We are right at the point of ending the months long rally as the Dow fell 128 points on light volume.  The advance/declines were negative.  The S&P 500 is sitting on the uptrend line that began in June.  The summation index continues lower.  On the plus side, we haven't broken down yet.  We are also short term oversold.  Plus the advance/declines for today were not as bad as a down 128 point market.  The overall market was stronger than the Dow as well.  But we are at a point in time where things might change and we have to be aware of that.  GE was off 1/4 on light volume.  It looks like we are rolling over here and that would not be bullish for the overall stock indices.  Gold was flat on the day as was the US dollar.  Waiting on a meeting in Europe tomorrow is my guess.  The XAU gained 1 1/3.  ABX, GG and NEM were mixed with slight moves one way or the other on light volume.  I left in the open order for the November ABX calls after adjusting the price lower.  I am also looking at going out to the January calls here.  ABX is trying to hold the $40 level and a break of that should take us to the 50 day moving average at the $38.5 level.  That may actually be the spot to get long.  All just theory there.  I remain a longer term believer in higher prices for gold and the gold shares.  Mentally I'm feeling a bit tired, did not sleep well.  Just as today was important, tomorrow is even more so.  We probably should bounce but after that it could get dicey.  What I'm saying is that being careful here would not be a bad idea.  That said, the decline could also be done and now we rally to new yearly highs.  Take your pick but I think we'll know pretty soon what is going to happen.  Gold is still holding up pretty good for now as the US dollar is at an important juncture as well.  Any strength in the dollar will break through a down trend line that has been in effect since late July.  It is something to keep an eye on with respect to gold and the stock indexes as well.  We'll see what tomorrow brings.

Weakness today as the Dow fell 110 points on light volume.  The advance/declines were 3 to 1 negative.  The summation index will be back to heading lower.  We closed almost on the low of the day for the S&P 500 and that isn't exactly bullish.  A decline in the early part of this week was expected.  The uptrend line from June comes in at around 1435.  We need to hold on there or the game will be changed.  Haven't broken it yet but beware if we do.  1435 would be a logical spot to get some calls if you were so inclined.  I've had a bullish stance on the overall market for a while but the technicals have rolled over.  I'm on the sidelines with regards to the OEX as the time to buy the puts there has probably already passed.  GE fell 1/3 on average volume.  The same story here as the technicals are heading south.  No trades here for me now.  Gold fell $10 on the futures as the US dollar had a good day.  The XAU dropped 4 points.  We've got the technical rollover here as well.  ABX off 7/8, GG fell 1 1/2 and NEM down 1 1/4.  Volume remained light.  I adjusted down the strike price for the November ABX call order.  I will have to ponder this trade tonight because if the overall market starts to fall here, the gold shares will most likely follow suit.  Mentally I'm feeling OK.  Important session tomorrow for the stock indices in my opinion.  We're not overbought or oversold at this juncture, so anything is possible.  I'd like to see the rally continue but that doesn't mean that it will.  So we'll see what happens.  I'm still a believer for higher gold prices in the future.  However this market can get moving pretty fast one way or the other at times.  If we break down from these levels it could get ugly pretty fast.  Again, hasn't happened yet and I'm still ready to try the gold share calls here.  Perhaps going further out to January is a possible trade.  I'll consider that tonight as well.  We'll watch how the foreign markets react to todays US stock index action and go from there.  

It was a semi-holiday today as the bond market was closed for Columbus Day.  The Dow fell 26 points on extremely light volume.  The advance/declines were negative.  I expect a bit of weakness in the early part of this week.  After that, who knows?  Not a lot of economic data out this week.  The trend is still up.  GE fell almost 1/4 on the same very light volume.  We're still overbought on GE, so there is room to head lower near term.  That doesn't mean that will happen but the technicals won't remain overbought forever.  Gold lost $5 on the futures as the US dollar was a bit higher.  The XAU fell 1 1/2.  ABX, GG and NEM all had fractional losses on the very light volume.  Still moving sideways here.  I did place an open order for some ABX November calls.  This will be my next trade if it gets filled.  This is the idea for now but that could change going forward.  Mentally I'm feeling OK.  I'm still a believer in new yearly highs for the S&P 500 going forward.  We've been moving sideways for 3 weeks.  No uptrend lines have been broken.  Earnings season is upon us.  Gold is moving sideways as well.  If and when we get through 1800 should signal the next up leg.  Patience is required for now.

