Stock markets around the world collapsed as a new strain of the corona virus hit the news wires. The Dow dropped 905 points on half day heavy volume. The advance/declines were better than 5 to 1 negative. The summation index is heading down. What was supposed to be a quiet light day of trading during the holiday was anything but that. I cannot remember the Friday after Thanksgiving being anything like today. But as always the market goes where it wants. Most everything was being sold as I'm sure margin calls went out. The S&P 500, like most of the major averages, had a gap lower to start the day. The short term technical indicators here are not yet oversold. So there's probably more selling to come. Throw in a tighter Fed stance and the party could be over for stocks. It is too soon to tell though. Gold rallied early on but it got sold as well. The futures finished slightly higher. The US dollar sold off as interest rates tanked on a flight to bonds. The XAU fell 2 1/4, while GDX dropped 1/3. Volume was good for a half days trade. Somehow the GDX January calls that I own stayed about the same despite the drop. Looks like some volatility premium was priced in. GDX has now broken its short term up trend line but did manage to close above the 50 day moving average. Perhaps I'm just looking for positives in a negative situation. The short term indicators here are oversold but not completely. Mentally I'm feeling OK. The VIX spiked much higher in a complete reversal of what yesterdays action said. It is now far above the 20 level and implies more volatility to come. Monday morning as well as next week should be pretty interesting. Was today an overreaction? Time will tell on that. The market doesn't like unknowns and that is what this new virus strain represents. We'll stick to the technicals which have now rolled over and are not yet completely oversold. Plenty to think about this weekend with 3 weeks left in the December option cycle. Europe and Asia got clobbered to end the week. It's Friday and time for some rest.

The Dow fell 9 points today on pre-holiday listless trading. The advance/declines were positive and the volume was light. The summation index continues lower. Some of the major stock indices had one day reversals to the upside including the S&P 500. The economic data went both ways today but many players decided to take the day off. More of the same for holiday shortened trading on Friday. Things won't get back to normal until next week. Gold drifted up four bucks today. The US dollar continued higher and interest rates were steady. The XAU and GDX had slight fractonal losses on very light volume. I sold the GDX January calls that I bought on Monday for a 20% loss. I did this in order to purchase the GDX January calls again at a closer to the money strike price, which I did. I was willing to take the small loss in order to get the strike price that I originally wanted. Now I could have held on to both positions but the money out there at risk would have been more than I had allotted to this idea. It still may or may not work but I felt this was the right thing to do today. We'll see going forward. Mentally I'm feeling OK. The VIX was lower today and the short term indicators have rolled over. The VIX is signaling higher prices coming for stocks. Europe and Asia were mixed in last nights trade. Happy Thanksgiving everyone.

We were looking for a decent upside day for the Dow and we got one today as it rose 194 points on average volume. The advance/declines remain negative though. The summation index is moving down. It's been anything but a quiet holiday week so far. We'll get plenty of economic data out tomorrow ahead of Thanksgiving. So I'd expect some more significant price movement before everyone leaves for the week. Friday will be a shortened session for stocks with the major players on the sidelines. The S&P was higher today but the short term indicators are not giving any kind of signal. Not overbought here anymore but not oversold either. Gold conitnued to drop as the futures shed $15 and closed below $1800. The US dollar finished little changed but interest rates continued to rise. The XAU lost over 1 3/4, while GDX dropped 1/2. Volume was average. GDX is still holding the up trend line that began in the beginning of October but is not yet completely oversold on a short term basis. My GDX January calls as shwoing a small loss. The reason to get into this trade has now been invalidated. Holding the trend line is the only way to keep holding this trade. I'm not sure that will happen though. We'll keep an eye on it going forward. Mentally I'm feeling OK. The VIX was up again today but did come off of its best levels. Overbought on the short term technicals here and that implies that we'll see higher stock prices going forward. We'll see if that happens in the coming days. I think the question here and now is has this selling been the beginning of something real to the downside or just anothe blip in the road on the way to more all time highs? Time will tell but I certainly don't have a good feel for the answer at the moment. Some of the major stock indices have now retraced back to their consolidation breakout points. Holding in here would be necessary for the bullish cause. Europe was lower and Asia mixed in last nights trade. We'll see what tomorrow brings.

It was a very volatile session and not what was expected for the beginning of a normally quiet holiday week. The Dow managed to hang on to a gain of 17 points on above average volume. The advance/declines were negative. The summation index is moving lower. Both the NASDAQ along with the S&P 500 had one day reversals to the downside, opening higher and closing lower. The market rallied early on the announcement the Fed chairman had been re-nominated to his position. An hour into the session we then had a sharp selloff. The market climbed its way back and we had decent gains going into the final hour. The market then dropped like a stone to finish the day negative in many of the major averages. I'm not sure what's going on here but clearly there's something brewing. Gold got clobbered on the Fed re-appointment as the futures fell over $40. The US dollar continues its climb and interest rates jumped. The XAU lost 2 1/2, while GDX dropped 2/3. Volume was good to the downside. My open order for the GDX January calls got filled. However it now appears that the inverse head and shoulders breakout on GDX has failed. The short term technical indicators for GDX are at mid-range. Unless GDX somehow holds in here at the 33 level, this trade will be a loser. The only thing this trade has going for it now is time. There is an up trend line at 32 but at this rate that won't hold either. We'll see what happens tomorrow. Mentally I'm feeling OK. The VIX jumped today and closed above both its 50 and 200 day moving averages. The short term indicators here are getting to overbought. Another day of decline would get us there. I expected this week to be benign and quiet with an upside bias. So far it has been anything but that. I'm not sure why. The Dow is overdue for a big upside day. I thought it would be today after this mornings announcement but it looks like the market has other ideas. Stay tuned. Asia and Europe were mixed overnight. We'll keep an eye on tonights developments.

The Dow continues to drop as the most watched index fell 269 points on good volume. The advance/declines were again close to 2 to 1 negative. The summation index is moving down. It was a mixed bag as the NASDAQ along with some other indices were positive on the day. The S&P 500 was lower and remains short term overbought. I'm not sure what to make of what's going on as the Dow is short term oversold. The NASDAQ conitnues to move higher with the summation index moving lower. The market price action is not making sense at the moment. I don't have any solid ideas on where we are going from here. Gold was down $13 on the futures. The US dollar was higher and interest rates were lower. The XAU shed 2 1/2, while GDX lost over 1/2. Volume picked up slightly to the downside. We are just about at the neckline and breakout point on GDX. It needs to hold as we have now seen the pullback that we were hoping for. GDX is almost at 33.50 and that is an important level to try and hold. My open order remains out there but I may have to adjust it again. Worst case scenario is that GDX doesn't hold the 33-33.50 area. If that occurs then the inverse head and shoulders pattern would be negated. For now I'm still a believer in the pattern and would like to own the GDX January calls. Mentally I'm feeling OK. The VIX was higher today but did come off of its worst levels. Not getting a good signal here one way or the other right now. I'm a bit confused as to what's going on in the market with the S&P along with the NASDAQ moving higher and most other averages selling off. With the summation index moving down caution is proper theme for now. Plenty of charts to peruse over the weekend with a shortened holiday week going forward. Plenty to ponder. Europe was lower and Asia mixed to close out the week. It's Friday afternoon and time for a break.

Volatility was the name of the game today as the Dow fell 60 points on average volume. The advance/declines were better than 2 to 1 negative again. The summation index is moving lower. The Dow was once again the laggard as both the NASDAQ and the S&P 500 were positive. The S&P along with the NASDAQ did close at new all time highs. It still remains short term overbought. We are getting kind of a mixed picture here as not all of the indexes are on the same page. Not exactly sure what that means going forward. Gold was off eight bucks on the futures. The US dollar was lower again along with interest rates. The XAU fell two points, while GDX was off 1/3. Volume remains light here. GDX continues to be short term overbought but the indicators have begun to roll over. Mentally I'm feeling OK. The VIX perked up today with the volatility and finished higher despite gains in some of the major indices. The short term technicals here are mid-range. Expiration Friday tomorrow ahead of a holiday week. I'd expect the volume to pick up as players will want to square positions before taking the week off. The summation index is moving lower but we are not seeing a drop in prices. Perhaps we're on the cusp of a move higher for the major averages. That's simply a guess at this point. Europe and Asia were lower overnight. We'll see how expiration Friday turns out tomorrow.

We spent the day on the downside as the Dow lost 210 points on average volume. The advance/declines were around 2 to 1 negative. The summation index is now moving lower. The Dow was the lead underperformer today. No real news to speak of as the S&P 500 stalls in the area of new all time highs. It remains short term overbought. I'm still in the bullish camp here unless the summation index really starts to drop. The NASDAQ is on hold for new highs as well. My thinking is that by the close on Friday theses indices will hit new all time highs. Gold was up almost $15 today as both interest rates and the US dollar dropped. The XAU and GDX had fractional gains on light volume. I adjusted my open order for the GDX January calls. It appears to me now that GDX is simply moving sideways to digest the recent gains and will not make a return trip to the neckline breakout point. This of course could change going forward but that's how things appear at the moment. My hope is for some kind of decline but I think there are quite a few out there with the same idea. The market rarely cooperates. I'll continue to try and remain patient because the ideal time for this trade is long gone. Mentally I'm feeling OK. The VIX was higher today and that fits the lower overall stock prices. The short term technical indicators here have now turned back up. This implies more near term selling which I don't agree with. So we will see where things go from here. We haven't seen the usual positive price bias of expiration week yet. There's only a couple of days left. Asia was lower and Europe mixed in overseas trading. We'll keep an eye on the overnight developments.

