decide what to do or not do.

An interesting session as the Dow was down for most of the day but made a last hour comeback to finish up 69 points. The advance/declines were negative and the volume was good. It feels like the Dow is trying to put in a bottom here. However I am considering some OEX puts before the week is out. We still have a down trend line that is in effect until broken to the upside. The European indices have already broken down through the congestion zones that the US indices currently find themselves in. With only 4 days to go on the September options the risk is high. I may have to consider going out to October but the premiums are very high. GE was off a touch on heavy volume. I'm still looking out to January there for the calls. No hurry. Gold took a hit to start the week, off $46 on the futures. We came back a bit in the aftermarket. The US dollar was higher today but closed off of its highs. The XAU was down 6 points but was much lower. ABX off 1 1/4, GG fell 2 1/4 and NEM shed 1 1/4. All of these issues were lower during the day as well. I thought about getting some ABX calls for this week but did not do it. Again, the risk in trading this week will be very high. The potential for profit somewhere is out there. However the chance for loss is just as great. Mentally I'm doing OK. The stock indices had an upside reversal today, opening lower and closing higher. We are more oversold than overbought as well. I think I will wait and see if we make it to the down trend line and then buy the OEX puts at that point. That's the idea at the moment.

A steep sell off to end the week as the Dow lost 303 points on average volume. The advance/declines were about 6 to 1 negative. I was leaning more towards the upside but that was obviously wrong. Troubles in Europe again and there is no end in sight there. The summation index will now head lower after todays action. The S&P 500 had a huge drop in August and we have stabilized and moved sideways since then. This is perhaps a bear flag implying much lower prices in the offing. The German stock market has already broken through to the downside. This is something to consider and keep in mind. GE lost 1/2 on good volume. We are back to test support at $15. If GE breaks down through $15, it could mean that the stock indices will follow. I'm still looking at the January calls there. Gold was up a couple of bucks as the US dollar soared. I'm not sure what is going to happen here because higher dollar prices are generally bearish for gold. However the flight to safety trade is still in vogue and gold is part of that. The XAU lost 3 7/8 today. ABX down 2/3, GG fell 1/2 and NEM off 3/8. Volume was average. I might try some gold share calls next week but it is extremely risky. Still overbought and staying there. Mentally I'm feeling tired. Yesterdays usual aftermarket routine was interrupted by a power failure. 5 days left in the September option cycle. Again, any trades for next week will be of the short term variety. The October cycle has an extra week. I'll check the charts over the weekend and consider what strategy to undertake for next week. I'd expect some follow through downside on Monday but after that, who knows? For now it's Friday afternoon and time for a rest.

Back to the downside today as the Dow lost 119 points on average volume. The advance/declines were about 4 to 1 negative. So where do we go from here? I certainly don't know. The case can be made for either direction since we are not overbought or oversold. I will try and not do anything stupid here but you never know. Bernanke blabbed today and tonight we get Obama. I'm favoring the upside here but not enough to take a position. GE lost 1/4 on light volume. I probably won't be trying the September 16 calls here. Too much risk. Gold made a comeback as all sell offs are being bought at the moment. It was up $40 on the futures and more in the aftermarket. The XAU rose 2 1/2. ABX gained 3/4, GG up 3/4 and NEM higher by 1 7/8. This despite the US dollar having another very good day to the upside. The gold shares are very overbought and staying there. I might try something here before expiration but again, the risk is high. The prudent thing to do would be to stay out for September at this point. Mentally I'm feeling OK. Not exactly sure what I'd like to do here but my bias is for higher prices for the stock indices in the short term. That's a guess as always. When in doubt, stay out as the saying goes. Not sure I'm going to do that. One more trading day in the shortened week.

The Dow soared to the upside today as it gained 275 points. The advance/declines were 7 to 1 positive. Volume was lighter than yesterday. The summation index should be back to moving higher after todays action. Europe, meaning Germany, had some good news for a change. The question now is whether this rally is for real. I certainly don't know. We aren't overbought or oversold here. The lesser issues such as the NASDAQ are performing well here and that usually leads to higher prices. However I will consider the OEX puts again once we reach near term resistance. We'll see if we get any follow through tomorrow before Obamas jobs speech. GE was up 1/2 on average volume. I am considering a short term call trade here for the September option cycle. But I may be too late as yesterday probably was the day to initiate it. There's only 7 days left on the options. I'm still looking to go out to January there as well. Gold took a hit today, down $55 on the futures. The US dollar was down as well as the flight to safety trade took a day off. Perhaps this is the beginning of the unwinding of that trade. That's a guess as usual. The XAU was up almost 1 1/2 as the gold shares did not follow gold today. ABX was up 7/8, GG gained 1/2 and NEM fell 3/4. Volume was average. Not sure what to make of the gold shares today. I do know that ABX and GG are right at their resistance of $55. If they break through that level there is nothing to stop them from going much higher. Overbought here on these issues but that may not matter. Might try a trade here before expiration. Mentally I'm feeling tired, did not sleep well. Volatility has returned to the stock indices as we were down 300 points early yesterday and today we gained 275. The trades have to be short term in nature I believe to be successful. That really isn't one of my strong points. I'll be keeping an eye on things as usual and we'll see what happens.