A mixed market once again as the Dow gained 35 points while the overall stock indices were weaker.  The advance/declines were positive and the volume was light.  We rallied on a better employment percentage number early in the day and then sold off for the remainder of the session.  There was a huge drop in the rate of unemployment but by now we all know that these numbers are byproducts of government.  The group in power would like to remain so and an election is imminent.  As traders we only care how things affect the market, regardless of the party in the White House.  The fact that the rally could not sustain itself could be a negative in the short term.  The summation index was higher yesterday but not by much.  The stock indexes are approaching short term overbought.  GE was up 1/8 on light volume.  GE is saying that the rally here still has legs.  I can't argue with that yet.  Gold fell $15 on the futures and the US dollar closed the day about unchanged.  The XAU dropped 2 points.  ABX and NEM had slight fractional losses, while GG was unchanged.  Volume was very light.  I'll be looking at the gold shares closely over the weekend to try and come up with some type of game plan for next week and beyond.  I'm still a believer in higher prices for the precious metal shares.  Mentally I'm feeling OK.  Todays market action does not look positive going forward in the short term.  We could not hold the early gains.  Of course that could all change on Monday but I really don't think that it will.  I could be wrong.  I'll be checking the charts closely over the weekend.  2 weeks to go in the October option cycle.  Gold had a slight sell off today but the fundamentals remain in place.  We've been overbought here for quite a long time and perhaps it is finally time for gold to take an extended rest.  We've been moving sideways for 3 weeks.  I'm not exactly sure here and will ponder this over the weekend.  For now it's Friday afternoon and time for a break. 

Moving back to the upside as the Dow gained 80 points on average volume.  The advance/declines were almost 3 to1 positive.  We've worked off the overbought condition in the stock indices.  Higher prices are the next logical conclusion.  Todays action should send the summation index back to the upside.  We should hit new yearly highs for the S&P 500 in the next couple of days.  I'll go out on a limb and say that tomorrows employment report won't make a difference.  We'll probably move higher regardless.  That's my guess at the moment.  GE was little changed on average volume.  No trades there for now.  Gold moved higher on a weaker US dollar.  The gold futures rose $16.  The XAU gained 5 1/2.  ABX and GG tacked on over a buck, while NEM added 3/4.  Volume was light.  It looks as though I've missed the chance for the October gold share calls.  The XAU closed on its high and should continue to the upside tomorrow.  I still may try the November ABX calls.  Mentally I'm feeling OK.  The OEX calls a couple of days ago looks like another missed opportunity.  Of course that's always easy to say after the fact.  Like I've said before, no uptrend lines have been violated in the stock indexes so the trend is up.  Gold continues to attract capital.  That trend remains in place.  The same things that have been working continue to work.  We'll look to the unemployment report tomorrow for direction but it may be to the upside now matter what.  We'll see.    

Muddling through the days here as the Dow rose 12 points on what now passes for average volume.  The advance/declines were even.  The overall market was stronger than the Dow again.  We also rose in the final hour and that is short term bullish.  Not much for me to say here as it appears that we are simply in a holding pattern awaiting the Friday employment report.  I'm sticking with my bullish resolution.  I may try the OEX calls tomorrow on weakness.  GE was up 1/8 on light volume.  Nothing doing here but we remain overbought.  Gold was up a bit today as was the US dollar.  The XAU fell 2 3/4 as the gold shares diverged from the precious metal.  ABX, GG and NEM all had fractional losses on very light volume.  I have yet to put in an open order for some calls here as we haven't reached an oversold condition.  However I will be getting some calls eventually because the trend here is up and I don't think that it's over.  Mentally I'm feeling OK.  So we wait for Friday and that is the next market moving event.  A little over 2 weeks left in the October option cycle.  My thinking remains that higher prices are in the offing but I could be wrong.  The summation index continues lower but prices haven't followed.  The uptrend lines on the indices have not been violated yet either.  The presidential re-election rally remains in place.  Gold has been moving sideways for 3 weeks.  A rally in the stock market may not mean a rally in gold though.  We are almost back to the uptrend line in gold that now is at the 1760 level.  We'll see if it holds.  