Moving higher today on better than expected retail sales as the Dow gained 54 points on light volume. The advance/declines were negative though. The summation index continues to track sideways. The overall market was much stronger than the Dow, with the NASDAQ leading the way. As long as that's the case the bulls are in control. Expect more new all time highs for the S&P 500 as the week progresses. Still short term overbought for the S&P but that won't stop things from going higher in my view. Gold was off $15 on the futures as the US dollar continues to climb. Interest rates were higher as well. The XAU shed 2 1/4, while GDX lost almost 2/3. Volume was light. If the selling continues perhaps I'll get the chance to purchase the GDX January calls. A pullback from the breakout of the neckline for GDX would take us back to around the 33.50 area. GDX does still remain overbought here. We'll see how it goes. Mentally I'm feeling OK. The VIX was lower today. The short term technical indicators here are neither overbought or oversold. My guess here is that the VIX will trend lower as the market goes up this week. I'm expecting the usual positive expiration week bias to be in effect. I'd also expect the volume to start picking up as next week is holiday week with many players on vacation. Not much more economic data due out this week. We'll keep an eye on things but I would expect more buying as the week goes on. Both Europe and Asia were mixed in last nights trade. We'll see what tomorrow brings.

A day of hanging around as the Dow fell 12 points on light volume. The advance/declines were negative. The summation index is trending sideways. Not much change for the major averages today. It is expiration week though so we'll see how the rest of the week goes. Retail sales data out tomorrow could be a market mover. The S&P 500 remains short term overbought. Gold was off a couple of bucks. Both the US dollar and interest rates went up. The XAU and GDX had slight fractional gains on light volume. My open order for the GDX January calls remains out there. Mentally I'm feeling OK. The VIX was up just a bit today and that fits the market action. A shorter post here today as the blog is later than usual. Europe was higher and Asia mixed overnight. We'll see how Tuesday goes.

Continuing to move higher as the Dow gained 179 points on light volume. The advance/declines were positive. The summation index is trying to turn back up. Once again the NASDAQ led the way higher. The S&P 500 had a nice gain and the short term technical indicators are turning back up. Option expiration week is on tap so perhaps we'll head back to new all time highs again. We are still pretty far removed from the 50 day moving average though. Gold added a few bucks as the US dollar had a slight drop. Interest rates finished little changed. The XAU and GDX had fractional gains on light volume. GDX remains short term overbought. Any drop in GDX would be a chance to get some of the longer term options for January or March. All signs point to gold starting a multi-week move higher in my opinion. Still hoping for a back test of the neckline breakout in the inverse head and shoulders pattern for GDX. That's the most we can hope for as this move in the gold shares has been missed. Mentally I'm feeling OK. The VIX continued lower and that fits with todays rally. Indicators here have turned back down which suggests that we'll see higher stock prices next week. We'll see. Not much else to add today as it was a lower week for the S&P on light volume. A pause was needed after the extended run up that we've seen since the beginning of October. I'd expect us to be higher again by the end of next week. Plenty of charts to go over this weekend as usual. We'll be looking to get aboard the gold train next week if we see some weakness. May not happen though. Europe was higher with the exception of the FTSE. Asia was up. It's Friday afternoon and time for a break.

Mixed would be the beat way to describe todays market price action as the Dow fell 158 points on light volume. The advance/declines were positive. The summation index is starting to trend sideways. The overall market was stronger than the Dow with the NASDAQ posting the best gains. The S&P 500 was barely higher. Still pretty far above the 50 day moving average here but there's nothing in the way of more gains to come in my mind. Option expiration week on tap with its usual positive bias. The only thing that would change my mind on the S&P is if we continue lower tomorrow, which would make the weekly candlestick chart suspect. We'll see how Friday goes. Gold continues higher as the futures tacked on $15. The US dollar was higher again along with interest rates. The XAU climbed almost 4 1/2, while GDX added 3/4. Volume was good. I did put in another order for the GDX January calls but we'd need to see some pullback for it to get filled. We've broken out of the head and shoulders pattern for GDX. We might get a chance for the calls if we see a back test to the neckline in the coming days. GDX is now above its 200 day moving averge but is getting short term overbought. Gold is moving up despite what interest rates and the US dollar are doing. That is bullish. Mentally I'm feeling OK. The VIX was lower today in a mixed market. It wasn't a surprise since this indicator does not stay overbought for extended periods of time. The only concern here for the bulls was a lower VIX but not exactly a rebound across the board in stocks. We'll see how this plays out moving forward. Europe and Asia were generally higher overnight. We'll close out the trading week tomorrow.

Another day of selling as the Dow fell 240 points on good volume. The advance/declines were better than 2 to 1 negative. The summation index is beginning to turn sideways. Inflation data came in hotter than expected was the media culprit. But we know that the market was overbought to the extreme and the only solution would be some kind of decline. I still believe that it is just a bump in the road and not the beginning of an extended decline. The NASDAQ did lead the way lower though. The short term indicators for the S&P 500 have rolled over but do still remain in overbought terrotory. We'll see how the rest of the week plays itself out. Gold rallied with the December futures up over $20. The US dollar climbed along with interest rates. The XAU was up almost 2 points, while GDX gained about 2/3. Volume was heavy as the neckline of the head and shoulders pattern for GDX was broken. This is a move that should be chased. GDX is stalling at its 200 day moving average but all signs point to higher prices going forward. I canceled my open order for the January calls and will decide what to do tonight with the next order. I'll have to move to a higher strike price but the rally in the gold shares is for real. Gold moving up on higher inflation is what we would expect but it hadn't been previously happening. Gold moving up with a stronger dollar and higher interest rates is a positive sign. Money is moving into this space and has been quietly for the past month. It doesn't appear that waiting for another pullback here is the proper strategy. Mentally I'm feeling OK. The VIX was again higher today and is overbought. It remains below the 20 level. My guess is that the decline will be short lived according to this indicator. Most of the major stock indices remain pretty far from their 50 day moving averages still, even with the two day decline. So perhaps we will see some more near term selling. Europe was higher and Asia lower in last nights trade. We'll see what tomorrow brings.

We saw some selling today and that was to be expected. The Dow fell 112 points today on light volume. The advance/declines were negative. The summation index is moving higher. The inflation number today came in where expected but the market was overdue for some pullback. The NASDAQ led the way down but I don't think that the rally has ended. This is just a needed pause before we move higher in my humble opinion. The S&P 500 remains short term overbought. Gold continued higher with the futures up six bucks. The US dollar was lower along with interest rates. The XAU rose 1 3/8, while GDX was up 3/8. Volume was light. Not yet short term overbought on the indicators for the gold shares. I would really like to chase this move higher in GDX but cannot bring myself to do it. I missed the opportunity for the calls last week when I did not adjust the price corrrectly on my open order. The inverse head and shoulders pattern on GDX remains intact but hasn't broken through the neckline yet. I'm hoping now for a double right shoulder in order to buy the calls but hope is not a trading strategy. Mentally I'm feeling OK. The VIX was higher today and that fits with todays decline. The VIX was pushed back at its 50 day moving average and remains below the 20 level. The short term indicators here are now overbought. This is one of the reasons to not be too bearish near term. The VIX doesn't stay overbought for lengthly periods of time. It should roll back down and that would correspond with a gain for stocks. We'll see how the market digests the next inflation report tomorrow. Asia was mixed and Europe lower last night. We'll keep an eye on the overnight headlines.

It was a day of just hanging around as the Dow rose 103 points on average volume. The advance/declines were positive. The summation index is moving up. The Dow was the out-performer today as the other main indices had slight gains to new all time highs. Waiting on the inflation data due out on Tuesday and Wednesday. Still overbought to the extreme on the major stock indexes. I believe that a sharp drop is coming and perhaps the inflation data will set things off. Or not as this rally has had legs galore. I think that it's been up 8 days in a row now for the S&P 500. Going straight up usually doesn't end well. Gold gained $9 on the futures. The US dollar was lower and interest rates ticked up. The XAU was up 1 1/8, while GDX added over 1/8. Volume was light. My open order for the GDX January calls remains. I did notice some extremely high volume for a couple of strike prices on the GDX January calls. Perhaps the big money is loading up here. We'll see tomorrow if it expanded the open interest. The short term technical indicators for GDX are mid-range. Mentally I'm feeling OK. The VIX was higher again today with a gain in stocks. This does not fit again as the short term indicators here are moving higher but we haven't seen a decline in stock prices. It may mean that we will get some kind of blow off top soon but that's just a guess on my part. What is the case there is a disconnect between the VIX and stock prices at the moment. I'm not sure what it means. Price action was muted in Europe overnight, with Asia finishing mixed. We'll see how things go tomorrow.

Still moving higher as the Dow gained 203 points on good volume. The advance/declines were 2 to 1 positive. The summation index is moving up. The jobs numbers were better than expected and the market took off from the start. New all time highs on many indices again as the rally seemingly has no end. Overbought, staying that way and who knows how long it will last. Moving straight up and we know that the end won't be pretty. Overdue for some kind of pullback but none arrives. The Dow was the leader today. Gold rallied as the futures gained $25. The US dollar was a bit lower and interest rates dropped. The market reaction for gold, the dollar and interest rates was the exact opposite of what you'd expect from a stronger jobs report. The XAU climbed over 3 1/2, while GDX was up a point. Volume was good. It appears that the inverse head and shoulders pattern for the gold shares is real. We have yet to break the neck line but the implications are that the gold shares still have a long way to go. Have I missed this trade again by not purchasing the GDX January calls this week? Maybe. But I'll be looking for some weakness next week to buy some and I'll move the strike price higher to get filled. It looks like a trade that will work out at this point. But we all know how markets are. They go where they want. Mentally I'm feeling OK. The VIX was higher today and that certainly doesn't fit with a market up over 200 points. It is perhaps implying that some selling is due that will be short lived. We'll see. All of the stock indices are overbought and pretty far from their 50 day moving averages. Something has to give. We should at least see a day of pretty good selling next week. It doesn't mean that the rally will end but the overbought conditions need to be relieved. That will perhaps give us the opportunity to purchase some of the gold share calls going out to January. That's the plan for now since the ideal time to purchase has passed. We'll go over the charts as usual this weekend to see if there's anything else that looks promising. Europe higher and Asia generally lower to finish the week. It's Friday afternoon and time for a break.

