The Dow was basically unchanged today, up a little over a point. Volume was nothing special and the advance/declines were positive. No economic news today and it is option expiration week. Gold was up a couple bucks with the XAU, NEM and ABX all showing small gains on lighter than average volume. The options I previously owned did nothing. Now for a losing recap. The ABX calls were a 75% loss and the NEM calls were a 62% loss. Ouch! I might go for some October calls if prices are right and a signal develops, which I think could happen. But who knows. The Bollinger bands are converging implying a big move is at hand. Which way it goes is another question. However other technical indicators are oversold so I am believing a move to the upside is imminent. With the OEX this week I hopefully will stay out of the picture. It's getting more overbought but it has been overbought for a while. Not much else to say. Moving on from losses as best I can. Trying to stay focused and look for the next opportunity. Not beating myself up for the latest debacle. Should use stop loss orders but that makes a little too much sense now, doesn't it?

The Dow was up 24 points today on light volume again. Advance/declines were positive. I still think this market wants to work higher. But that is not the story today. I took my lumps in gold today, closing out all my positions with major losses. At least 50% on each trade. Gold was up over $3 today and the XAU, NEM and ABX rallied early. As the day went on however the rally stalled. It wasn't a convincing move in my opinion and I noticed the volume was low. I hung on as long as I could but when things started to fade in the final hour I decided to just get out. The dollar was weak again and if that can't get a good rally going, nothing will. With only a week left I could not hold these any longer. Now next week could be great for gold but maybe not and I had already lost too much as it was. This trade along with the early GE blowout this year have really did me in. It seems whenever I take a larger than normal position it always backfires on me. Make a note of that. GE was up a little today and that was a trade that would have worked. I still might look at gold for October but am uncertain at this point. I'll check things over the weekend and take it from there I suppose. Losses are inevitable in the game however I must learn to limit them if I am ever going to make this work on a consistent basis. Am I getting closer to the mission? I sure hope so. But trades like these are steps backwards. Patience is something I just have got to get a hold of. Discipline is another.

It seems like a market that wants to go higher. The Dow was down 25 points but advance/declines were positive and the volume picked up. GE continues to gain ground. The SPX and the OEX were both higher also. Gold lost a dollar and the XAU, NEM and ABX were fractionally higher. The options are still losers. It would take a miracle at this point just to break even. The dollar was higher today. The trade number tomorrow will be the key between a small loss or a big one for these gold trades. They are already predicting a huge deficit, so if it comes in less than that it could be viewed as a positive when in reality it really isn't. Doesn't matter now, my timing was off and losses are the result. Gotta get out and move on unless gold rallies big tomorrow. Not much else to say at this point...

The Dow was off around 30 points on light volume again. Advance/declines were negative. There is a non conformation of yesterdays high on the McClellan oscillator. Would like to short strength tomorrow but I 'm all tied up in gold. Gold was up a couple bucks today but the XAU, NEM and ABX were all down on good volume. Not a good sign for the long side. The calls are all losing money and I am running out of time. These trades will be losers. That's the reality of it at this point. I'll still wait for friday but I don't think it will matter. My prognosis was simply wrong and when that happens, you'll lose money. The dollar was weaker today also and the gold stocks could not rally. So this is real trouble at this juncture. I'll have to try to cut the loss as best I can but it isn't looking good. Volume expanding on the downside and I am screwed. Oh well, back to the drawing board I guess. GE is still going higher and the calls there would have worked well at this point. But what can ya do? I'm stuck in gold and it's a loser...

20 minutes to go. The Dow is up around 60 points. Advance/declines are over 2 to 1 positive. The volume is light again. The convention is over, summer is over, there are no more excuses for light volume. We have touched the longer term downtrend line at 546 on the OEX. This is the moment of truth for the market. If we get through here, a longer rally will take place. I'd like to get short here but I am already committed to the gold trade. My NEM GTC order was filled this morning as gold was down again today, this time over 3 bucks. The XAU is holding up rather well, off a little over a point. NEM and ABX are both down but not much. However premium is being sucked out of the options and each show a loss. I will still wait for fridays trade number as that was the original plan. But it isn't looking good today. I still think this will work. Perhaps some OEX puts are in the plan, it depends on the market action in the next two days. Greenspan will speak tomorrow and that is usually a market mover. That's it for today, I must end early due to other commitments...

