The Dow staged an impressive first day of the month rally as it gained 250 points on average volume. Advance/declines were over 3 to 1 positive. We were oversold and a bounce was due. What happens next is important for the medium term. If we fall back again, I think we can expect more of the same that we have seen recently with the market moving sideways. However if we can build on todays gain, I think we will take out the recent highs and the rally will resume. The summation index most likely turned up today but it will have to keep rising for the all clear signal going higher. We'll see. GE rose 47 cents on good volume. My January calls moved back to break even. Doubling the position at a better price seems to have been the right move at the moment. However we have plenty of time to go here. I do like todays action though and hopefully we can build on it. Gold only gained a couple of bucks even with the dollar losing ground. The XAU followed the overall market higher, gaining 4 1/3. ABX and NEM both rose 3/4, with GG tacking on 1/2. Volume was good to average. Perhaps gold will take a run at the highs as well. I think we'll need to see a lower dollar for that to occur but that's a guess as usual. I'll keep an eye on things. Mentally I'm doing OK. Today we got a rally out of nowhere and the following days will tell if it is for real or not. Fridays employment report and the market reaction to it will be very important. It could very well set the tone for the rest of the month. I think tomorrow will be a flat non-event while waiting for Fridays numbers. We'll see what happens.