A mixed bag today as the Dow fell 33 points on good volume. The advance/declines were negative. The summation index is moving up. The overall market was much stronger than the Dow with both the S&P 500 and the NASDAQ posting good gains to new all time highs. Remaining extremely overbought for the S&P 500 and some type of pullback is imminent. But that would only be a bump in the road as higher prices seem to be in the cards for the near future. Perhaps a run up into the November option expiration. The S&P is getting pretty far from its 50 day moving average and that is a condition that cannot last. But we won't try and step in front of the ongoing freight train. Gold rallied back as the futures rose thirty bucks. The US dollar was higher and interest rates were lower. The XAU dropped a point, while GDX shed a dime. Volume was average. Todays gold share price action was the oppostie of yesterday. Underperformance of the gold shares with a $30 rally in gold is not a positive sign. I'm still leaving my open order for the GDX January calls out there though. The inverse potential head and shoulders pattern remains in place. As long as that is the case, the GDX calls still make sense to me. Mentally I'm feeling OK. The VIX was higher today and that doesn't fit with the rise in the overall market. A possible double bottom is forming in the VIX but this indicator doesn't usually lend itself to technical patterns. Still oversold here but not extremely so. We've got the employment report to sift through tomorrow and the markets reaction to it. Nothing seems to be able to derail the flow of money into stocks at the moment. Europe and Asia were both higher overnight. We'll close out the trading week tomorrow.

Up, up and away we go as the Dow rose 105 points on good volume. The advance/declines were 2 to 1 positive. The summation index is moving up. The Fed offered no surprises and stated that it would start to cut back on the liquidity beginning next month. This was already in the market and we rallied after the announcement. Now cutting back on liquidity would normally be an excuse to sell but not today. This is the world we live in, where money is created out of thin air via unregulated cryptocurrencies and the like. Brave new world indeed. The overall market was much stronger than the Dow with the usual new all time highs set. Still short term overbought and staying that way. Not sure how long this will last but probably longer than you think. Gold was down $15 on the futures but came off of the lows. The US dollar was a bit lower and interest rates had a slight rise. The XAU was up 1 1/2, while GDX gained 1/3. Volume was about average. The gold shares are back to outperforming the metal itself and that is bullish in my book. I adjusted up the price I'll pay on my open order for the GDX January calls but it still wasn't filled. Might have missed this trade again but we'll see how things go tomorrow. The potential inverse head and shoulders pattern on the daily GDX chart is still in place. I may just buy the calls ahead of the employment numbers but we'll see. Mentally I'm feeling OK. The VIX was lower and the short term technical indicators here have rolled back over. This implies a continuing rally for stocks. And who's to argue with that? There's no overhead resistance and no sellers to be found. We'll go along for the ride but we are starting to move straight up and that always ends with a corresponding drop. But we can only guess when that would happen. Asia was lower and Europe mixed overnight. We'll see how it goes tomorrow ahead of Fridays jobs report.

It's a rally that won't stop as the Dow climbed 139 points on what lately passes for average volume. The advance/declines were negative. The summation index continues higher. New all time highs for many of the stock indices. The TRAN gained over a thousand points in todays session. Are things getting a little frothy here? It sure seems like it but the market can go higher than you think sometimes. Overbought for a while now and staying there. Will the Fed throw some water on the fire? We'll find out tomorrow. Gold was off $6 on the futures. The US dollar was a bit higher and interest rates remain steady. We should get some kind of movement in rates with the Fed announcement tomorrow I would think. The XAU and GDX had fractional moves lower on light volume. GDX is trying to hold the 50 day moving average and is short term oversold. This would be the time to attempt the calls for GDX but my order doesn't look like it will get filled. I might have to adjust the price higher, which I don't really want to do. I suppose I'll wait and see what happens tomorrow and go from there. Mentally I'm feeling OK. The VIX was lower today but its short term indicators are still pointing up. A rollover of the indicators here and the rally will continue to grow. Again, tomorrow will be an interesting session with the market reaction to the Fed. We'll watch for any suprises. Asia was lower and Europe mixed as the world waits on the Fed. We'll keep an eye on the overnight headlines.

We begin Fed week with a gain of 94 points on the Dow. The advance/declines were around 3 to 1 positive and volume was light. The summation index is moving higher. Yes, we'll get the Fed this week and it's expected that they will announce a tapering of the monthly bond purchases that have gone on since the pandemic began. This isn't exactly bullish news but it already been priced into the market most likely. In the meantime we continue to hit new all time highs in the stock indices and there is no overhead resistance. We remain short term overbought for the S&P 500 as is the case when a rally is underway. There's still plenty of money around to support stocks at the moment. Gold was up around $10 on the futures. The US dollar was lower and interest rates remained steady. The XAU was up 1 1/8, while GDX added 1/8. Volume was light. GDX is trying to hold on to its 50 day moving average. Not yet short term oversold here. I did adjust my open order for the GDX January calls but may need to do so again in order to get filled here. I'm looking at a potential inverse head and shoulders pattern on the GDX daily chart. The key word here is potential because the pattern has yet to be filled out. Ideally GDX would get down to the 31 level and my open order might get filled. The market though rarely cooperates with what anybody wants. Mentally I'm feeling OK. The VIX was slightly higher today which doesn't fit with an up market. We'll see what that means going forward. There will be plenty of market moving material to digest this week as we'll get economic numbers including the employment report along with the Fed. Earnings continue to come out as well. Plenty of time for a trade or two in the November option cycle. Europe was higher and Asia mixed to start the week. We'll see what tomorrow brings.

It was a one day reversal to the upside as the Dow opened lower and closed higher. The most watched index gained 89 points on good volume to finish the month of October. The advance/declines were about even. The summation index is moving up. Earnings came in mixed in the morning but traders used the weakness as an excuse to buy. Several indices hit new all time highs including the S&P 500. There's still plenty of money hanging around to be put into stocks. As long as the liquidity lasts, the rally has legs. There is nothing on the horizon at the moment to stop the bulls. Gold took a hit today as the futures fell around $20. The US dollar had a spike up after yesterdays drop. Interest rates remained steady. The XAU fell 3 7/8, while GDX shed 7/8. Volume was average. The short term indicators for GDX are dropping and there's still some room to go before reaching oversold. Another day like today and my open order for the GDX January calls could get filled. I'll rethink this idea over the weekend. Mentally I'm feeling OK. The VIX bounced around and finished lower today. The short term indicators here are starting to roll back down which would prolong the up trend. This is what I expect to occur. We'll get beginning of the month money flows coming in early next week. Monthly trends look bullish for stocks as well on the candlestick charts. Octobers gains erased Septembers losses. The trend remains up with nothing as of yet to halt the rally. We'll enjoy the ride. We'll be going over all the charts this weekend as usual. Europe and Asia were mixed to finish the week and the month. It's Friday afternoon and time for a break.

Back to the upside as the Dow gained 239 points on average volume. The advance/declines were better than 2 to 1 positive. The summation index is moving higher. Earnings continue to pave the way up as the rally continues. New all time highs for some of the major stock indices and there is no overhead resistance. Money is flowing into stocks. Gold was only slightly higher as the US dollar had a decent drop. Yields were up marginally. The XAU fell 1 2/3, while GDX lost 1/2. Volume was light. The gold shares are starting to underperform now so perhaps my open order for the GDX January calls has a chance to get filled eventually. The short term technical indicators for GDX have started to roll over. Mentally I'm feeling OK. The VIX was lower today and that fits an up market. The pause in prices yesterday was just a temporary stop in the advance according to what I'm looking at. The market is in rally mode on earnings and I don't see that stopping anytime soon. End of the month tomorrow and we might get some swings on adjustments. But the trend is up until further notice and will probably go on longer than you think. That's my opinion at the moment. Asia was lower and Europe mixed overnight. We'll close out the trading for October tomorrow.

Some selling today as the Dow fell 266 points on average volume. The advance/declines were better than 2 to 1 negative. The summation index is still trending up. The Dow was the worst performer today as the NASDAQ only finished flat. The S&P 500 was down but much less percentagewise than the Dow. The short term indicators are trying to roll over for the S&P but remain in overbought territory. Perhaps we will get a shot at the SPY November calls going forward. Some selling is to be expected because we were at overbought extremes. Gold was up a few bucks on the futures. The US dollar was a bit lower and interest rates dropped. The XAU dropped a point, while GDX was off fractionally. Volume was light. The gold shares continue to hold up well. My open order for the GDX January calls remains. Mentally I'm feeling OK. The VIX was higher again today and is relieving its oversold condition. Is this the beginning of a sustained decline? I don't think so. The short term indicators for the VIX have now turned around and are moving up. We'll keep an eye on it but I think a pause in the rally is about all we'll see. I could be wrong. Earnings continue to arrive and they haven't been all that bad. We'll get the first look at the 3rd quarter GDP tomorrow. Europe and Asia were lower overnight. We'll keep an eye out on tonights headlines.

Today the Dow managed a 15 point gain on average volume. The advance/declines were negative. The summation index is moving up. The market did come off of the highs for the day. Pretty much waiting for more earnings reports along with the rest of the weeks economic data including the first look at 3rd quarter GDP. Gold was off around $15 on the futures. The US dollar was higher and interest rates remained steady. The XAU and GDX had fractional losses on light volume. The gold shares continue to out perform the metal itself and that is bullish. I am still interested in getting some January gold share calls if we ever see some type of pullback. The recent advance in GDX has had staying power as the short term overbought condition remains in place. Hoping to see short term oversold at some point between now and the end of the year in order to purchase the January calls. That is the plan at the moment. Mentally I'm feeling OK. The VIX was higher today but remains in a short term oversold condition. It is still suggesting that the rally has plenty of legs and I'm inclined to agree. We may not see an entry point to attempt the SPY November calls. Europe higher and Asia generally lower in last nights trade. We'll see what tomorrow has in store.