Well the employment number came and went. It was in line with expectations. The Dow ended up down 30 points on extremely light volume. Advance/declines were negative. Hopefully the volume will pick up next week. Gold got hammered, off over $5. The dollar rallied. The XAU was off a point and a half. NEM lost around 80 cents and ABX lost about 20 cents, both on light volume. The gold stocks held up better than I expected, considering the move in gold. I put in an order for some NEM September 45 calls, GTC. Perhaps it will get filled with some weakness on tuesday. My ABX calls are now at a loss. I am still believing that the gold stocks will rally before the expiration as they have for the past several months. The merchandise trade report will be out next week and that will be the key for gold in the near term I believe. There are 2 weeks to go in the options and that should be enough time for a rally and profitable positions. I could be wrong as I have been in the past. But my thinking is that this scenario will pan out. GE was down today, I'll have to check the charts on that one. I will short the OEX when it gets to the downtrend line at about 546. Ideally there will be a divergence in the McClellan oscillator when this occurs. It's a long Labor Day beginning. I'll check everything over the weekend and return to the trades on tuesday.

Finally some movement today as the Dow gained over 120 points. Advance/declines were almost 3 to 1 positive. The volume was light again and that has been the problem with this recent rise in the market. I don't know if it's believable. We are right at some multiweek downtrend lines in all the major indices. But we are approaching them on weak volume. I would like to get short when we get there which could be tomorrow. Employment report tomorrow. That will be key. There was talk today that the number is already known and that is why we had such a good rally today. Who knows? We'll see tomorrow. Gold was down $4. The XAU was down less than a point. ABX and NEM were off slightly. Considering the drop in gold the stocks held up rather well. Again, how the dollar reacts to tomorrows news will be key. GE was up today but not a lot and the volume was light. Important report tomorrow and then a long holiday weekend. Things could get interesting...

Hang around day in the markets and this site is having technical difficulties. More tomorrow.

Dow up 50 points today on a little more volume then late but nothing heavy. Advance/declines almost 2 to 1 positive. The market was weaker most of the day and started to turn around in the last couple of hours. Economic news was weak. Gold was up a little which was encouraging. The XAU was almost up 2 points while NEM and ABX each gained over 50 cents. Volume was light though so I don't read much into it. My ABX calls are showing a profit again. The US dollar was weak and if that keeps up, the calls should work. Looked at GE when it was weaker this morning but did not purchase any calls. Hard to trade the overall market with such light volume but who knows? Something may happen tradewise there this week. Just gonna have to wait for fridays employment data and take it from there I suppose.

Dow down 72 points on extremely light volume. Advance/declines negative. Could be a very slow week, volumewise. Gold was up over 3 bucks. But the XAU, NEM and ABX were all down and fell hard into the close. That is not a good sign. My ABX calls are now losers and if the action going forward is anything like today, they are toast. There are a little less than 3 weeks remaining. I'll hold them here and wait for the employment report on friday. Not a lot of news and not much market interest due to the Republican convention. I suppose in hindsight I should have just let this week pass.

Dow up 20 points with advance/declines over 2 to 1 positive. However as has been the case lately the volume was pathetically weak. Even lighter than it has been. Which, for me, calls this whole rally into question. We are at resistance on the Dow at 10200. I don't see a lot of upside from here without some kind of pullback. Gold was down over $4, to the 402-403 area which is support. It must hold around this level or lower prices are in order. Even with gold down the XAU was up a point. That is bullish in my opinion for the gold shares. ABX was up 30 cents on decent volume but NEM was up a few cents on light volume. I am still holding on to the higher gold price scenario. Perhaps this week was the pullback to the downtrend line we broke through last week. We'll find out with next weeks action. Predictions are for a slow market with not much participation due to the Republican convention in New York. Time will tell. There is the employment report on friday. I'm still thinking about a trade in GE down the road here and I'd like to pick up some NEM calls also. Summer is winding down and things should get more interesting in the weeks ahead.