Another mixed bag today as the Dow fell on light volume.  The advance/declines were positive.  The overall market was stronger than the Dow today.  I really feel that we are about to take off to the upside soon.  We've had plenty of time to fall here but it just isn't happening.  I think that I will look at the October OEX calls tomorrow to try and find a trade.  We've been moving sideways for a week and it is time to get going.  I could be wrong but I don't think so.  GE was off a touch on average volume.  No trades here for now.  Gold fell $7 on the futures and the US dollar was lower a bit as well.  The XAU fell 1 1/4.  ABX, GG and NEM had fractional losses on light volume.  The gold shares have been moving nowhere for a couple of weeks since the huge move that began in August.  I'm still a believer in higher prices here.  I'm not sure if I'll try the October or November gold share calls though.  Mentally I'm feeling OK.  It could be that we are just waiting for Fridays employment report at the moment.  The summation index continues lower but I am guessing that it will turn around soon.  When markets drop, they usually go straight down and we have been hanging around now for a while.  A short squeeze rally could be in order.  Gold is hesitating but the underlying fundamentals for higher prices haven't changed.  We'll see what happens tomorrow.

A mixed market today despite the 78 point rise in the Dow.  The NASDAQ showed a slight loss.  The advance/declines were positive.  Volume was light.  We should be seeing a rise here in my opinion, ahead of the employment report on Friday.  But the action lately has been sloppy.  The summation index continues heading lower.  I'm sticking with a bullish stance unless we break the uptrend line in the S&P 500 at 1420.  GE was up 1/8 on average volume.  As long as GE continues higher it should bode well for the stock indices.  Gold was up almost $10 on the futures today as the US dollar was lower.  The XAU rose 1 1/8.  ABX and GG showed slight gains, while NEM had a fractional loss.  Volume was light.  I'm still considering the October gold share calls but have not put in another order just yet.  I may go out to November here.  Mentally I'm feeling OK.  It's never a good sign when the Dow is the strongest index and the over the counter market lags.  That's what we got today.  It's a short term negative in my opinion.  The technicals here are getting mixed, which makes for a tough directional call.  But like I said before as long as 1420 holds on the S$P 500, I'll still look for higher prices.  It's still a presidential re-election rally for now.  Gold is still above the uptrend line from mid-August.  The short term technicals for gold remain overbought.  We'll check the overseas markets overnight and go from there.

We closed out the month to the downside as the Dow fell 49 points on light volume.  The advance/declines were negative.  I would have liked to have seen some follow through to the upside following yesterdays gains.  But it didn't happen.  I still think higher prices are coming and that we will take out the recent highs in the S&P 500.  But I could be wrong.  The summation index is pointing down.  We are short term oversold here on the stock indices but we haven't gotten a decent bounce.  Perhaps the beginning of the month money flows on Monday can get us going to the upside.  No major trend lines have been broken so I'm sticking with a bullish stance.  GE lost just a touch and the volume was heavy.  We're not short term oversold here, in fact it's just the opposite.  I'm not looking to trade GE here.  The gold futures fell $6 on the day as the US dollar had a decent move to the upside.  The fact that gold didn't drop that much lets you know that the money simply continues to flow there despite being overbought.  That won't last forever but you cannot fight it.  The XAU was off 1 1/8.  ABX, GG and NEM all had fractional losses on average volume.  I canceled the open order for the October ABX calls.  No need to leave that out there over the weekend.  I'll consider what to do in the next couple of days and then decide whether to place another order.  I'm pretty sure that I will but perhaps at a different strike price or price.  Mentally I'm feeling OK.  As usual the question is where do we go from here for the stock indexes.  I'm still a believer in higher prices.  We've got plenty of economic data out next week with the employment number on Friday.  So we will see where the market takes us.  Gold remains an attractive place for money to go from what I can see.  Nothing has stopped that trend yet.  I will look over the charts this weekend and try and come up with some type of trade for next week.  For now it's Friday afternoon and time for a break.