Another day another gain as the Dow was up 64 points on average volume. The advance/declines were positive. The summation index is moving higher. The overall market was much stronger than the Dow, with the NASDAQ leading the way. We're still short term overbought for the major indices and staying that way. The S&P 500 set another new all time high and there is no overhead resistance. The S&P had its 5% correction and now we'll see how far it can go on earnings. The bulls are in control. Gold was up around a dozen on the futures and closed above the $1800 level. It also broke the down trend line that has been in effect for about 5 months. The US dollar was slightly higher and interest rates slightly lower. The XAU was up 2 1/3, while GDX added 3/8. Volume was light. Like the overall market, the gold shares are short term overbought and staying that way. At this rate my open order for the GDX January calls won't get filled. Mentally I'm feeling OK. The VIX was a bit lower and remains extremely short term oversold. This short term condition will have to resolve itself with some selling but we cannot guess exactly when this will occur. I'm thinking sooner rather than later but who knows? That might give us a set up for the SPY November calls because any selling would be brief in my opinion. We'll see. End of the month coming on Friday. Plenty of economic data coming out during the week as well. Europe was higher and Asia mixed overnight. We'll see how things go in the after hours.

Volatility returned today as the major stock indices bounced around. The Dow gained 74 points on light volume. The advance/declines were about even. The summation index is moving up. The overall market was weaker than the Dow with both the NASDAQ and the S&P 500 lower. Negative earnings reports were to blame for the NASDAQ slump. We'll need to see the NASDAQ rebound soon or there is a potential double top forming there. That certainly would put a crimp in our bullish outlook. Hasn't happened yet though. Still short term overbought for all of the major indexes. Gold was up over ten bucks on the futures. Both interest rates and the US dollar were lower. The XAU and GDX had fractional gains on above average volume. They did finish well off of the highs though. Gold itself has seemed to find a bid and is on the cusp of breaking through its down trned line from early June. At this rate my open order for the GDX January calls won't get filled. Mentally I'm feeling OK. The VIX also bounced around during the session and finished higher. It is at such a low level that it still implies that the rally has plenty of room to go. We'll see. All in all it was a psotive week for stocks and we will have to see how the earnings play out going forward. I'll be checking the charts as usual over the weekend. Europe was higher and Asia mixed to finish the trading week overseas. It's Friday afternoon and time for a break.

The Dow was off 6 points today on what now passes for average volume but it still seems light to me. The advance/declines were slightly negative. The summation index continues higher. The overall market was much stronger than the Dow with the NASDAQ leading the way. That is bullish. The S&P 500 set a new all time closing high. Overbought, staying that way and the trend is up until further notce. Gold was slightly lower today. The US dollar was a bit higher along with interest rates. The XAU and GDX had slight fractional losses on light volume. My open order for the GDX January calls remains out there. Mentally I'm feeling OK. The VIX was still lower today. It remains short term oversold. The short term technical indicators are as oversold as they've been in a long time. The VIX says that the rally will live on. We will not argue with that. I suppose we'll just have to see how high things can go. Perhaps try the SPY November calls if we do get some kind of pullback. Premiums do remain high though as there is plenty of time in the November option cycle. Europe and Asia were lower overnight. We'll close out the trading week tomorrow.

Continuing higher as the Dow gained 152 points on light volume. The advance/declines were better than 2 to 1 positive. The summation index is moving up. Short term overbought for the major stock indices, with the S&P 500 just a hair off of closing at a new all time high. Stocks are poised to go higher with earnings season looking to be the catalyst. Declines can be bought if and when we experience any. Gold was up around $15 on the futures. The US dollar continued its decline, while interest rates remained steady. The XAU was up 1 1/2, while GDX gained 1/3. Volume remains light here. Mentally I'm feeling OK. The VIX was still lower and still is short term oversold. This is textbook behavior for this indicator during rallies. Therefore we can be quite certain that the rally has legs. Once again short term declines can be bought. Once we get past the old highs for the major stock indices there will be no overhead resistance. The bulls are now in control until further notice. The NYA has already blasted off to new all time highs. Other indexes most likely soon to follow. Europe was higher and Asia lower with the exception of the Hang Seng last night. US markets due for a pause but only a pause it would be.

Getting closer to new all time highs as the Dow was up 199 points on light volume. The advance/declines were positive. The summation index is moving higher. The rally lives on as the S&P 500 is now short term overbought. We may see a pause here but not a decline that can be traded in my view. How high we go will be determined by the coming earnings reports. The option premiums on the SPY November calls are still pretty pricey as they include the extra trading week in this cycle. Patience for now. Gold was up around $5 on the December futures contract. The US dollar was lower and interest rates were higher. The XAU gained 1 3/4, while GDX was up 1/4. Volume was very light. The gold shares remain short term overbought but just like the overall stock market they can stay that way during rallies. My open order for the GDX January calls will only be filled if we see some decline. Mentally I'm feeling OK. The VIX was lower yet again today and that fits an up market. Remaining short term oversold as well. It still points to this rally having legs. We may see some hesitation for the S&P here as we are close to the all time high. But that would just be temporary in my view as the measuring objective of the reverse head and shoulders pattern for the S&P points to higher prices from here. So we'll ride the tide higher and take it from there. Europe and Asia were generally higher overnight. We'll see how things go tomorrow.

We had a mixed bag to start off the trading week as the Dow was lower and other major indices higher. The Dow fell 36 points on light volume. The advance/declines were slightly negative. The summation index continues higher. Both the NASDAQ and the S&P 500 sported gains with the NASDAQ leading the way. As long as the small stocks continue to show relative strength, the trend is up. The reverse head and shoulders pattern for the S&P 500 implies new all time highs are conming soon. Gold was off a few bucks on the futures. Both the US dollar and interest rates finished little changed. The XAU fell 1 1/2, while GDX shed 1/3. Volume was pretty light. I still have an open order in for some GDX January calls. Mentally I'm feeling OK. The VIX finished little changed and is short term oversold. The low reading here suggests that the rally has legs. I'm inclined to agree. Plenty of time for ideas with an extra week in the November option cycle. For now we'll be patient and wait for the next set up. Asia was mixed and Europe lower to begin the week. We'll keep an eye on the overnight headlines.

The rally continued as the Dow ws up 382 points on light volume for an option expiration Friday. The advance/declines were about even. The summation index is moving higher. All signs are pointing to new all time highs coming in the near future. The S&P 500 is getting short term overbought but remains that way in uptrends. The TRAN has led things higher this go round. One of the caveats here is the light volume. We also have the Dow as the outperformer which isn't overly bullish. We'd rather see the NASDAQ lead the way. But we do have enough going in a positive direction to see the rally continue. The breadth today doesn't match the price gains, so some near term weakness would not be a surprise. But all in all you'd have to say we'll be moving higher from here. Gold dropped over $25 on the futures. The US dollar finished little changed but interest rates moved up. Although GDX broke through its down trend line from September, gold itself did not and was turned back today. However the gold shares leading the way is bullish and I do expect higher prices in this complex going forward. The XAU and GDX had fractional losses on light volume. They remain short term overbought. I did place an open order for some GDX January calls that will take some decline in GDX in order to get filled. A pullback to the down trend line just broken might do the trick. We'll be keeping an eye on it. Mentally I'm feeling OK. The VIX continued lower and is short term oversold. During rallies the VIX stays oversold for an extended period of time. My guess is that is what we are about to see in this indicator. It was a constructive week for the S&P 500. The weekly chart indicators are in the process of or have already turned back up. That says that the rally will continue and probably the coming earnings will be the catalyst. The S&P just had a 5% correction and it looks like that was enough at the moment. Of course things could change going forward but for now it appears that declines can be bought. I'll be checking the charts over the weekend as usual. Europe and Asia were higher to end the week. It's Friday afternoon and time for a break.

The Dow roared ahead today and gained 534 points on light volume. The advance/declines were better than 3 to 1 positive. The summation index is now moving higher. Inflation data was slightly weaker than expected and that will be the excuse. The S&P 500 broke above the down trend line that has been in effect since the beginning of September. Depending on where you draw the neckline, a case can be made that the inverse head and shoulders pattern for the S&P is valid. It would imply a run to new all time highs in the coming weeks. The only drawback here is the light volume. However for now it looks like declines can be bought as the tone of the market has changed. Gold was up a few bucks on the futures. Interest rates continued their decline and the US dollar was slightly lower. The XAU rose another 3 points, while GDX gained 3/4. Volume was good. The trend is now up for the gold shares and we will be purchasing some calls on the next pullback. Short term overbought now for GDX. We will be looking for a throw back to the down trend line that was just broken. Somewhere around the 31 level although the ideal time to buy the calls has passed. Mentally I'm feeling OK. The VIX was lower today and is comfortably below the 20 level. The short term indicators here are oversold but I'm not looking for any kind of move back above 20 anytime soon. The down trend for stocks has run its course for now. November has an extra week in its option cycle so premiums will be high. I suppose we'll just have to be patient for the next opportunity. Asia was generally higher and Europe up in last nights trade. Expiration Friday on tap for tomorrow.

