Today was a mixed bag with the Dow lower and the NASDAQ higher. The most watched index fell 185 points on good volume. The advance/declines were about even. The summation index is still trending lower at the zero line but appears to be trying to turn around. The NASDAQ was up today and the S&P 500 basically unchanged. Waiting on the next catalyst to get things moving again, perhaps the Thursday meeting between the US and China. Some of the short term indicators for the S&P are overbought and others are moving sideways. I'm in the camp that we will hit a new all time high on the S&P in the near future. But I could be wrong. The breadth hasn't been all that good lately, however you cannot argue with price. Option premiums remain high. Gold was up twenty bucks on the futures. The US dollar finished slightly higher and interest rates ticked lower. The XAU gained almost 14 points and GDX was up 3 1/3. Volume was average. Looks like that we missed out on the GDX calls here again. GDX has broken above its short term down trend line today. The short term indicators here are moving higher with plenty of room to go. Perhaps this is a move that should be chased. Mentally I'm feeling OK. The VIX was lower today and the short term indicators are moving down in oversold territory. During rallies the VIX can stay oversold longer than usual. We'll see if that is the case this time around. Right now I suspect that it is. Europe finished pretty flat and Asia was higher with the exception of India last night. We'll see what tomorrow brings.

Moving to the upside to begin the week as the Dow rose 366 points on lighter volume. The advance/declines were positive. The summation index is beginning to slow its downward movement as we are at the zero line. My guess is that it will be successful and turn around barring any unforseen catastrophe. Stock markets opened with a gap higher and it was off to the races from there. The NASDAQ led the way higher by finishing up over 2%. It finally hit a new all time high. The S&P 500 was up over a hundred points. The short term indicators there are moving up and are not yet completely overbought. Buyers have returned and it appears that sellers have lost control. Gold dipped $41 on the futures. The US dollar was higher and interest rates lower. The XAU dropped 4 3/4, while GDX lost over a point. Volume was light. Some of the short term indicators on GDX are heading lower. Would like to see GDX get back to completely oversold before trying the October calls there. Markets rarely cooperate. Mentally I'm feeling OK. The VIX was flat today which isn't exactly what you want to see with such a strong market. In oversold territory for the short term indicators on the VIX but there is some room to go lower. Not a lot of economic data out this week. A US/China meeting on Thursday will be the most watched factor for the next few days. It appears that the selling has concluded and the S&P 500 should follow the NASDAQ to new all time highs at some point this week. The Dow on the other hand is pretty far from that. Option premiums are high so we will wait and see on the next trade for now. Asia and Europe were up as money is finding a home in stocks now around the globe. I'll keep an eye on the overnight developments.

We opened up with a gap higher and spent the rest of the day in a sideways channel. However the Dow fell 95 points on expiration heavy volume. The advance/declines were 2 to 1 negative. The summation index continues lower. Both the NASDAQ and S&P 500 posted light gains with the NASDAQ leading the way. The short term indicators for the S&P are at mid-range with some beginning to stall. Todays breadth was not good but I still think that the market goes higher from here. But getting this close to the zero line in the summation index could really spell trouble so we'll remain on the sidelines for now. Gold was off $16 on the futures. The US dollar was a touch lower and interest rates rose. The XAU and GDX had fractional losses on below average volume. The short term indicators for GDX are still trending higher. Considering the GDX October calls as the next trade. Mentally I'm feeling OK. The VIX was lower and the short term indicators here continue to move down. Another reason not to get too bearish here. The market is still at risk from the next Iran conflict headline but at least we've got the Fed and inflation data behind us for the time being. I'll be going over all the charts this weekend as we roll into the October option cycle. Asia was generally higher and Europe lower to close out the week. It's Friday afternoon and time for a break.

Bouncing back today as the Dow gained 316 points on good volume. The advance/declines were around 2 to 1 positive. The summation index is still moving down. We got a signal last night from the McClellan oscillator for a big move within the next two trading sessions and today fulfills that. Both the NASDAQ and S&P 500 were up over 1%. The NASDAQ led the way and that's a plus for the bulls. The short term indicators for the S&P have turned up from oversold territory. Out next task is to figure out if this is just another bounce out of nowhere as we work our way lower or the start of something more sustained to the upside. I'm inclined to think that it's the latter as most of the medium term indicators are now oversold and in areas that previously denoted more than just a short term bottom. However with the summation index in close proximity to the zero line, we can't rule out a further decline at the moment. We also do not know how much of the price action today was option expiration related. The game is never easy and we will be rolling over to the October option cycle so premiums will be high. Gold finished flat on the futures but its recent decline has subsided. The US dollar was barely lower and interest rates dipped. The gold shares followed the market higher. The XAU gained 13 points and GDX was up 3 1/8. Volume was average. The short term indicators for GDX are now pointing up. I'm still considering the GDX October calls. Mentally I'm feeling OK. The VIX was lower today and its short term indicators are moving down with room to go. The daily chart here appears that it wants to go lower which would support more gains in stocks. The fact that the VIX couldn't make it above its 200 day moving average is another sign that the bulls could be on the verge of taking charge here. We'll see. Europe was up and Asia mixed overnight. Expiration Friday on tap tomorrow.