Back to the upside today as the Dow gained 72 points on light volume.  The advance/declines were 3 to 1 positive.  The overall market was stronger than the Dow.  I expect further upside tomorrow.  The only negative today was the light volume.  However positive market action was due and it showed up.  We will most likely set new highs for the year in the S&P 500 on this leg up.  That is my guess at the moment.  With GE having a very good day I believe that this will help lead the market higher.  GE gained 2/3 on good volume.  Today GE set a new high for the year and I think the overall market will follow.  Still overbought on GE but that is a condition that could last for a while.  Gold had a good day on the weaker US dollar.  The precious metal futures rose $26.  The XAU gained 5 2/3.  ABX up 7/8, GG higher by 1 1/3 and NEM higher by 1 1/4.  Volume was OK here.  It looks like that I've missed the chance to get long the gold shares this week as my open order wasn't filled on the decline yesterday.  I'm leaving in the October ABX call order for now but I doubt that it will be filled.  Mentally I'm feeling OK.  The presidential re-election rally is still in place.  We should continue higher into the beginning of November.  After that, it's anybodies guess.  Gold should continue higher as well and it is.  We'll probably see new highs on this leg up but I don't know when that will occur.  Any pull back in the gold shares looks like it can be bought.  The money continues to flow there.  We'll end the week, the month and the quarter tomorrow. 

Continuing lower today as the Dow fell 44 points on light volume.  The advance/declines were negative.  The overall market was weaker than the Dow.  As much as I have remained bullish here and still believe that a decent up day is coming soon, I cannot ignore the recent market action.  We're oversold and staying there.  That can be a dangerous condition.  The summation index is heading lower, implying lower prices.  I can't say that I have a good feel for what is happening right now.  European worries have finally resurfaced, so we could once again go into a headline driven environment.  This is a problem that isn't simply going to go away.  I have no OEX trades in mind at the moment.  GE was off 1/4 on light volume.  I'll hold off on any trades here for now as well.  Gold fell $12 on the futures as the US dollar had a bit of strength.  The XAU sold off hard early but made it back to finish the day higher by 2/3.  ABX was flat, while GG and NEM had slight gains.  Volume was average.  The fact that the gold shares were able to come back after early morning losses is encouraging going forward.  I'm leaving in the open order for the October ABX calls.  Gold itself remains above the critical 1740 level.  Mentally I'm feeling a bit tired, did not sleep well.  The S&P 500 remains above the uptrend line that began in June, so despite the recent swoon no real technical damage has occurred.  If we somehow break that line, then the game changes.  Hasn't happened yet.  Gold is taking a rest here and I expect the uptrend there to continue.  The only problem for the markets here is if we would all of a sudden fall apart in an already oversold condition.  I think the possibility of that is slim but what do I know?  I'll continue to leave the order in for the gold share calls unless we break 1740 in gold itself.  If that happens I'll have to reassess the situation.  All eyes will be on Europe tonight so we'll see what happens. 