It was a back and forth session with the Dow finishing basically unchanged. Volume remains light. The advance/declines were positive. The summation index is trying to turn back up. The overall market was stronger than the Dow with both the NASDAQ and S&P 500 higher. The inflation data was a bit higher than expected but did not have the effect on market action that I expected. The short term indicators for the S&P remain mid-range so there's still a chance for things to go either way. The inverse head and shoulders pattern on the S&P 500 has yet to resolve itself or fail. I'm getting the feeling that it will be valid and break through the controlling down trend line and change the scenario from bear to bull. The market breadth has shown improvement lately. We'll see what happens as time goes on. More inflation data out tomorrow. Gold took off to the upside and the futures gained around thirty bucks. The US dollar fell along with interest rates. The XAU climbed 4 1/4, while GDX gained a point. Volume was heavy to the upside. GDX closed above its 50 day moving average. It also broke through a down trend line that has been in effect for months. We missed out on the GDX October calls. The next time GDX gets short term oversold, we will try the calls. The weekly chart for GDX has just began to rise and it looks like there is plenty of upside to come in the future. Mentally I'm feeling OK. The VIX was lower and closed below its 50 day moving averge. The short term indicators here are oversold but can remain that way during market rises. If stocks continue higher tomorrow, we'll know we are in one of those instances. If the market rolls back over, then the down trend line on the S&P 500 is still in charge. I think we're at an important juncture for stocks going forward. We'll have to see how it turns out with only a couple of days left in the October option cycle. Asia was mixed and Europe higher in last nights trade. We'll keep an eye on the overnight developments.

Another day and another decline as the Dow fell 117 points on light volume. The advance/declines were positive though. The summation index is still tracking sideways. Waiting on the inflation data would probably be the best way to describe todays price action or lack of. The short term technical indicators for the S&P are now mid-range so things could go either way here. Although I was committed to the downside there is a possible inverted head and shoulders pattern on the daily S&P chart. With only 3 days to go in the October option cycle, as much as I'd like to attempt another trade here the prudent choice would be to stay on the sidelines. We'll see. Gold gained $7 on the December contract. The US dollar was a bit higher and interest rates dropped. The XAU was up 1 7/8, while GDX rose 1/2. Volume was better than average. The gold shares are getting close to short term overbought. Mentally I'm feeling OK. The VIX was just a bit lower today and is hanging around the 20 level. It is oversold but not extremely so. Hanging around its 200 day moving average. I'm not getting a good feel for which way it is going to go here. When in doubt, stay out is an old market adage. I suppose I won't be surprised one way or the other with what happens tomorrow. I probably still would like to own those SPY puts that got stopped out. That was the original plan for the week. I can't think that the inflation reports due in the next couple of days won't show added price pressure. We'll find out tomorrow. The recent lighter market volume also shows not a lot on interest in owning stocks right now. Europe and Asia were lower overnight. We'll see what Wednesday brings.

The Dow fell 250 points on a partial holiday Monday to begin the week. The advance/declines were negative and volume was pretty light. The summation index is still tracking sideways. The market rallied early on in the morning and I was stopped out of my SPY October puts for a 30% loss. Then things turned around back to the downside for the rest of the session to finsh near the lows of the day. There is nothing more frustrating than to get stopped out of a trade only to see it work the way it was supposed to. The down trend line for the S&P 500 remains in force and I do believe that we'll be going even lower from here. I did try and buy some more SPY October puts after I was stopped out but the order wasn't filled. The short term technical indicators for the S&P are starting to roll over. Gold was off a couple bucks as the US dollar was higher and rates ticked up slightly. The XAU and GDX had slightly fractional losses on light volume. The short term indicators here are beginning to roll over as well. Mentally I'm trying not to let getting stopped out of the SPY trade affect me going forward. There's only 4 days to go in the October option cycle and trying another trade here would be very risky. That said if we do happen to move up tomorrow morning, I may be willing to attempt the SPY puts again. But I feel that it may already be too late. The VIX was up today and that fits the downside that we saw. It is right at the 20 level. A rise above 20 will bring more volatility and more selling. That's what I believe will happen. I could be wrong. Inflation data due on Wednesday and Thursday will most likely be moving the markets. Asia was generally higher and Europe mixed to begin the trading week overseas. We'll keep an eye on the overngiht developments.

It turned out to be an unexpected quiet session on Wall street as the Dow fell 8 points on very light volume. The advance/declines were negative. The summation index is tracking sideways. The jobs report came in weaker than expected and the market reaction was muted. We spent the day in a sideways channel. Neither buyers nor sellers could move things their way. The S&P remains perched at the down trend line that has been in effect for the past month or so. The short term technical indicators are at mid-range so it could go either way. My SPY October puts are still showing a small profit. I'll just have to wait and see where we go on Monday. Option expiration week is coming up and usually has a positive bias. Gold finished around unchanged after being much higher early on. The US dollar finished little changed as well and interest rates ticked up again. The markets reactions to the weak jobs report were not what's usually expected. I'm not sure what that all means. The XAU and GDX had fractional gains on good volume. Mentally I'm feeling OK. The VIX was lower today and the market didn't rally. However it was a non volatile session so that kind of fits the movement. Getting short term overbought now on the VIX but I haven't had a good handle on this indicator lately. Todays stock price action marked indecision as we wait to see the resolution at the above mentioned trend line in the S&P. The lack of volume today shows no catalyst to push higher through the line at the moment. However nobody was in a rush to sell either. We are still at an important juncture in my opinion. Should get some answers next week. Plenty of charts to check over the weekend. Asia was higher as China reopened. Europe was generally lower but not by much. It's Friday afternoon and time for a break.

Interesting is the word to descibe todays session as the Dow gained 337 points on light volume. The advance/declines were better than 2 to 1 positive. The summation index is trying to turn up. We had a gap higher at the open adn the market took off to the upside. The Dow was up around 550 points during the session. But then selling came in the final two hours. The S&P 500 had broken out to the upside from its down trend line only to end the day back at the line. So that line is still in effect but that could change with another up day tomorrow. I did purchase some SPY October puts this morning. They are showing a small profit. The stop loss order is in and it looks like tomorrow will be the key for this trade. If the down trend line remains an obstacle, the trade should work. We'll see. Gold was up a couple bucks on the futures. Interest rates rose and the US dollar finished little changed. The XAU added 1 2/3, while GDX was only up a slight fraction. Volume was about average but lighter than we've seen lately. Mentally I'm feeling OK. The VIX was lower today and closed below the 20 level. It also closed below its 200 day moving average. It seems to be saying that higher prices are coming. We'll get the employment report and market reaction tomorrow. There's a chance that the decline has ended and we'll know for sure with tomorrows price action. There's an equal chance that it hasn't concluded based on todays price action. So tomorrow will be an important day. I'm taking another chance on the downside and we'll see if that was the correct action this time around. Europe and Asia were higher overnight. We'll see how things go tomorrow.

We had a one day upside reversal as the Dow opened lower and closed higher. The most watched index gained 102 points on light volume. The advance/declines were slightly negative. The summation index continues sideways. It appears that the S&P 500 is putting in a bottom at around the 4300 level. We've held in there for about a week and the short term indicators are turning up. I am still considering though, getting some SPY puts again at the down trend line that now comes in at 4400 on the S&P. We could get there by the end of the week or perhaps tomorrow if there is any follow through upside. It's a risky trade with only seven days to go in the October option cycle. Gold was up around five bucks on the futures. The US dollar was slightly higher and interest rates finished little changed. The XAU gained two points, while GDX was up 1/2. Volume was good. Getting the GDX October calls has been missed as we have already moved higher there. The short term technical indicators for GDX have moved up as well. I'm still considering the January calls here if we move back lower as time goes on. Mentally I'm feeling OK. The VIX was lower today but remains above the 20 level. I'm not getting any decent signals from this indicator lately. Or perhaps I'm just not seeing things here clearly. Stock markets are trying to hold up here now but it remains to be seen if they'll be successful. I kind of think they will be but we'll know for sure if and when we get back to the down trend line. What happens there will tell the story. I'm still leaning towards getting the SPY puts again. We'll see. Europe and Asia were lower in last nights trade. We'll keep an eye on the overnight developments.

Another bounce back today as the Dow was up 312 points on light volume. The advance/declines were positive. The summation index is still moving sideways. We were up almost 500 points during the session but dropped off in the final hour. That has been the market make up as of late, an end of the day swoon. I think when that changes the down trend will be over. I'm still hoping to see a rise to the 440 level in the SPY this week to try the Octover puts there again. Still short term oversold for the S&P 500. The NASDAQ acted better today and that's a plus. Gold was off about ten bucks on the futures. The US dollar was a bit higher along with interest rates. The XAU and GDX had slight moves one way or the other on average volume. I'm still considering the GDX October calls ahead of the jobs report. Mentally I'm feeling OK. The VIX was lower today and remains above 20. The short term indicators here have turned down. Not getting a good feel for the VIX here but it once again seems to be saying we'll see higher prices near term. Taking it day by day here as time is running out for the October option cycle. Waiting to get back to the down trend line for the S&P. It will take another couple of days like today to get there. Even if we do there is no guarantee that the down trend line will hold. So trying to remain patient for now. Asia was generally lower and Europe higher overnight. We'll see how things go tomorrow.

The week began on a sour note for the bulls as the Dow fell 322 points on average volume. The advance/declines were around 2 to 1 negative. The summation index is trying to move lower again but remains in a sideways channel. The NASDAQ led the way lower again and as long as that's the case the trend will be down. Some negative news on FB was the backdrop. Nine days to go in the October option cycle. I'm hoping for some kind of bounce back to the down trend line in the SPY that comes in at 440 to try the puts again. But hope isn't a trading strategy. The S&P 500 remains short term oversold but we are coming to the first level of suport at 4250-4200. The NASDAQ is also coming to its first support zone of 14200 to 14000. My guess is that things hold at these areas for at least a little while and maybe longer. I'd like to try the SPY puts again if we do get back to the down trend line while still in the October option cycle. That's the idea for now. Gold was up seven bucks on the futures. The US dollar was lower and interest rates ticked up. The XAU was up about 1 1/4, while GDX gained 1/3. Volume was above average. I'm considering a short term trade now in GDX for the October cycle. Perhaps getting some GDX October calls ahead of the employment report. GDX remains both short and medium term oversold. The short term technical indicators have started to turn back up. However I may be late on this idea as today might have been the time to purchase the October calls. Mentally I'm feeling OK. The VIX was higher today and that wasn't what I expected on Friday. The short term indicators are mid-range. As long as the VIX remains above the 20 level we can expect more volatility. That's about the only thing that I can say for certain here about the VIX. Europe and Asia were lower to start the week. China remains on holiday. We'll keep an eye on the overnight developments.

