Drifting higher to end the month as the Dow gained 28 points on pretty good volume.  The advance/declines were positive.  The summation index is still moving down.  The economic data today was in line or better than expected.  The short term technical indicators for the S&P 500 have turned back up again.  Some of the small stock indices have broken out to new highs.  So perhaps the overall market will follow.  The summation index is trending lower but stocks are not following.  We'll see what happens after the Fed announcement tomorrow.  GE dropped 1/4 on the same extremely heavy volume.  I'm still waiting for the dividend cut.  Gold was off $5 on the futures.  The US dollar was little changed.  The XAU was down 1 1/8, while GDX shed 1/4.  Volume was light.  We are short term oversold for the gold shares and gold.  Mentally I'm feeling a bit tired.  October was another positive month for the Dow and we are within striking distance of new all time highs.  We are however, pretty overbought on the medium term indicators.  We're also overdue for some type of pullback beyond the small drops we've seen so far this year.  Will something happen before the end of the year?  I certainly don't know.  We're in a favorable seasonal time period for the market but that doesn't mean we can't drop.  Earnings have been pretty solid overall so far.  It perhaps will take some kind of news event to send stocks lower.  But you cannot fight the trend and the trend is definitely higher.  Asia was mixed and Europe higher in last nights trade.  We'll see what the Fed has to say and how November begins tomorrow.

A bit lower to begin the week as the Dow fell 85 points on average volume.  The advance/declines were negative.  The summation index is still heading lower.  I'm not exactly sure what is going on right now but we are still overdue for a decline.  There was no follow through to the strong session on Friday.  Plenty of data and news this week so we'll have to see how things play themselves out.  End of the month tomorrow.  GE just keeps falling and dropped over 1/3 today.  Volume remains extremely heavy.  I'm still considering the longer term calls here.  Gold added $5 on the futures as the US dollar was lower.  The XAU and GDX had fractional gains on light volume.  Rates dropped today and that was supportive for gold.  Mentally I'm feeling OK.  The rally seems to have stalled here for now.  We've also seen a pick up in volatility which sometimes means that the trend is about to come to an end.  We'll know more for sure in the coming days.  We've also got political news coming out of Washington to deal with.  Whether it's the Russian probe or the tax reform, it should provide some market movement.  Plus we've got the Fed this week and the announcement of the next head of the Fed.  So there is a lot for the market to digest this week.  It should be interesting to say the least.  I don't have any SPY trades in mind at the moment.  Europe and Asia were mixed overnight.  We'll finish up the month of October tomorrow.

It's a rally that just won't die.  The Dow added 33 points on good volume.  The advance/declines were positive.  The summation index is still heading down.  The overall market was much stronger than the Dow, with the S&P 500 along with the NASDAQ soaring.  Whatever bearish candlestick patterns that were forming on the weekly charts were wiped out.  It's off to the races again for stocks.  We're still in a parabolic rise as far as I'm concerned but I certainly have no idea when it will end.  It will end badly though in my mind.  That's how it usually goes.  But for now it's still up, up and away.  GE is just the opposite.  It lost another 1/2 on very heavy volume again.  Perhaps my idea of the longer term calls is a waste of time.  Because if this stock can't rally when the market is in a bull run, when can it?  Gold rose five bucks and the US dollar was a bit higher.  The GDP report can in pretty good but the buck didn't do much.  The XAU and GDX had slight fractional gains on OK volume.  Mentally I'm feeling OK.  Although it looked like this was finally going to be a week to the downside, everything turned right back around today.  It is an incredible run.  We're also in a very positive seasonal time period form now until March of next year.  Just how much higher can we go?  With no overhead resistance, I can't really answer that question.  We are still pretty far away from the 50 day moving average on the S&P 500 daily chart.  I thought this week was the beginning of a move that would at least take us back there.  But it was not to be.  Perhaps just stepping aside from this freight train is the smartest idea yet.  Well I suppose I at least figured that out after laddering up and losing all those SPY trades in the beginning of the month.  But the market rolls on and so does the trading.  Plenty of economic data due next week capped off by the jobs report on Friday.  I'll be checking the charts over the weekend as usual and hope to come up with a new idea.  Europe and Asia were mostly higher overnight.  It's Friday afternoon and time for a break.