The site is having difficulties today. I'll make it brief. Dow barely moved, down 8 today. Volume extremely light. Gold was off a dollar, the XAU down around a half, both NEM and ABX down some. Light volume with the exception of ABX. The volume there was better than average and to the downside. I'm not liking that. The calls I own are right where I purchased them. If we keep the lackluster action of late up, the time premium will erode and this will be a losing position. Until tomorrow...

The market moved higher today, the Dow up 83 points. Advance/declines were over 2 to 1 positive. The volume picked up a little but is still very light. Gold moved up 5 dollars. The XAU was up 2 1/2 points, NEM up over a dollar and ABX tacked on 40 cents. Volume wasn't all that strong though. I think we'll move sideways here for a while and then hopefully resume the uptrend. The ABX calls I bought yesterday are showing a small profit. GE was up a small amount and I am looking to buy some calls but GE isn't really following the overall uptrend here. That makes me wary of this move, plus the fact that the volume is light. Sidelines for now. These seem like the dog days of trading. No volume, not a lot of news, traders on vacation. But you've got to pay attention and you've got to stick with it. You've got to stay motivated and you cannot forget your mission. Timing, focus and desire have to stay true. It will pay off in the long run.

Another nothing day in the stock market. The Dow was up 27 points on light volume. Slightly positive advance/declines. I can't say that there is anything to move the market at this point. I now own some ABX September calls. My order got filled during the morning, unfortunately I now believe I am way early in purchasing these. The indicators aren't fully oversold. It looks like that there could be an inverted head and shoulders pattern on the US dollar here also, daily basis. I probably should have canceled the order earlier. I still think the trade will work but the entry may have been able to be done at a better level. We shall see. Gold itself got hammered today, down over 7 dollars. However the XAU was only off a couple points while NEM lost around 80 cents and ABX dropped about a quarter. Volume did pick up to the downside though, not a good sign. However with gold down so much these issues should have been clobbered, yet they hung in there pretty good. I'm still of the belief that this is a snapback to the downtrend line that was broken. Trading is never easy. End of summer here and there seems to be no interest in the markets. The Republican convention is in New York next week and there is talk of even lighter volume then due to the logistics. Things should pick up after Labor Day. Perhaps I should have had the patience to wait. There are always other trades though...

The Dow was down 37 points on extremely light volume. Advance/declines were negative. A slight pullback here should be expected. I'm still getting a buy signal from the put/call ratio though. As for the 10-day trin, it's overbought. Mixed signals for sure but I think we will work higher in the coming weeks. I'm looking at GE calls as a proxy for the market. Gold was down 2 1/2 today. The XAU was off a couple points. NEM and ABX were both down but not a lot. Volume here was light also on the pullback. I have an order in for some ABX calls. I think gold is going higher. It broke through the recent downtrend line on increased volume. The next expectation is a snapback to the line broken. I believe that is what is happening now. I will be looking to get some NEM calls also. If any trade is going to work, long gold at this point should. There are no guarantees but this set-up seems to be going the way it should for now. I don't want to get too overconfident but I believe this one is legit. We shall see. Beginning of a new option cycle so there is no rush but I don't want to be left behind again either. The overall market, the OEX and GE is a tougher call. Time will tell. Not much data this week. 2 weeks until Labor day. Might be quiet until then, with the employment report due out the friday before.