A bounce back today as the Dow climbed 482 points on average volume. The advance/declines were better than 2 to 1 positive. The summation index is tracking sideways. It was a good start to the month of October for the bulls. The short term indicators for the S&P 500 are trying to turn back up. The Dow is still leading and the NASDAQ is still the laggard. That isn't the most positive scenario. Todays price action seemed more like a short squeeze than the beginning of a rally but the 4300 level has held for the S&P 500. There's now a potential short term double bottom in place there. I sold my SPY October puts for a 60% gain. The profit could have been a lot better had I dumped them earlier in the day. The entry on the trade was OK but the exit stunk even with a gain. I might try the puts again with two weeks still left in the October option cycle. Gold was up a couple bucks on the futures. Both the US dollar along with interest rates were lower. The XAU and GDX had slight fractional losses on lighter volume. GDX remains oversold and seems stuck there at this point. The fundamental factors for gold seem bearish right now. I am still looking at the January GDX calls but not with any urgency. Mentally I'm feeling frustrated as the SPY put trade was not what I had hoped it would be. I almost feel that I would have been better off just keeping it. But I did want at least some kind of profit out of it because if we see some upside follow through on Monday it probably would have returned to break even. The VIX dropped and the short term indicators turned back down which implies higher stock prices going forward. The VIX does remain above the 20 level though. The S&P does still have tops below tops and bottoms below bottoms which is the definition of a down trend. The bounce back today came right back to the neckline of the head and shoulders top. Another day higher will negate that pattern. There will be plenty to ponder over this weekend. Europe and Asia were lower to close out the week. It's Friday afternoon and time for a break.

The selling continued as we completed the month of September as the Dow fell 547 points on good volume. The advance/declines were 2 to 1 negative. The summation index is trying to move back down again. It was a one day downside reversal as we opened higher and closed lower. We also had a sharp drop in the final half hour. The Dow was the leader to the downside today. The S&P 500 is now short term oversold. However we did break the neckline of the head and shoulders formation on the daily chart. That does imply lower prices going forward. My SPY October puts are still in the black and gained some ground today. I'd like to hold this trade until the beginning of next week but I'm not exactly sure about that. The measuring objective for the head and shoulders pattern is a lot lower from here. Gold rallied as the futures gained thirty dollars. Both interest rates and the US dollar were slightly lower. Perhaps we are beginning to see a flight to safety in these assets. The XAU gained almost 2 points, while GDX was up 1/2. Volume was good again. Mentally I'm feeling OK. The VIX was up today but not as much as expected with a down 500 market. It remains above the 20 level and is not yet overbought. The short term indicators are mid-range so it appears that the market can go either way from here according to the VIX. Win or lose the trading is never easy. As much as I'd like to book the profit here, I also don't want to leave money on the table. There's still a little over two weeks to go in the October option cycle. I guess we'll see what happens tomorrow and how the week closes out. Europe was lower and Asia mixed in last nights trade. We'll close out a volatile trading week tomorrow.

It was an up session for the day with a lot of back and forth in between. The Dow gained 90 points on light volume. The advance/declines were positive. The summation index is tracking sideways after trying to turn down yesterday. The market seems to trying to make up its mind what to do here. On the plus side there was no downside follow through to yesterdays debacle. On the minus side the Dow was the leader and the NASDAQ finished in the red. The potential head and shoulders top in the S&P 500 hasn't been triggered. My SPY October puts are still in the black but did lose some ground today. I'll hold them for now. Gold dropped another ten bucks. The US dollar had a strong session, while interest rates were a touch higher. The XAU lost almost 3 points and GDX shed 1/2. Volume was good to the downside again. No love for the gold shares and GDX is even further away from the 50 day moving average. I'm looking at the January calls here but certainly not in a hurry to purchase. Mentally I'm feeling OK. The VIX was lower today. The indicators there aren't giving a good sign one way or the other right now. The VIX remains over the 20 level. We've got the end of the month tomorrow to deal with. Perhaps we'll see some new money flows on Friday the 1st. I'm trying to manage the current trade to the best of my ability. I still think that we need to get down to the 4300 level on the S&P and see what happens if we get there. But I could be wrong. Europe was higher and Asia lower last night. We'll keep an eye on the overnight developments.

Sellers showed up today as rising interest rates seemed to matter again. The Dow fell 569 points on good volume. The advance/declines were about 4 to 1 negative. The summation index is starting to move down. The NASDAQ and the S&P 500 were relatively weaker. The short term technical indicators for the S&P have turned lower. It appears that a retest of the recent lows is in progress. The question is whether or not they'll hold. I certainly don't have the answer but there is a potential head and shoulders top forming for the S&P. If the potential turns into reality the lows won't hold. My SPY October puts are shwoing a profit. Gold dropped $15 on the December contract as interest rates and the US dollar rose. The XAU and GDX had fractional losses on good volume. The gold shares did come up from the lows of the session and remain oversold. GDX is pretty far form its 50 day moving average so I would expect a move at least back towards there. Is it worth trading though? It may already be too late. I'll consider it but also try to keep my focus on the SPY trade. Mentally I'm feeling OK. The VIX spiked up and now is comfortably above the 20 level. The short term indicators here have turned up implying more selling to come. I'm not exactly sure that's going to happen. The only thing we can say for sure is that volatility has returned for now. It does appear that if the head and shoulders top pattern on the S&P is valid, we'll be heading down to 4200. Hasn't happned yet though. Asia was mixed and Europe lower overnight. We'll see what tomorrow brings.

We begin the week with a mixed bag as the Dow gained 71 points on average volume. The advance/declines were positive. The summation index is moving sideways. Both the NASDAQ and the S&P 500 were lower. The Russell 2000 was higher. So you can see that money was moving around with no real progress made in either direction. My SPY October puts are still around the break even mark. Things will need to start moving lower soon for this trade to work. The short term technical indicators for the S&P are mid-range and starting to roll over. So there is a chance that this was the right idea. Gold was flat on the session. The US dollar barely edged higher and interest rates were up slightly. The XAU and GDX finished little changed. GDX remains short term oversold. Mentally I'm feeling OK. The VIX was up today and closed above the 50 day moving average. It still remains below 20 though. The VIX is now short term oversold. If it gets back above the 20 level my SPY October put trade will probably work. Todays price action in the markets had the feel of simply hanging around waiting for the next direction. We've got some economic data due out this week but nothing of major importance in my mind. So we'll see what happens. Europe was slightly higher and Asia generally flat to start the week. We'll keep an eye on the overnight headlines.

It was a day of listless trading as the Dow gained 33 points on pretty light volume. The advance/declines were negative. The summation index is still trying to turn back up. No real news to speak of today. It's like the market took a day to catch its breath. The short term indicators for the S&P 500 are mid-range so I'm guessing things could go either way here. I did purchase soem SPY October puts today. They are at break even. The stop loss order is already in for this trade. We'll see how things go next week. Gold was up four bucks on the December futures. The US dollar was higher and interest rates ticked up as well. The XAU and GDX had fractional losses on very light volume. Light volume seemed to be the theme of the day as the market now decides where to go from here. Mentally I'm feeling OK. The VIX was lower and closed below its 50 day moving average. The short term indicators here are oversold but not completely. The VIX is implying higher stock prices for now which is why trying the SPY puts here may not be such a good idea. However I do not think that the market is going straight up to new all time highs here. I'm looking for a retest of the recent lows of Monday. We'll see. Plenty of work to do and charts to go over this weekend. We've got the end of the month on tap for next week as well. Europe was lower and Asia as well with the exception of Japan. It's Friday afternoon and time for a break.

Quite a rally today as the Dow climbed 506 points on light volume. The advance/declines were shy of 2 to 1 positive. The summation index is turning back up. The Dow was up over 600 but we faded in the last two hours. We've gone through the 50 day moving average on the S&P 500 and more than filled the gap formed on Monday. All Fibanocci retracement levels have been passed. I did place an overnight order for some SPY October puts and it was never filled even with todays huge gains. I'm leaving it out there but will reconsider this idea tonight. It appears that the decline is over but perhaps we'll get a retest of the recent lows. Or not. Plenty to ponder here at the moment. Gold lost twenty bucks on the futures despite a drop in the US dollar. Interest rates were up though. The XAU fell 2 1/2, while GDX was off almost 2/3. Volume was average. I'm back to the sidelines with regards to a GDX call trade. We've broken the 30 level there. Mentally I'm feeling OK. The VIX plummeted below the 20 level today and the 200 day moving average. It seems to be forecasting higher stock prices ahead. Not yet oversold here. I think if we close below the 50 day moving average in the VIX tomorrow we can say the decline is over for now. Perhaps I should simply be patient to try the SPY October puts later here or just forget about that trade and look elsewhere. I'll think it over tonight. Europe and Asia were higher overnight. We'll close out a wild and volatile week tomorrow.