A mixed bag today as the Dow gained 71 points on good volume.  The advance/declines were slightly positive.  The summation index is heading lower.  The overall market was weaker than the Dow with the NASDAQ negative.  Where we go from here is important because it will give us a clue as to whether this is going to actually be a decline or simply some sideways digestion.  The short term technical indicators have rolled over for the major stock averages.  We'll get the first reading on 3rd quarter GDP tomorrow and it should be a market mover one way or the other.  I have no SPY trades in mind here and the brokerage change that I recently had to endure lives on.  Chucky baby Schwab is lame.  GE lost another 18 cents on heavy volume.  Will the selling ever stop here?  Gold lost $11 on the futures as the US dollar rose a full point.  The XAU dropped 1 1/2, while GDX shed 3/8.  Volume was good.  Gold should continue to fall here as the US dollar has just broken above resistance.  The daily dollar chart appears to have an inverse head and shoulders pattern on it.  The neckline was violated today.  Mentally I'm feeling a bit tired.  This could possibly be the first week in quite some time that the market doesn't have a gain.  If so, we'd now also have a bearish candlestick pattern possibly in place on the weekly charts as well.  Hasn't happened yet but it is something that bears watching.  I'm still considering the longer term GE calls but will wait for the dividend cut.  I'm not sure what I'll do there is there is no dividend cut.  The game is in a continual state of flux.  We'll see what the GDP number has to say and go from there.  Asia was mixed and Europe higher last night.  We'll close out the week of trading tomorrow.

Some selling pressure today but we did come up off of the lows.  The Dow fell 112 points on good volume.  The advance/declines were 3 to 1 negative.  The summation index has rolled over and is heading lower.  The bearish candlestick pattern on the daily SPY chart is coming to fruition.  We should at the least see some sideways price action here if not a decline.  The constant short term extremely overbought condition is coming to an end.  There's support at 2500 for the S&P 500 but that is pretty far from here.  But we could easily get there because the run up has been steep.  GE was off 3/8 and the volume remains very heavy.  I'm still looking at the longer term calls here.  The idea is to still wait for the announcement of a dividend cut.  Gold was pretty much flat on the futures as the US dollar was a bit lower.  The XAU and GDX had fractional losses again on better volume.  Mentally I'm feeling OK.  Most major stock indices came up off of their lows today so perhaps the decline may abate for the time being.  That's a guess as usual.  The short term technical indicators have rolled over.  We are still pretty far above the 50 day moving averages for most indexes.  I would think that the decline can at least get that far.  But who knows?  The rally has been much longer than I thought to begin with.  The VIX spiked up today but finished well off the highs.  At any rate we're seeing a change in the bullish tone of the market so we'll have to keep an eye on that.  Asia was mixed and Europe lower last night.  We'll see how markets react to todays US sell off overnight.

The Dow continues its climb as it gained 167 points on average volume.  The advance/declines were slightly positive.  The summation index is trying to roll over.  The overall market was weaker than the Dow.  Good earnings are providing the fuel higher at this point.  The fact that the Dow is once again leading the way is usually a late stage event in a rally.  But you cannot argue with price and there remains no overhead resistance.  The small stocks are not leading the way here either and that is really what you'd like to see.  GE lost 3/8 on very heavy volume.  The selling simply continues here.  I'll wait for the dividend cut to take a longer term call position here.  My guess is that the slashing of the dividend would be the final blow.  There will however probably be some more tax selling in December.  Gold fell a couple bucks and the US dollar was slightly higher again.  The XAU and GDX had fractional losses again on light volume.  No big movement in the metals market lately.  Mentally I'm feeling a bit tired.  The Dow set a new all time high today but all the other major averages lagged.  Conditions remain extremely overbought and I really don't know how long this can go on.  The usual October volatility has yet to appear.  The bearish engulfing pattern remains in place on the daily candlestick chart for the S&P 500.  That implies some sideways action at the least, if not some type of drop.  So we'll have to see how the rest of the week plays out.  Europe and Asia were slightly positive overnight with the exception of the Hang Seng once again.  We'll keep an eye on the overnight developments.

