Monday brought out sellers as the Dow fell 557 points on heavy volume. The advance/declines were better than 4 to 1 negative. The summation index is moving down. The Dow was the leader heading lower as all the major averages suffered losses. It is options expiration week and the last full week before Thanksgiving. So whatever needs to be done by the main players will take place this week. We will also start to get some economic data now that the US government is back in business. NVDA earnings after the bell on Wednesday should provide reasons for movement as well. On the technical front the S&P 500 closed below its 50 day moving average. The short term indicators here are moving lower and are not yet oversold. So the path of least resistance appears to be lower. With the summation index heading down it looks like some sustained selling is at hand. That said, I was looking at the SPY November calls today but did not make a purchase. I may consider them again tomorrow but the prudent course of action is probably to remain on the sidelines. We almost have a short term buy signal but not quite there yet. Also purchasing calls here flys in the face of the techncial evidence heading lower. Gold fell fifty bucks today. The US dollar was higher and interest rates were a touch lower. The XAU was off almost 5 points and GDX lost about 1 1/4. Volume was a bit above average. The short term indicators for GDX are moving down with plenty of room to go. GDX is once again trying to hold on to the 50 day moving average. Mentally I'm feeling OK. The VIX was higher and closed above the 20 level. The short term indicators on the VIX are almost overbought. If the VIX stays above 20 we'll see more selling and volatility. Right now that seems to be where the market is headed but we all know that things can turn on a dime in this game. Europe and Asia started the trading week on a down note with the exception of India. I'll keep an eye on the overnight developments.

Still a mixed picture as the Dow fell 309 points on heavy volume. The advance/declines were negative. The summation index is turning lower. The NASDAQ posted a small gain and the S&P 500 had a slight loss. Indices opened with huge gaps lower and the NASDAQ made it all the way back to positive territory for a one day upside reversal. The short term indicators for the S&P 500 are beginning to stall at the mid-range level. The S&P is once again trying to hold on to the 50 day moving average. It appears that things could go either way here but we'll look at the charts this weekend and take it from there. Gold dropped $111 on the futures. The US dollar was a bit higher and interest rates rose. The XAU lost 2 2/3 and GDX shed 7/8. Volume was good to the downside but the gold shares held up much better than the metal itself. They also finished well up from the worst levels of the session. But we still don't have any GDX option trades in mind right now. Mentally I'm feeling OK. The VIX traded up to 23 today only to fall back below the 20 level at the close. The short term indicators here are also at the mid-range level. Not sure where the VIX is going though as my latest readings of its daily candlestick chart have been off. Plenty of work to do this weekend as we head into option expiration week. Hopefully we'll get some kind of SPY option trade going next week. Europe and Asia closed lower today. It's Friday afternoon and time for a break.

Sellers returned today and the Dow fell 797 points on heavy volume. The advance/declines were better than 3 to 1 negative. The summation index is back to a stall. The NASDAQ led the way lower and has been the weakist link lately which isn't a good sign for the bulls. It looks like my idea of new all time highs for the S&P 500 in the near term were wrong. That index got clocked today as well, down over 100 points. The short term indicators here have rolled over with room to go. We were not totally convinced that things would continue higher after bouncing off of the 50 day moving average on the S&P but it looks like we've missed the chance for the SPY November puts. If we continue lower tomorrow the weekly chart on the S&P will have a bearish look as well. Not exactly sure what is going on here but the market always know more than we do. Gold dropped $48 on the futures. The US dollar was lower and interest rates ticked up. The XAU fell 8 points, while GDX shed 2 1/4. Volume was heavy heading lower. The short term indicators for GDX have started to turn lower. Not sure where the gold shares are headed next. I don't have any GDX option trades in mind right now. Mentally I'm feeling OK. The VIX was up today which fits the down market. It closed at the important level of 20. The short term indicators are back to moving up with room to go. The VIX is bouncing from its 50 day moving average that it could not get through. That is not a positive for stocks. Running out of time in the November option cycle but we won't try anything just for the sake of making a trade. Asia higher and Europe lower overnight. Tomorrow should be interesting.

