More downside today as we ended near the lows for the week. The Dow lost 240 points on average volume. The advance/declines were 4 to 1 negative. I really feel as though we at at the edge of a cliff. We're at the bottom of the trading range and I think we will break it to the downside. Unfortunately I don't own any OEX puts yet as the premiums are very expensive with the recent volatility and 3 weeks left in the October cycle. I'll still try and get some before the employment report next Friday if we get some upside next week. But that may not happen. We're oversold here but that doesn't matter if we see a collapse. There aren't any reasons to buy stock here just yet. GE lost 2/3 on better volume. Probably getting ready to break down here as well. I'm going to get some January calls here next month. That has been the idea and I'm sticking with it. Gold was up $5 on the futures. The XAU was higher during the day but ended up only 1/2. ABX rose 3/8, GG gained a buck and NEM higher by 3/8. Volume was a little better today. The US dollar had a good day as money sought safety. However the flight to gold for safety is not happening at the moment. I am still going to get some gold share calls next month for the November cycle. We're oversold on the gold shares. However if we get the market collapse that I fear here, the gold shares will follow. Mentally I'm feeling tired, did not sleep enough. The stock indices cannot gain any traction to the upside. When we started the week with about a 600 point gain on Monday and Tuesday but couldn't hold it, that was telling. It isn't a good sign. Perhaps we can get one more short covering rally in the beginning of next week to buy some OEX puts. If not, I'll have to look at the other longer term call trades in GE and the gold shares. There is still plenty of time in the October option cycle. The VIX is pretty high here and if it continues upwards, look out. The market will go where it wants. I think next week could be very interesting. But for now it's Friday afternoon and time for a rest.