Lower for a change to begin the week as the Dow fell 54 points on almost average volume.  The advance/declines were almost 2 to 1 negative.  The summation index is trending sideways but that could change here soon.  No real news today but we've been overbought for so long that some kind of downside action is way past due.  We do now have a bearish engulfing pattern on the SPY daily candlestick chart.  So we'll see where we go.  GE fell back 1 1/2 on the same very extremely heavy volume that we saw on Friday.  I am looking at the longer term calls here and now am pretty sure that will be my next trade.  I think that the ideal scenario would be to purchase them the day that GE cuts its dividend but I have no idea when that will be.  Rumor has it that it could be at an analysts meeting on November 13th.  Gold was up a couple bucks on the futures, while the US dollar ended little changed.  The XAU and GDX had fractional losses on light volume.  Mentally I'm feeling OK.  Not much on the economic data front this week with the exception of GDP on Friday.  The VIX had a small spike up today and that is a shift from what we've seen lately.  All selling has been met with buying lately so we'll have to see what happens tomorrow.  It's too early to tell if an actual short term top is in.  But it's possible.  Europe and Asia were both higher with the exception of the Hang Seng.  We'll see what happens tomorrow. 

This is what a blow off top looks like as the Dow climbed 165 points on average volume.  The advance/declines were positive.  The summation index is still basically moving sideways.  The overall market was higher but not as much as the Dow.  I don't know how long this will last but it is interesting to watch.  Shorts continue to get squeezed and the beat goes on.  I cannot explain why the market is acting as it is but you just cannot argue with price.  No overhead resistance is another factor in the rally.  No real news to speak of as the rally feeds on itself.  We'll see how far we can go and it's usually further than anyone expects.  GE opened lower and closed higher.  It gained 1/4 on incredibly massive volume.  Probably some short covering here as well.  Getting the calls early today would already show a nice profit.  The weekly chart now looks bullish and any move back down towards 22 could be the time to try the longer term calls.  Gold dropped $8 on the day as the US dollar was stronger.  The XAU and GDX had slight fractional losses on average volume.  The dollar and gold are acting in tandem now with the usual inverse relationship.  Mentally I'm feeling tired.  The rally is taking on a life of its own.  Any hint of selling is met with buyers.  I'm really beginning to wonder just how far this thing will go.  Expiration week is over so we'll have to see how things progress from here.  Earnings have been OK so far and as long as that holds up the sky's the limit.  I wouldn't chase anything here because as I have said before this probably won't have a happy ending.  I could be wrong but I really do not think so.  In my view this is the fifth and final leg up from the rally that began in March of 2009.  I don't know how far it will go but I do think that it will be the end of the bull market.  Time will tell on that.  Not a lot of data out next week but we will get the first look at 3rd quarter GDP.  Europe and Asia were higher overnight but certainly not as much as the US.  It's Friday afternoon and time for a break. 

The market opened 100 points lower today and fought all the way back.  The Dow rose 5 points on light volume.  The advance/declines were barely higher.  The summation index continues in a sideways direction.  This seems to be a market that just does not want to go down.  The selling was met with plenty of buying.  I can't explain it but you cannot fight it.  We'll just have to see how high we go here before the inevitable drop.  There's still no overhead resistance and there's still no end in sight.  GE was up about 1/2 on very heavy volume.  Perhaps somebody knows about the earnings ahead of time.  I still think GE is a good candidate for the longer term calls.  Gold was up $8 as the US dollar was lower.  The XAU and GDX had slight fractional gains on light volume.  Mentally I'm feeling OK.  It's been quite a run for stocks as we've been overbought for weeks.  The technical indicators are as blown out as I can remember seeing.  Just as things got out of control years ago with the huge decline, we are seeing the opposite today.  And the rallies usually last longer than the declines.  So I don't exactly know how high we're going to go here.  But it won't be pretty when it ends.  I really don't think that the market has even sucked in the public yet.  We'll see how the expiration goes tomorrow.  Asia was mixed, with the Hang Seng getting clobbered.  Europe was lower.  We'll close out the trading week tomorrow.    