Dow up another 70 points. Advance/declines almost 3 to 1 positive. The only thing missing was volume, which wasn't anything great. There was volume in gold though as this market has taken off. Without me I might add. The XAU was up 1.80, NEM up 44 cents and gold itself gained over 6 dollars. I will get long on any pullback and I am expecting one because the technicals on a daily basis are blown out to the upside. But again, you never know. It could just go straight up. I'm hoping it doesn't. But with the volume this strong there is no doubt that the move in gold is for real and has legs. I'll look to purchase September and October calls. As for the overall market I'm not as sure. I'm still leaning upside but with not as much conviction until I see some volume. I do still like the strong beginning of September and a weak second half of that month. But it's a guess. Options have expired for August and it's time to move on.

The Dow was down a little over 40 points today. Advance/declines were negative but not bad. Volume was below average again. Oil shot up around a buck fifty. The Leading Indicators were negative for the second month in a row. Gold was up around 2 1/2 but the gold stocks took off. The XAU had its best day in weeks up over 3 points. NEM was up a buck eighty. Volume on all the gold issues was heavy. It is for real, I believe. The NEM options that I sold for a loss a couple weeks ago would have quintupled if I had held on to them. I can only hope that we get a snapback to the downtrend lines that have been broken on most issues. Short-term the gold stocks are overbought but longer term they are not. I am thinking of going out to the October calls on some issues. But I really need to see some pullback. That may not happen. Yes, I'm disappointed but at the same time I do not want to get too discouraged because this could be the start of a multi-week up move. The stock market looks like it wants to go higher also. Some of my indicators point to this. Perhaps the beginning of September will be strong and the second half of the month weak as I have seen in the past. I will look to buy some GE calls for september as a proxy for the overall market. Perhaps some OEX calls if my timing can get untracked. It is painful to be on the sidelines but what can I say? I'll look towards the future and try to do a better job...

Dow up 110 points. Advance/declines more than 3 to 1 positive. Volume nothing special but you can't argue with the price action. Gold was flat but the XAU and NEM were both up again although not a lot. The expiration rise for gold stocks continues this month yet again. Oil was up but it didn't affect the stock market today. The next question will be, is the rally for real or just a bounce? It's had everything but volume so far. It is important to find the answer to this question because it will affect the trading going forward. It appears that we are about to break a weekly downtrend line on the OEX here. Other technicals point to a bottom here. I'll be leaning bullish unless something changes that view. No trades with 2 days before expiration. Looking out to September and October.

Dow up 18 points, volume light. Advance/declines positive. Market was up higher earlier. Lots of data to digest. No inflation on the consumer level and strong numbers housing and manufacturing wise. McClellan oscillator has turned positive. I think as far as the OEX is concerned right now, the risks outweigh the rewards. Gold was up a buck fifty. The XAU opened lower came back and was up a tad at the close. NEM was down a few cents. Although overbought, this market seems like it wants to go higher as it has into the expiration the last 3 months. I will have to wait it out. Could be missing the next upleg there though. Can't chase it here. It won't be easy but the sidelines are probably the best place for me at the moment. Will fight myself not to buy some puts before the leading indicators on thursday. Not much else for today.

I put in an order sunday night for some OEX calls. It did not get filled. The Dow was up about 130 points today. Advance/declines were around 3 to 1 positive. Volume was monday light. Gold was up another $4. NEM was up over a dollar and the XAU was up almost 2 points and closed on the high. It broke through the downtrend line. And I am left sitting here with no positions in anything. It isn't an enviable position to be in. 4 days until option expiration and the risk factor only goes up from here. I suppose I will have to wait for the XAU to fall back to the line it just broke. There is no guarantee that that will happen. There is a possible short play in the OEX before thursdays report on the leading economic indicators. But I don't know if it's worth the risk. Or if I can time it properly, or if it will even happen. And so it goes. I don't know what to say. It is just a very, very tough game. You have to somehow move on from losses and missed opportunities as best you can. It's difficult for me. The trades are out there. But you've got to really be in tune. You have got to be ahead of the game. I think it can be done if you pay attention and outwork the crowd. But who has that kind of commitment? Winners, that's who. This game isn't for the lazy. It's a pro's game. If you don't approach it as such don't even think you'll be successful. Because you won't. I now have to patiently wait for another opportunity to present itself. It won't be easy...