The Dow continues to lead the way here as it gained 314 points on heavy volume. The advance/declines were about even. The summation index is moving higher but does not seem to have conviction along the way. The NASDAQ posted another small loss and the S&P 500 managed to eek out a slight gain. Some of the short term indicators on the S&P are moving sideways while others continue higher. Not yet short term overbought here. I'm still thinking that the S&P 500 is about to make new all time highs here but I could be wrong. The recent bounce off of the 50 day moving average started out strong but seems to be losing steam. Maybe we'll try the SPY November puts ahead of the weekend. Gold jumped $84 on the futures. The US dollar finished flat along with interest rates. The XAU climbed ten points and GDX added another 2 1/2. Volume was good again to the upside. Some but not all of the short term indicators for GDX are overbought. It looks like the gold shares are on their way to new all time highs but we'll have to wait and see about that. Mentally I'm feeling OK. The VIX was a but higher today and remains above its 50 day moving average. The short term indicators here are beginning to stall. Not yet oversold here either. I don't know what to expect next on this indicator. We'll look things over again tonight and go from there. Seven days to go in the November option cycle. Asia and Europe were up overnight. We'll see how things go tomorrow.

A mixed picture today but the Dow had a huge gain of 584 points to close at a record on good volume. The advance/declines were shy of 2 to 1 positive. The summation index is starting to move higher. The NASDAQ posted a small loss and the S&P 500 managed a small gain. The short term indicators for the S&P 500 are moving up. A partial holiday today in the US, so all the players weren't in the game. The governemnt shutdown could end tomorrow but that is probably already baked into the market. Waiting on a signal for the next trade. Possibly could be the SPY November puts next week. Or maybe the calls if we see some selling during this week. I still think that we are heading to new all time highs for the S&P 500 though. Gold was up $14 on the futures. The US dollar was a bit lower and interest rates were unchanged. The XAU was up 3 1/2, while GDX rose almost 2/3. Volume was light. GDX is getting to short term overbought on some of its indicators. I don't have any GDX option trades in mind at the moment. Mentally I'm feeling OK. The VIX was slightly lower and isn't short term oversold yet. Almost back down through the 50 day moving average here. The daily candlestick chart here looks like it wants to go lower. Asia was mixed and Europe higher overnight. I'll keep an eye on tonights headlines.

A nice rally to begin the week as the Dow gained 381 points on good volume. The advance/declines were 2 to 1 positive. The summation index is trying to turn up once again. The NASDAQ led the way and was up over 500 points. The S&P 500 gained over 100 points. The short term indicators for the S&P have turned back up with plenty of room to go. This looks like the beginning of a rally that will take us back to new all time highs. It looks like we are too late for the SPY November calls but we'll see. The US government shut down is about to end and that is the excuse for buying. I'd like to get some kind of trade in before option expiration but we'll see. Gold was up over $100 on the futures as money came back into this space. The US dollar and interest rates finished flat. The XAU jumped almost 13 points, while GDX added 3 3/8. Volume was good to the upside. The short term indicators for GDX are moving up. GDX is now above its 50 day moving average. Although GDX traded below that level it managed to hang around in that area before moving higher. We missed the GDX November call trade however I am not as sure that the gold shares will be heading to new all time highs here right away. But I could be wrong. Mentally I'm feeling OK. The VIX was lower today which fits an up market. The short term indicators here are mostly heading lower. This fits with our idea of new all time highs for the stock market sooner rather than later. Europe and Asia were up as money is being put back in stocks around the world. Tomorrow is Veterans Day and a partial holiday in the US. The stock market will be open but banks and Federal offices will be closed. We'll keep an eye on any overnight developments.

Today we had some one day upside reversals as the Dow rose 74 points on good volume. The advance/declines were positive. The summation index is still moving lower. Most stock indices opened with a gap lower and then closed higher with the exception of the NASDAQ which ended negative. The turnaround began around noon time and went all the way into the close. We are looking at the SPY November calls perhaps on any weakness Monday. The short term indicators for the S&P 500 are stalling once again and are not yet completely short term oversold. The 50 day moving average held things in check today. We have to figure out if the recent weakness was just another pause in the longer term rally or the start of maybe a five to ten percent drop which is long overdue. We are leaning towards the bullish outcome for now. However we'll look things over this weekend and go from there. Gold was up $16 on the futures. The US dollar was lower and interest rates finished flat. The XAU gained 6 2/3 and GDX added 1 3/4. Volume was average. The short term indicators for GDX are now moving higher and there's a chance that the decline in the gold shares is over. GDX closed just below its 50 day moving average. Mentally I'm feeling OK. The VIX traded above the 20 level early on only to close below it. It finished lower which fits with an overall slightly higher market. The short term indicators here are beginning to stall. Although the daily candlestick chart for the VIX looks bullish again this indicator has not panned out lately. Not sure which way it goes from here. I'll be checking the charts over the next couple of days to come up with a game plan for next week. Asia and Europe were lower on Friday to close out the week. It's Friday afternoon and time for a break.