The Dow dropped 85 points today on average volume. Advance/declines were barely negative. The overall market was much stronger then the Dow, implying higher prices going forward. We were down around 150 at one point but buying the dips is the mantra for now. Gold was up $3 and the XAU rose 3 points. ABX was up 15 cents on heavy volume as we churned around in that issue today. My puts are under water but I think today would have been the proper day to buy them. Timing is everything. My scenario is that the trade deficit will be better then expected tomorrow and the dollar will rally. If that occurs it should drive the gold shares lower. I am seeing a valid sell signal on the RSI for the XAU here. We'll see. GE lost 20 cents and the volume was light again. It's a waiting game until Friday there. A lot of volume in the $42.50 calls for GE. I'm staying out for now but who knows about tomorrow? I'm not getting a legitimate signal from anything on the charts right now and it looks like it could go either way. The daily up trend is holding for now though. Mentally I'm feeling OK, got a good nights sleep. It seems as though the market just wants to go higher regardless of earnings or anything else. We do get inflation data on Friday, that could be a mover. And we have expiration week coming up. So I think the volatility will pick up here in the near term. I would still be leaning to the long side unless we get weakness in all the indices at the same time. There is still money looking for a place to be invested.