A one day reversal to the downside today as we opened higher and closed lower.  The Dow fell 101 points and the volume was nothing special.  The advance/declines were almost 3 to 1 negative.  The summation index has turned lower.  I was expecting higher prices near term and it hasn't happened.  I still think we will see a decent move up within the next couple of days.  That's what my technical work is saying.  I could be wrong.  No real reason for todays lower prices but we fell off in the last hour and that isn't bullish going forward.  The uptrend line in effect since June has not been broken.  GE was off a touch on better volume.  I'll wait until we get back to the 50 day moving average and go from there.  Both the gold futures and the US dollar were up slightly today.  However the XAU lost 3 1/8.  ABX, GG and NEM all had fractional losses on average volume.  I'm leaving in the open order for the October ABX calls for now.  The uptrend line for the XAU comes in around the 180 level.  We aren't there yet.  I don't think that we are beginning a huge decline in gold but with gold you never know.  Things could get volatile.  I'm still a believer in higher prices going forward though.  Mentally I'm feeling OK.  We'll have to see if we get any follow through to the downside in the stock indices tomorrow.  Perhaps my take on things is wrong here but no technical damage has occurred yet.  I still think we should rally into the November election.  Even if gold decides to take a rest here I think it will be a chance to get the calls once again.  On the daily gold chart 1740 looks to be the key level that should hold.  If not then I will have to readjust my thinking.  We'll see what tomorrow brings.   

A lower start to the week as the Dow fell 20 points on light volume.  The advance/declines were negative.  Still basically moving sideways for the S&P 500.  I continue to believe that this is simply a pause before we head higher.  I see nothing to change that view for now.  Plenty of economic data out this week so maybe that will get things moving.  GE was off 1/8 or so on light volume.  I'll get the calls here when we get to the 50 day moving average, when and if that happens.  Otherwise it's a waiting game.  Gold fell today, the futures dropped $13 on a slightly higher US dollar.  The XAU lost 6 1/8.  The gold shares underperformed today.  ABX off 1 1/2, GG down 1 7/8 and NEM lost a buck.  Volume was average.  The gold shares were due a pullback and this is probably the start.  I've placed an open order for the October ABX calls since I believe that we will head back up to test the highs again before the end of the October option cycle.  No real hurry though as I have priced the ticket away from todays premium.  If ABX continues to drop the order may be filled.  Mentally I'm feeling OK.  I saw a lot of press this weekend about the divergence of the Dow transports, which I mentioned last week.  When everybody sees the same thing in the markets it usually doesn't mean anything.  We'll see.  The transports got a bounce today.  My work actually shows that we should see a move up in the stock indices this week despite the overbought conditions.  Time will tell soon on that.  Haven't had any news from Europe in a while to get things going.  End of the month and the 3rd quarter coming up on Friday.  We'll keep an eye on things overnight and go from there.

A slight one day reversal to the downside as the Dow opened higher and closed lower.  The major average finished the day with a loss of 17 points on expiration good volume.  The advance/declines were positive.  I think we are just waiting for the next leg up at this point.  I've been expecting some end of September weakness and it is just not happening.  The Dow transports continue to fall though.  I don't have any trades in mind for the OEX at the moment.  GE was up 1/8 on average volume.  I'm waiting for an entry point there as we are both short and medium term overbought.  Or you could just say that I missed the move higher unless we simply continue to move straight up.  Gold gained $7 on the futures as the US dollar lost just a touch.  The XAU was up 1 3/4.  Remaining very overbought here on a short term basis.  I really cannot try the calls here unless we work off some of the overbought condition.  ABX and GG had fractional gains, while NEM had a fractional loss.  Volume was good.  I'm still keeping an eye on the October calls for the gold shares.  Mentally I'm feeling OK.  There still aren't a lot of sellers of stock here.  The presidential re-election rally remains in place.  Rallies can last longer than you think and that seems to be the case with this one.  Gold continues to move higher and there aren't any sellers there either.  I'll simply have to try and remain patient.  We'll start the October option cycle on Monday and go from there.  It's Friday afternoon and time for a rest. 