A rally sprang up today as the Dow gained 338 points on average volume. The advance/declines were around 4 to 1 positive. The summation index is still moving lower but is once again trying to turn around. Good news came out of China as the holiday there came to a close. The Fed had no surprises. The question now is if the decline is over or just on pause. The short term indicators for the S&P 500 have turned back up but not decidedly so. I'm still favoring the SPY October puts but that could be the wrong idea. I am probably going to put in an open order for some overnight though. A move back up to the 50 day moving average at 441 or so on the SPY would be the ideal scenario. A short term down trend line comes into play a bit higher than there as well. Plus that would also fill the gap from Monday too. However if we just go up from here, the decline is likely over. Gold was off around $10 on the December futures. Interest rates were mixed, while the US dollar was higher. The XAU and GDX had slight fractional gains on better than average volume. The gold shares remain short term oversold. Mentally I'm feeling OK. The VIX dropped but remains above the 20 level and above its 200 day moving average. The short term indicators here have rolled over but are not close to being oversold again. The VIX is also showing signs that the decline could be over but nothing is set in stone just yet. It would be great to see a run to 441 on the SPY tomorrow and that would be the time to try the puts. The market rarely cooperates. Europe was higher and Asia mixed overnight. We'll see if we get some follow through buying tomorrow.

Back and forth again today as the Dow lost 50 points on average volume. The advance/declines were slightly positive. The summation index is moving lower. The NASDAQ finished in the green. Just waiting on the Fed now as yesterdays decline is in the rear view mirror. The S&P remains short term oversold. If we can snap back to the 440 level on the SPY, I may try the October puts. There is a huge gap to fill in the daily chart. However you can also make the case that the market will simply continue to stay oversold and decline from here. Reaction to what the Fed has to say will be key in the short term. Gold was up over ten bucks on the futures again today. The US dollar and interest rates finished little changed. The XAU and GDX were little changed as well and dropped from their highs of the session. Volume was average. I'm guessing things will get moving with the Fed tomorrow. Mentally I'm feeling OK. The VIX dropped today but not as much as it could have been. Remaining overbought on the short term technical indicators here. Staying well above the 20 level and volatility could be here to stay for a while. I'm hoping to get some kind of chance for the SPY October puts but we finished well off of the highs for todays session and that's not a good sign for the bulls. At this point we'll simply wait and see what happens tomorrow and go from there. Asia was mixed with some markets still on holiday. Europe was higher. We'll see what Wednesday and the Fed brings.

The market got clobbered today as the Dow fell 614 points on heavy volume. The advance/declines were better than 5 to 1 negative. The summation index is moving lower. It could have been worse as the Dow was off close to a thousand points before we got a final hour bounce. There was a huge gap down at the open and things just got worse from there. We are short term oversold on the S&P and staying that way. That is never a good sign. The excuse for todays decline is a Chinese real estate company about to go under. But we'll stick with the technicals as always. I've got support for the S&P 500 at 4200 and if that doesn't hold 4000. So I think we've still got plenty of downside work to do. There's also an outside chance crash possibility as the summation index is heading down to the zero line. I still favor the SPY October puts but let's see some kind of bounce to try those. Gold was up over ten bucks on the futures in a flight to safety. The US dollar finished little changed, while interest rates dropped. The XAU fell 1 1/3 and GDX shed 1/8. Volume was good. I'm back to looking at the gold shares here on the safety and fear factor that we now see in the marketplace. I did look at the GDX October calls but the premiums were pretty pricey. I'll consider this idea again tomorrow. GDX is both short and medium term oversold. Mentally I'm feeling OK. The VIX jumped today and would have closed even higher had we not gotten the final hour push up. It is overbought on the short term indicators so a drop in the VIX would not be a surprise. However it's well above the 20 level and that implies more volatility to come as long as things stay that way. The 200 day moving average is also at 20. The ideal scenario would be a move back to 20 in order to purchase the SPY October calls and then we'd go from there. The market rarely cooperates with your best laid plans. We've still got the Fed to deal with on Wednesday but that may take a back seat to the China woes. The fact that the market over there is closed again tomorrow adds to the uncertainty of what is about to happen. Interesting times. Europe and Asia sold off hard too. We'll keep an eye on tonights developments.

Down we went on expiring options Friday as the Dow fell 166 points on expiration heavy volume. The advance/declines were around 2 to 1 negative. The summation index is trying to move lower. My SPY September calls got crushed for a 90% loss. Bad entry, poor management and then got greedy when I had a chance to break even. That's the textbook way not to trade. I didn't use a stop loss order this time around since the price movement is rather volatile during expiration week. The rationale there is that you don't want to be stopped out when the trade has a chance to work. Like all trades win or lose, this one has to be forgotten and you've got to move on. I still favor the SPY October puts going forward but will have to see another bounce in order to purchase. Perhaps some time next week. Make no mistake, the trend is down for stocks. The NASDAQ and the S&P 500 did worse than the Dow today. The S&P does remain short term oversold here. Gold finished flat on the day. The US dollar continued higher as did US interest rates. The XAU was off 1 1/4, while GDX lost 1/3. Volume was better than average. Looking at the GDX January calls now but in no rush to purchase. The fundamentals for gold here are not positive in my opinion. Mentally I'm feeling OK despite the huge loss in the SPY trade this week. The VIX spiked up today and closed above the 200 day moving average and the inportant level of 20. The short term indicators also remain overbought. To me this spells trouble going forward for equity prices. If the VIX stays above 20, the decline could get severe. Hasn't happened yet but it is something to definately keep an eye on. Here is another thing to keep in mind. The bounce we got on Wednesday came out of nowhere and had zero follow through. That is a classic sign of a downward trending market. Rallies can be continued to be sold until that changes. We will have to wait for everyone to turn bearish before the market begins to move up again. Asia was higher and Europe lower to close out the week. Plenty of work to do over the weekend to prepare for next week. We'll have the Fed to deal with on Wednesday. It's Friday afternoon and time for a break.

Another day of back and forth as the Dow fell 63 points on light volume. The advance/declines were slightly negative. The summation index continues sideways. We had an early sell off as the Dow was down over 250 points. The market managed to make its way back and the NASDAQ finished with a slight gain. My SPY September calls didn't fare as well, they are now solid losers that should have been sold on the close yesterday. Only one day left to go here and it will take a rally of a couple hundred points to bring these back now. It looks like the SPY will not finish above the 450 level and the market makers will rejoice. Gold got hammered today as the futures fell forty bucks. The US dollar was higher along with interest rates. The XAU lost 6 1/3, while GDX shed 1 1/3. Volume was heavy to the downside. I am no longer considering the GDX October calls. I'll consider the January calls here if we break below the 30 level for GDX. Mentally I'm feeling OK. The VIX was up today and that makes sense considering how much prices moved around. Not sure what the techncial indicators on the VIX are pointing to now. They are mid-range. Also not sure what to expect with option expiration on tap for tomorrow. Higher prices will cut my loss in the SPY call trade while lower prices will most likely wipe it out. The entry timing on this trade was off and then I got greedy after yesterdays rise. Greed kills. Europe was slightly higher and Asia generally lower overnight. We'll close out the expiration trading week tomorrow.

Today we got the bounce as the Dow gained 236 points on light volume. The advance/declines were better than 2 to 1 positive. The summation index is back to tracking sideways. The SPY September calls that I have made it all the way back to break even so I'll hold them until the retail sales report tomorrow morning. If we get some follow through buying they might actually turn a small profit. Plenty of risk with just a couple of days to go though. No news to account for todays gains, just the technical nature of the market in my opinion. We'll see what happens tomorrow. Gold dropped over ten bucks on the futures. Interest rates ticked up and the US dollar was lower. The XAU and GDX had slight fractional gains again despite the drop in gold itself. That's usually a positive. Volume was very light so I don't know how much you can read in to the price action. Mentally I'm feeling OK. The VIX was lower today and the short term indicators pointing down here still imply higher stock prices going forward. My guess is that the SPY option market makers would like the index to finish around 450 on the week for the best possible outcome for them. That's how the volume stacks up there right now. I don't think that we'll get above 450 by the close on Friday. Again, that's a guess on my part. We'll focus on what happens at the open tomorrow and hopefully I can get out of the current trade unscathed. Europe and Asia were both lower in last nights trade. We'll keep an eye on the overnight developments.

Continuing lower as the Dow dropped 292 points on light volume. The advance/declines were better than 2 to 1 negative. The summation index is strying to turn down. No buyers in sight as any attempt at a rally is being met with selling. Short term oversold and now medium term as well. I did purchase some SPY September calls this morning and they are of course losers as the market keeps going down. This trade is already in the cut the loss situation. When the normal technical patterns don't work, you know that we're in for something different. I'll be getting out of this trade most likely tomorrow and keeping an eye on the SPY October puts. Gold was up a few bucks on the weak inflation data. The US dollar finished little changed and interest rates dropped. The XAU and GDX had slight fractional gains on light volume. I'm still considering the GDX October calls. Mentally I'm feeling OK. The VIX bounced around today and finished about hwere it started. It still closed below its 200 day moving average. Overbought in the short term here for the VIX and that would imply that we should see some stock gains. However that is what it implied on the close yesterday as well. Overdue for some kind of sustained bounce in stocks for at least a session but it doesn't appear to be happening. A lot of the daily index charts are looking pretty negative as well. Three days left in the September option cycle. Retail sales data on Thursday could be a market mover. Europe and Asia were mixed overnight. We'll see what tomorrow brings.