An interesting start to the week as the Dow lost 100 points on average volume. The advance/declines were about 3 to 1 negative. We started the day down hard and at one point were off 300 points. However there was never any follow through downside and we rallied almost 100 points in the last half hour. A short squeeze? Perhaps. I think it has more to do with Europe and perhaps some good news coming out of Germany tomorrow. But I don't know, of that we can be certain. I sold the OEX puts today for a 140% profit and it should have been more. The market did not react the way I wanted it to but I held on to the puts anyway. I should have dumped them early in the morning. I may buy them back before expiration but we'll have to see exactly what the market does from here. GE lost 1/2 on heavy volume. If GE is a proxy for the stock indices again then perhaps we're heading lower. It has been gapping down and is at support at $15. I'll keep an eye on it. Gold lost around $20 on the futures after hitting a new record high. The US dollar was stronger today and appears to be starting an uptrend. That could be important for the stock indices and gold going forward. The XAU was up 1/4. ABX gained 3/4, GG lost 1/8 and NEM was flat. Volume was good. The daily charts may have put in short term tops with todays action. The daily candlestick charts look like dojis at the end of an up move. We'll see what happens tomorrow. I still want to try the gold shares again when they get oversold. Mentally I'm doing OK. Still not impressed with the way I handled the exit of the OEX trade. As always, trading is an ongoing process. 8 days left in the September option cycle. I don't have any pressing ideas at the moment. The stock indices have the feel of wanting to go back up here but that is nothing to trade off of. I'll check the charts again tonight. I did have a thought of perhaps getting some gold share puts here. I'll review tonight as well. Had I properly exited the OEX trade, perhaps my confidence would be a bit better. We'll see what happens in Europe overnight and take it from there.

It was a downer on Wall Street today as the Dow lost 253 points on light volume. The advance/declines were 6 to 1 negative. It was a steep drop at the open and then we hovered around for the rest of the day. The employment report was a disaster, as no new jobs were created last month. I'm a bit surprised that we didn't drop even more. My OEX puts are solidly in the black. The question now is when to sell them. I'll consider the scenarios over the long weekend after checking the technicals. GE was down almost 1/2 on average volume. I might take my OEX cues from here. GE made a slight comeback in the afternoon. We'll see. Gold was the star of the day gaining $47 on the futures and another $10 in the aftermarket. The dollar was higher as well and the flight to safety trade is back. The XAU rose 3 1/2. ABX up 1 1/4, GG gained 1 1/3 and NEM tacked on 2 bucks. Volume was good. Looks like I sold the ABX calls too soon. Even though it was a profit, it should have been much more. Continuing to be overbought on all levels for gold but I think we are going to see new highs next week. I may just jump in and buy some more gold share calls as well. I'll consider it over the weekend. Money continues to flow in there and we are in the gold favorable month of September. Mentally I'm doing OK but a bit tired. Not all that happy about dumping the ABX calls early but you've got to move on. At least I'm on the right side of the OEX trade and the entry timing worked. Getting out right is the next challenge. A long 3 day weekend to consider things. I don't get the feeling that this downdraft is the beginning of something big to the downside but we'll see how it plays out. We're not short term oversold on the stock indices but could get there in a hurry. As I said, gold is very overbought but continues to attract capital. No easy way to trade that scenario. It's the unofficial end of summer with Labor Day weekend on tap. Time for a break.

It was another up and down session with the Dow closing the day with a loss of 120 points. The advance/declines were almost 3 to 1 negative. Volume was average. We were up around 80 points early in the day. The employment report will be the catalyst for tomorrow and then we have a long holiday weekend. I did purchase some OEX puts in the morning and they are in the black. I'm not sure how long I'll hold on to them. The stock indices are overbought but only on a short term basis. We'll see how it goes tomorrow. GE lost a dime on average volume. No trades there yet and there is no hurry. Gold lost a couple bucks on the futures and a couple more in the aftermarket. The US dollar was higher today. The gold shares were mixed as the XAU gained 1 1/3. ABX up 7/8, GG gained 1 3/8 but NEM lost 1/8. Volume was light. Looks like I should have held those ABX calls another day but as always hindsight is never wrong. I may try them again before the September expiration now as the relative strength is hard to ignore. What's also hard to ignore is the fact that the gold shares are both short and medium term overbought. I'll be keeping an eye on things of course. Mentally I'm feeling tired, did not sleep enough. So it's on to the next trade involving the OEX puts. The OEX is a much faster moving contract and that makes it more of a challenge to trade. If we are down tomorrow I'll probably hold the trade over the weekend. We'll see what the employment report brings, gauge the markets reaction and see what happens.