Still consolidating the gains here in my opinion as the Dow gained 19 points on light volume.  The advance/declines were negative.  Sold off early and came all the way back.  Overbought, staying there and that hasn't changed.  The Dow transports have sold off hard this week while the Dow itself hasn't.  That's a divergence that shouldn't be ignored going forward.  The fact that oil dropped this week and the transports didn't rally makes you wonder as well.  But as long as the stock indices go higher, there is nothing that says they just can't keep on doing that.  Any pull back will be bought most likely.  GE was up over 1/8 on OK volume.  GE continuing to the upside bodes well for the overall market as well.  I'd like to get the calls here but not until we get back to the 50 day moving average if and when that happens.  Gold was flat today despite a rise in the US dollar.  That's bullish going forward.  The XAU dropped 1 1/3 though.  ABX, GG and NEM all had fractional losses.  Volume was average.  Like the overall market, there is nothing stopping the gold market from moving higher.  We're very overbought here and it hasn't mattered.  It will at some point but trying to figure out when that will be is a guessing game.  Mentally I'm feeling OK.  September expiration tomorrow and my guess is that we'll be higher.  Sometimes when the beginning of September is strong the second half is weak.  That hasn't happened yet for this year.  The gold shares have gone straight up for two months.  This won't last forever either.  I'm a buyer on a pullback when that eventually happens.  For now it's patience and a waiting game for the next trade.

We bounced around a little today but not much on the end result as the Dow gained 13 points on light volume.  The advance/declines were positive.  The technical story for the stock indices remains the same.  My thinking is that the recent sideways action is simply another pause before we head higher.  But I could be wrong and often am.  Still, I think we'll head up from here.  GE was up about 1/4 again on light volume.  Very overbought here on a short term basis but have been for a while.  Won't last forever.  Gold was flat on the futures today as the US dollar fell just a touch.  The XAU gained 1 3/4.  ABX, GG and NEM all had fractional gains on average volume.  Very overbought on the gold shares as well but there are no sellers.  I'd still like to try the October gold share calls if I get the chance.  Mentally I'm feeling OK.  The trend remains up for the stock indexes.  The summation index is moving higher.  There really isn't any overhead resistance and any decline will probably be bought.  We should keep moving up into the November election.  The market is telegraphing an Obama victory.  The market action is consistent with the president being re-elected.  The worlds central banks have indicated that they will print as much money as needed to keep the game alive.  That is extremely bullish for gold going forward.  The gold shares continue to outperform the precious metal.  That is bullish for them.  Just 2 days left here in option expiration week.  We really haven't seen any volatility yet.  We'll watch what happens overseas tonight and go from there.

Not much volatility yet for expiration week as the Dow gained 11 points on light volume.  The advance/declines were negative.  I still think we'll go higher this week but there really isn't a catalyst for prices yet.  Still overbought on the stock indices.  No need to risk a trade anymore in the September option cycle.  GE was up almost 1/4 on light volume.  Overbought, staying there and who knows how long that will last?  October GE calls on a pull back is the plan for now.  The gold futures were flat on the day which represented a comeback from the sell off in yesterdays aftermarket.  The Dollar showed a gain again today but the precious metal did not sell off.  This is a positive going forward.  The XAU gained 1 1/2.  ABX, GG and NEM had fractional moves one way or the other.  Volume was average.  Very overbought here but that can last a while in an extended up move.  That appears to be what's happening here.  Any sell off in gold or the gold shares can be bought.  However it seems everybody knows this already, hence no sell off.  I'm going to wait for some weakness though.  Mentally I'm feeling a bit tired.  I'm still in a wait and see mode.  I believe that the end of this month will produce some weakness but not necessarily this week.  The summation index is still heading higher.  Gold is practically going parabolic here and that is a dangerous thing to chase.  I have to wait for some weakness here.  A quick decline in gold would most likely set things up for the next rise.  That's a guess as usual.  Gold has gotten a lot of attention lately and that could be a precursor to a cooling off period.  We'll see what tomorrow brings.
 