The Dow took off today and rose 160 points on light volume.  The advance/declines were barely positive.  The summation index continues to track sideways.  Good earnings news from IBM fueled the rally.  The overall market was much weaker than the Dow and that is a warning sign.  But we have seen warning signs for weeks and yet we haven't seen even a hint of a decline.  I'll say it again, when this ends it will be badly.  The straight up nature of the rise almost predicts its eventual failure.  But we'll enjoy the ride for now.  GE was off a few cents on average volume.  This is one stock that hasn't participated in the rise.  Maybe that will change with its earnings on Friday, maybe not.  Gold was off a few bucks on the futures as the US dollar finished little changed.  The XAU and GDX had fractional losses on very light volume.  Mentally I'm feeling a bit tired.  Usually when the Dow leads things higher we're near the end of a move higher.  And it certainly led things up today.  That doesn't mean we can't go higher.  But as the rally continues unabated to the upside with no pause, it just makes the inevitable drop that much more volatile.  That's my opinion but I've seen it happen before.  However I don't know when it will occur now.  There's still no overhead resistance and there aren't any sellers.  Extremely overbought on all time frames day after day.  It won't end well.  But again, I don't know where the end is.  Well at least I stopped laddering up on the SPY puts a couple of weeks ago.  Europe and Asia were higher in last nights trade.  We'll keep an eye on the markets overnight.

The Dow crossed 23000 for the first time today and closed just shy of that round number.  It gained 40 points on light volume.  The advance/declines were negative.  The summation index is still trending sideways.  Breadth is not confirming the rise here and the overall market has been weaker than the Dow for the past couple of sessions.  That hasn't meant anything for quite some time now.  Overbought and extremely so but we're in a practically straight up move for now.  When it ends is still a guessing game.  GE was off over 1/8 on heavy volume.  Gold dropped $15 on the futures.  The US dollar was a bit higher once again but not so much that a $15 drop in gold would occur.  The XAU and GDX had slight fractional losses on light volume.  Mentally I'm feeling OK.  The story continues with simply higher prices for the stock market, overbought conditions, no overhead resistance and no end in sight.  The positive option expiration week bias seems to be in effect as well.  The month of October generally sees some volatility and we haven't experienced that yet either.  There's not much else to report.  When the technical indicators don't work anymore, there is nothing more to do except wait until they do.  Normally we do not stay overbought for weeks on end.  I'll simply have to remain on the sidelines for now.  Asia was slightly higher and Europe slightly lower in last nights trade.  We'll see what tomorrow brings.

More of the same today as the Dow gained 85 points on light volume.  The advance/declines were barely negative.  The summation index continues to trend sideways.  Overbought, upward bias and no overhead resistance.  I keep repeating myself but the conditions have remained this way for weeks on end.  I still believe that we're in the midst of a blow off top that will eventually reverse and the decline should be swift.  But as to when this occurs is anyones guess.  Earnings season is upon us and that will probably be the market mover going forward.  GE was up 1/3 or so on heavy volume.  We'll get the earnings here on Friday.  Gold dropped $7 on the futures as the US dollar was a bit higher.  The XAU fell 1 1/8, while GDX lost 1/3.  Volume was average.  Mentally I'm feeling OK.  Option expiration week is here and we're already seeing the usual positive bias.  It appears that there's nothing that will derail this rally right now.  It has shook off whatever bad news that has come up and there are no sellers.  So we'll enjoy the ride for now.  We'll get the Feds beige book on Wednesday but otherwise it's a light week for data.  Asia was higher and Europe mixed overnight.  We'll keep an eye on tonights developments.