Volatility returned as the Fed raised rates as most expected. The Dow fell another 631 points on heavy volume. The advance/declines were negative. The summation index continues to drop. The Dow led the way lower as it has recently. A final hour rally kept things from being worse. The NASDAQ was barely lower and that is a plus for the bulls. The S&P 500 had a modest loss and finished off of its lows as well. The short term indicators there remain oversold. Two days left in the September option cycle and if I was a short term trader I'd consider the SPY calls. But the short term trades are not my best efforts. I also thought that there was a chance that the Fed would leave rates unchanged but that didn't happen. Gold was off $23 on the futures after being positive for much of the session. The US dollar was higher and most interest rates ticked up. The XAU lost 5 1/2, while GDX shed 1 1/3. The gold shares came up from their lows on the day as well. Volume was good to the downside. GDX opened with a gap higher and sold off for the rest of the day. I did adjust my order for the GDX September calls a couple of times in the morning. However gold itself was remaining pretty positive and the gold shares weren't doing anything. I canceled my order for the GDX calls and did not think it was worth the risk. Preservation of capital took over. I am looking out to the GDX October calls as it is now oversold on a short term basis. But the fundamental backdrop for gold isn't positive here with higher rates and a stronger US dollar. Mentally I'm feeling OK. The VIX was up today but remains below its 200 day moving average. The short term indicators here are overbought but not completely. I'm not sure where the VIX is heading next. Stocks had a chance to fall apart at the end of the day but did not. The zero line on the summation index remains in sight. So it is a tough call as to what happens next here. The reason that I would favor the SPY calls with two days to go for the September options is the fact that we didn't see a negative close today when the market had every reason to seek one. Markets don't wait around to go down. The next two days should be interesting. Asia and Europe finished higher overnight. We'll see what tomorrow brings.

Another day of selling ahead of the Fed as the Dow dropped 328 points on average volume. The advance/declines were 2 to 1 negative. The summation index is moving down. I would be remiss here if I didn't mention the summation index is getting closer to the zero line. That means there is an increased risk that the market simply starts to fall apart here. The summation index usually isn't anywhere near the zero line so the fact that we are getting close should not be ignored. It doesn't mean that the market will crash but the odds of it happening go up. The short term indicators for the S&P are trending sideways in oversold territory. Any bounces for the S&P that we've seen lately haven't gone anywhere. We also haven't seen any huge declines or panic selling yet. I am not looking to trade any SPY options the rest of this week. Gold dipped $13 on the futures. The US dollar was higher and interest rates continue to move up. The XAU and GDX finished little changed on light volume. They did come up from the lows of the session. My open order for the GDX September calls wasn't filled. I adjusted it but it still did not get hit. I'm leaving it out there to see what happens tomorrow morning. If GDX dips early on I will most likely buy some calls ahead of the Fed. If not I'll cancel the order and see what happens after the Fed announcement. The short term indicators for GDX are oversold so this is where I'd like to try the calls. That doesn't mean GDX will rise from here as it can stay oversold during down trends. But this is where we think it could be worth the risk with only three days left in the September option cycle so we will try and take on this idea. Mentally I'm feeling OK. The VIX was slightly higher today as the 200 day moving average continues to provide resistance. The short term indicators on the VIX are starting to move sideways. This indicator should get going one way or the other tomorrow after the Fed. Asia and Europe closed lower overnight. Wednesday should be an interesting session and I should be up for the challenge. We'll keep an eye out for any overnight news.

Players returned from the weekend in a selling mode as the Dow fell 152 points on average volume. The advance/declines were negative. The summation index continues lower. The NASDAQ led the way down but not by much. There was a huge gap lower at the open but stocks recovered during the session. However they didn't make it back to positive territory. Finished up off the lows though. The short term indicators on the S&P 500 are now trending lower or sideways with most in oversold territory. No clear signal here and with only four days left in the September option cycle anything could happen. Retail sales due Wednesday morning but the Fed that afternoon is the main story. Not sure what to expect there with the majority of players expecting a hike. I'm not considering the SPY puts here anymore. Gold was off $84 on the futures. The US dollar was higher and interest rates ticked up. The XAU fell 11 3/4, while GDX lost almost 3. Volume was just above average. I did place an overnight order for the GDX September calls but it wasn't filled. GDX also opened with a big gap down and never recoverd. GDX is now short term oversold on some of its daily indicators. This too is a risky trade but it is the idea that I decided on trying over the weekend. It will depend on the market reaction to whatever the Fed does but getting to short term oversold on GDX was what we were looking for. I'm leaving the order out there so we'll see if it gets filled or not. If it doesn't get filled ahead of the Fed announcement on Wednesday, I'll cancel it. Or perhaps I'll adjust it tomorrow. Mentally I'm feeling OK. The VIX was up today which fits a down market. The short term indicators here are turning back up but the 200 day average proved to be resistance again. If the VIX breaks above there we could be looking at a bigger decline. Hasn't happened yet. Europe and Asia were generally lower. I'll keep an eye on the overnight headlines.