Back to the upside as the sellers disappeared for the day. The Dow gained 267 points, wiping out yesterdays loss. Volume was a bit higher than yesterday. Advance/declines were about 3 to 1 positive. Not oversold anymore. Tough to trade when it gets like this. I'm going to have to wait for a decent signal to trade the OEX. Plenty of time in the option cycle. Gold lost around $10 today and the XAU fell 4 points. ABX, GG and NEM all lost more than a point on decent volume. I bought some more GG calls. It is strictly an earnings play. Earnings are out on Thursday morning and we are so oversold here that I am expecting a pop to the upside. ABX reports then as well. This has to be a short term play because the fundamentals for gold here have changed. The dollar is rallying and the flight to safety caused by the recent stock market sell-off has ended. I do think that gold will look like a better long trade in the next couple of months. GE was up 3/4 but the volume was light again. Mentally I'm tired, did not sleep well. The risk in this new GG trade isn't that much, money wise. I think it has a good chance of working out if I keep the short term time frame in mind. That's not to say that we couldn't just keep on falling here in gold. We could. I should be out of both of these trades on Thursday, Friday at the latest depending on breaking news. We'll see.