Just another day in the marketplace as the Dow rose 30 points on light volume.  The advance/declines were positive.  The summation index is trending sideways.  The data came in about as expected and the market drifted lower in the final couple of hours.  Option expiration week is coming up and I'll expect the positive bias to show up for stocks.  The VIX remains low and there appears to be nothing in the way of higher prices.  RUT has underperformed lately and that will be something to keep an eye on.  But unless we get something out of the blue, I'd still expect higher prices going forward.  GE was off a few cents with the volume getting back to normal.  Oversold here both short and medium term.  Gold rose almost $10 to finish back above $1300.  The US dollar was little changed at the close.  The XAU and GDX had slight fractional gains on very light volume.  Mentally I'm feeling OK.  There looks to be a short term negative divergence in the daily RSI indicator for the major stock averages.  Whether or not this leads to some near term weakness remains to be seen.  This market has consistently stayed short term overbought for weeks.  The indicators haven't worked as you would expect.  I still think this is the final speculative blow off before we see something more protracted to the downside.  But I've though that for a while.  I'm still on the sidelines for now.  The transfer of my trading account to a new broker is still having problems.  You would think that in this day and age something like that would be seamless.  But Charles Schwab can't even get streaming charts and quotes right.  In due time I suppose but I will be shopping around for another online broker.  Back to the market themselves and earnings season is upon us.  We'll have to see what kind of surprises turn up there.  Asia was higher and Europe mixed overnight.  I'll be checking the charts over the weekend as usual.  However with just a week left in the October option cycle, I do not anticipate any SPY trades right now.  It's Friday afternoon and time for a break.

A bit lower today as the Dow fell 31 points on light volume.  The advance/declines were slightly positive.  The summation index is heading sideways.  Not sure if this is the beginning of the long awaited drop but we'll see.  Not a lot of news today but the retail stocks along with the major banks took a hit.  We're still short term overbought on all the major stock indices with any metric that you choose.  October has a history of volatility and there is still plenty of time in the month for some excitement.  So we'll see.  I'll repeat that there is no overhead resistance for now.  GE was off a couple cents but the volume remains way above average.  I'm still considering the longer term calls here.  Gold added $7 on the futures and the US dollar was a bit higher.  The XAU and GDX were both little changed on light volume.  Mentally I'm feeling OK.  It's been an uneventful week so far for stocks.  We'll get retail sales and the CPI tomorrow.  The political headlines have been quiet along with the geo-political rhetoric.  The VIX remains below 10.  Unless we get hit with something out of the blue, you've got to keep looking for higher prices.  Not much else to report at the moment.  Asia was higher and Europe mixed last night.  We'll finish out the week tomorrow.   

Another day another new all time high as the Dow rose 42 points on light volume.  The advance/declines were positive.  The summation index is trending sideways.  Nothing new to report.  Just another day of overbought conditions with no sellers.  The Fed beige book was a yawn.  The RUT appears to be rolling over but it could also just be a pause before we move up there again as well.  The VIX remains below 10.  I don't have any trades in the works.  I'm on the sidelines for now after my last great idea to ladder up on the SPY October puts and we all know that didn't go as planned.  GE was off over 1/4 again and the volume was extremely heavy.  There's talk now of perhaps cutting the dividend.  That would be the final nail in the coffin for GE I think and the ideal time to perhaps try the longer term calls there.  Gold was flat on the futures as the US dollar was lower.  The XAU and GDX had slight fractional gains on light volume.  Mentally I'm feeling OK.  It's been a quiet October so far but that probably won't last for the whole month.  October can often times be quite volatile so we'll have to see what happens from here.  We are still in the condition of no overhead resistance so the sky remains the limit.  I am getting sell signal readings from numerous indicators that I keep track of but we haven't even seen a hint of a sell off.  At some point that will change but until then it's simply more of the same.  None of the sell signals for the SPY have worked lately and I'll be simply stepping aside until we see a more reasonable market.  Asia was generally higher and Europe mixed overnight.  We'll see what tomorrow brings.