A weekend hangover Monday as the Dow fell 40 points on light volume.  The advance/declines were 2 to 1 negative.  We made a bit of a comeback in the final hour.  The market still has the feel of wanting higher prices although we remain overbought on a short term basis.  Expiration week usually has a positive bias so we'll have to see if it holds true for September.  Some economic data out this week.  However all the news from the Fed and the ECB is already out.  We will have to wait and see where the next catalyst comes from.  GE was off a touch and volume was heavy.  I'm still considering the October calls here on some type of pullback.  Not yet though.  Gold was off a couple of bucks on the futures and $10 more in the aftermarket.  The US dollar was just a bit higher today.  The XAU was down 1/3.  ABX and NEM had fractional losses, while GG was flat.  Volume was average.  Gold really needs to take a rest as it has remained overbought for a couple of weeks.  I will attempt the gold share calls again on a pullback but must try and remain patient for now.  Mentally I'm feeling OK.  4 days left in the September options and it probably wouldn't be wise to try anything there.  I think that I will have to simply let this week go by trading wise.  But we'll see.  Perhaps if gold takes a rest I can make a trade there.  I'm leaning towards a wait and see attitude for now.    

The rally continues as the Dow tacked on another 53 points on heavy volume.  The advance/declines were 2 to 1 positive.  All signs point to higher prices as the stock markets attract capital.  Liquidity abounds.  There is plenty of money to go around the world.  In some sense it doesn't matter what the economy does for a while as long as the flow of money continues into stocks.  Price and volume confirm the move higher.  I'd expect the upcoming expiration week to have a positive bias.  GE up 1/8 and the volume very heavy once again.  If we can back back close to the 50 day moving average on a daily basis, I'll probably give the October calls a look.  Overbought and staying there for now.  Gold was up a bit on the futures.  The US dollar has completely broken down.  If we get a snap back in the dollar perhaps gold will drop and that could be the next entry point for the precious metal.  Or we might just continue going parabolic.  The XAU gained 5 1/3.  As long as the gold shares outperform the metal itself all systems are a go for higher prices.  ABX and GG gained 3/4 while NEM added 1 3/4.  Volume was very heavy once again.  I'm going to try and be patient before attempting the calls here again.  But we are going higher here as well.  Mentally I'm doing OK.  With only 5 days remaining in the September option cycle I probably will not be trying a short term trade.  It is hard to watch the gold shares rally when I sold mine early but I have been down this road before.  There will be a reaction and another chance at the calls but I'm going to have to wait for it.  I'll be checking the charts over the weekend.  For now it's Friday afternoon and time for a break.

The Fed delivered today as the Dow soared 206 points on good volume.  The advance/declines were almost 4 to 1 positive.  QE3 has arrived on schedule.  Summation index moving higher.  Technically there is nothing in the way for even higher prices on the stock indices.  Declines can still be bought.  We should move up into the September option expiration.  Perhaps we'll stall after that but I do not see any huge declines on the near term horizon.  I've missed the chance to get the September OEX calls unless we get a short term pullback.  There are only 6 days left for the September option cycle, so the risk in any trade there is high.  GE was up 1/8 on extremely heavy volume.  Overbought, staying there and that sounds like a broken record.  We are at $22 for GE now.  Perhaps the October 22 calls on a pullback will be the next trade.  Gold took off today as the US dollar continues to fall.  The precious metal gained $38 on the futures.  The XAU rose 8 7/8.  ABX up almost 2, GG gained 2 1/3 and NEM higher by almost 3 points.  Volume was very heavy, confirming the move higher.  I still think the gold shares are going higher but it's getting late in the game for this move.  Or not.  We could see a parabolic rise and that is what it is starting to feel like.  Obviously I sold the October ABX calls way too soon.  Mentally I'm feeling a bit tired.  Where do we go from here is the next question.  All the good news has been announced.  Sometimes a strong first half of September leads to a weaker second half.  If that happens it could set us up for the October calls.  We've got a presidential rally here in my opinion.  I think that the market is telling us to look for an Obama victory.  If so, we should stay strong into the beginning of November.  The fact that the financials have led this rally means that it's for real.  Gold is going strong and that trend should continue.  I will try and find another place to hop on board.  We'll finish off the trading week tomorrow.