It was a back and forth session to begin the week as an early bounce faded and then came back. The Dow gained 261 points on light volume. The advance/declines were positive. The summation index is moving sideways. The Dow was the overall leader today as the S&P wasn't as strong and the NASDAQ finished in the red. The market opened very strong and then gave it all back only to rise again in the final hour. An interesting session to say the least. I placed a few orders for the SPY September calls, changing my mind several times. None of them were filled. I might try again tomorrow if there is weakness on the open but I've probably missed this trade. The market action is anything but positive and we may have seen the bounce I was looking for already today. The SPY October puts are now on my radar. Gold was up a couple bucks on the futures. The US dollar finished slightly higher and interest rates slightly lower. The XAU was up 1 3/4, while GDX rose almost 2/3. Volume was good. The short term indicators for GDX are starting to turn back up. Perhaps the October calls here should be taken a look at again. Mentally I'm feeling a bit tired. I'm also not sure whether I want to risk putting on a trade with only 4 days left in the September option cycle. The VIX bounced around as well and finally closed lower on the session. It's back below the 200 day moving average. Some of its short term indicators have rolled over. It seems to be implying that higher stock prices are in the cards for the near term. If so I've lost my chance for the SPY call trade which had a pretty good set up. But the short term trades are not my best efforts usually. We'll see how things go tomorrow. Europe was higher and Asia mixed overnight. We'll see how the market reacts to the inflation data due out tomorrow.

We had a one day reversal to the downside today as the market opened higher and closed lower. The Dow fell 271 points on light volume. The advance/declines were about 2 to 1 negative. The summation index is trying to move lower. Down every day this week and 5 days in a row for the Dow. Any weakness on Monday can be bought for a bounce trade and that's what I'll be looking to do. I did place a late order for the SPY September calls but it wasn't filled. If we get some selling on Monday morning, I'll be purchasing the calls. Once the bounce is complete next week I'll be looking to trade the SPY puts. Rallies are being sold now as the market has changed from buying the dips. We are already short term oversold in the Dow. Buying the SPY calls on Monday and selling them on Tuesday is not out of the question. If the market simply takes off to the upside Monday morning we'll count this as another missed idea. Gold was off a few bucks on the futures. Interest rates rose and the US dollar had a slight gain. The XAU fell 1 3/4, while GDX shed 1/2. Volume was light. Getting to short term oversold for GDX but not quite there yet. But I am keeping in mind that if the market takes a dramatic fall in the coming weeks it will probably take the gold shares with it. Mentally I'm feeling OK. The VIX spiked above the 20 level today and closed above its 200 day moving average. In recent months when the VIX has gotten above the 200 day it has quickly moved back down below it. I'm counting on that occurring again now for the SPY bounce trade. Another one of my reliable S&P 500 technical indicators is also signaling a short term buy. It will be risky with only a week to go in the September option cycle. Not to mention that the trend has turned to downward for stocks. That said, I would certainly like to give it a go on Monday. I'll be checking the charts this weekend to double check my work. Asia was higher and Europe lower overnight. It's Friday afternoon and time for a rest.

Still heading lower as the Dow fell 151 points on light volume. The advance/declines were just about even though. The summation index is tracking sideways. Any buying is being met with selling as the tone of the market has changed. Today the market was higher early on only to close on the lows of the day. The short term technical indicators for the S&P 500 have rolled over. If we get a bounce in stocks the next couple of sessions, I'd be willing to try the SPY September puts on Tuesday of next week. If we head lower tomorrow, I'd be willing to try the SPY September calls on weakness Monday. That is how I'm thinking thngs will shape up here in the very short term. Looking further out there, I'm considering the SPY October puts when more of the time premium in them expires. The price action in the S&P has been sloppy lately. However the NASDAQ has held up rather well and I don't see any huge moves lower unless we start to see more weakness there. Gold was up five bucks. The US dollar was slightly lower and interest rates dropped. The XAU fell 1 1/4, while GDX lost 1/4. Volume was average. Still waiting for GDX to get oversold, not there yet. Mentally I'm feeling OK. The VIX was higher today and the indicators here have now turned up. The VIX now appears to be saying that move selling is to come. I don't disagree with that but the timing is key. Could things fall apart tomorrow, yes there is that possibility. I guess at this stage I'm hoping that they don't because I'd like to get on board and profit from a drop. Perhaps early this morning was the opportunity that I was looking for but we'll only know that after the fact. So we'll see how things go tomorrow. Europe and Asia were mixed. We'll close out the short trading week tomorrow.

Another downer as the Dow fell 69 points on light volume. The advance/declines were negative. The summation index is moving sideways. Short term oversold on the Dow but not the rest of the major indices. The NASDAQ led the way lower today and that is not a plus. I'd still like to try the September SPY puts but it may have to wait until next week. The decline that we've seen in the past few days certainly hasn't been robust. It may be setting up for a return to new all time highs before expiration. That's just a guess on my part. Inflation data on Friday could be a key. Gold was off about five bucks on the futures. The US dollar was slightly higher and interest rates were a bit lower. The XAU and GDX had fractional losses on light volume. Still waiting on GDX to get back to short term oversold. Mentally I'm feeling OK. The VIX closed lower after spiking up early. That doesn't fit with a down day in the market but perhaps it's signaling a return to the rally for stocks. Still short term oversold here though. Running out of time for the September option cycle but I don't want to force things here. I also don't usually do too well with the short term ideas. So we'll see. The market was down today and SPY puts still lost value as time premium is getting sucked out. That's a tough game to play. I guess we'll see what happens tomorrow and go from there. Europe and Asia were lower but Japan bucked the trend. We'll keep an eye on the overnight developments.

The Dow took a hit today as the most watched index fell 269 points on light volume. The advance/declines were around 2 to 1 negative. The summation index is beginning to move sideways. The overall market did much better than the Dow, with the NASDAQ posting a small gain. Another new all time high there. I'm still interested in the SPY September puts but would need to see some upside before a purchase. It might be too late. Not a lot of economic data out this week but we do get inflation numbers on Friday. Running out of time in the September option cycle. Timing will have to spot on for an option trade to be successful. Gold dropped almost thirty bucks on the futures as the US dollar was higher and so were interest rates. The XAU fell 3 3/4, while GDX shed 7/8. Volume was average. Might try the GDX October calls if and when GDX gets short term oversold again. Mentally I'm feeling OK. The VIX spiked up and closed above its 50 day moving average. The short term indicators here remain oversold. Todays move in the VIX could simply be a one day wonder but I'll be watching what happens from here. The October SPY puts have too much time premium built in them now to make a trade there. I really do think that the rally in stocks that began when the coronavirus started needs to take a break. We are in a seasonal time period to allow that to happen. Whether or not it does, we'll know in the coming weeks. Europe was lower and Asia higher last night. We'll see how things go tomorrow.

It was a mixed session after a weaker than expected jobs report as the Dow fell 74 points on pretty light volume. The advance/declines were negative. The summation index is still moving up. The NASDAQ posted a gain and the S&P 500 was only slightly lower. The S&P remains short term overbought and I'm still interested in the SPY September puts if we get some strength early next week. The Fed easy money policy won't be changed after todays weak numbers and that provides a floor for stocks at the moment. Eventually that will change. Gold rallied on the weaker employment report as the futures gained twenty bucks. The US dollar was lower but interest rates ticked up. The XAU rose 3 1/4, while GDX added 3/4. Volume was good as it has been on the way up. The gold share calls remain overbought but if they do get back to oversold, I'll try the GDX October calls. The volume on the rise here says that this should be a longer lasting move higher for the gold shares. However I am not going to chase it here but that may not be the correct choice. Nonetheless to me the better course of action is to wait for an oversold condition and try the calls then. If the gold shares simply continue higher and remain overbought then so be it. The ideal entry point has already been missed. Mentally I'm feeling OK. The VIX was flat today and remains oversold. Todays light volume was no surprise given the last holiday weekend of summer. Things should get back to normal on Tuesday. There's not much left to do now except go over the charts on a long weekend. Asia was mixed and Europe lower to finish out the week. It's Friday afternoon and time for a break.

Higher today for the Dow as it rose 131 points on light volume. The advance/declines were positive. The summation index continues higher. New highs for the NASDAQ and the S&P 500. Both remain short term overbought. No open orders out there for me for now. I'm going to let the employment data play out as it will and look to get some SPY September puts next week. That's teh game plan for now. Gold finished little changed again as it decides which way to go. The US dollar was weaker and interest rates were little changed. The XAU and GDX had slight fractional gains on light volume. Most likely tomorrows jobs report will provide the excuse for whichever way gold goes from here. Could go either way in my view. Mentally I'm feeling OK. The VIX was slightly higher today which doesn't fit an up market. Not sure what that means but as long as it stays below the 50 day moving average it should be constructive for stocks. We'll see how the market reacts to the jobs report and take it from there. I'm pretty sure that I'll be waiting until next week to put on the next trade. All the players should be back at their desks by then. There will only be nine days left in the September option cycle on Tuesday as the Labor day holiday weekend is upon us. I suspect traders will be leaving early tomorrow. Europe and Asia were generally higher in last nights trade. We'll close out the week and the unofficial end of summer trading tomorrow.

We had a downside reversal day for the Dow as it opened higher and closed lower. It fell 48 points on average volume. The advance/declines were positive. The summation index continues higher. The S&P 500 along with the NASDAQ were positive. The NASDAQ closed at a new all time high. As long as the small stocks lead the way, the trend remains up. I canceled my open order for the SPY September puts. I still like this idea but the timing must be correct. At this point I'm probably going to wait until early next week to try again. But we'll see. Still short term overbought for the S&P although it did drop in the final two hours today. Gold finished flat on the session. Both interest rates and the US dollar were slightly lower. The XAU fell 1 3/8, while GDX shed almost 1/4. Volume was light. Still short term overbought on the gold shares. Mentally I'm feeling OK. The VIX was lower today and remains oversold. Not getting any feel for where the VIX is going from here. I think at this point waiting for the jobs report on Friday and the market reaction to it is the prudent course to take. If the market conitnues higher here, I'll consider the SPY September puts after Labor day. That's my best guess at the moment. We did not see as much money flow into stocks today as I expected since we had a late sell off. Europe and Asia were generally higher overnight. We'll see how it goes tomorrow.