Back to the upside today as the Dow added 69 points on light volume.  The advance/declines were shy of 2 to 1 positive.  The summation index is still moving sideways.  Still very overbought but I've been saying that for weeks now.  We'll just have to see how high we go before we drop.  No overhead resistance and nothing to say that a decline is imminent other than the extremely overbought conditions.  Perhaps we'll just run things up until the October expiration.  GE was down a few more cents on very heavy volume.  Eventually this stock will sell itself out but when is the question.  Gold rose $5 as the US dollar was lower.  The XAU and GDX were both fractionally lower on average volume.  Mentally I'm feeling OK.  So where do we go from here?  I don't have any trades in mind at the moment.  With the brokerage problems that I'm experiencing at the moment, that's probably a good thing.  My belief is that we're in a speculative upside blow off top that will not end well.  That's usually the case if my idea of the blow off is correct.  I don't know when it will end and exactly what will set things off.  But I do believe that it will happen.  Perhaps it will be the upcoming earnings that sets things off or maybe a geo-political event.  Or something completely out of the blue.  So let's enjoy the rally while it lasts.  Asia was higher and Europe generally lower overnight.  We'll see what tomorrow brings.  

We begin the week a bit lower on this semi-holiday as the Dow shed 12 points on very light volume.  The advance/declines were negative.  The summation index is beginning to move sideways.  The overall market was a bit weaker than the Dow.  We're still short term overbought for the major stock indices.  Inflation data and retail sales out this week along with the Feds beige book.  I'm not sure any of these will be real market movers but you never know.  I'm on the sidelines for now.  GE got pounded today on very heavy volume.  This stock lost almost a full point on extremely heavy volume.  Somebody resigned from the company and somebody else was placed on the board of directors.  Neither of these developments warrants the price action today.  I still like the longer term calls here but couldn't buy them if I wanted to.  More on that later.  Gold rose over $10 on the futures, while the US dollar was little changed.  The XAU and GDX had fractional gains on very light volume.  Mentally I'm feeling OK.  Why can't I purchase the GE longer term calls.  Well actually I could but not on the trading platform that I usually use.  My account at options express has moved over to Charles Schwab today and it's a disaster.  The real time quotes and charts at Schwab don't work.  The usual technical difficulties excuse on the first day of school.  Mind you they had months and weeks and days to get ready for this.  But they can't handle it and that is disconcerting for a trader such as myself.  The quotes and charts are basics to trading.  Options express had a very easy and clear way to look at things on a daily and intra-day basis.  I'm now stuck with Charles Schwab who obviously is in over their heads.  We'll see how it plays out.  The RUT looks like it rolled over today and if so we'll have to see what happens form here on out.  RUT led us up and perhaps it will now do the opposite.  All phases of the US markets will be back open tomorrow.  Europe and Asia were generally higher last night.  We'll keep an eye on the overnight action.

Just a slight pause today as the Dow dropped a little over a point on pretty light volume.  The advance/declines were a bit shy of being 2 to 1 negative.  The summation index is still trending up but today could get it to start to move sideways.  We did see some selling today but it wasn't sustained.  We are still overbought and staying there.  The employment report showed a loss of jobs for a change but it was assumed to be weather related.  The market has taken on a life of its own here.  I'm really hearing too much bullish talk in the media lately despite the huge rise.  More than overdue for a drop.  GE was off over 1/8 and the volume picked up a little.  I'm still considering the January calls here but GE has been a laggard during this rally.  It may also see some end of the year tax selling as well.  Gold was only up $4 on the weak jobs report and the US dollar had a slight loss.  The XAU and GDX had minor fractional gains on average volume.  Mentally I'm feeling OK.  It was a week of trading losses for me as my strategy of laddering up the strike price on the SPY October puts was a failure.  I'll be stepping aside for the rest of the October option cycle as of now.  Things could change but we've had a sell signal for days on end and it hasn't worked.  We're in a speculative bullish run up and there's no telling how long it will last.  I won't exactly be surprised when it ends but trying to predict it is fruitless for me at this point.  I was among the shorts that got squeezed.  It's really back to the drawing board for me.  I'll probably wait until the market gets back to a more normal situation and the indicators return to working as they should.  For now we'll enjoy the ride up.  Asia was higher and Europe a bit lower last night.  It's the first Friday in October and time for a break.

The rally lives on and picks up steam as the Dow gained 113 points on light volume.  The advance/declines were positive.  The summation index continues higher.  Overbought to the extreme at this point.  I was stopped out of the final SPY October put trade for another roughly 30% loss.  My line of thinking for these trades just was not the right one.  Despite being overbought for days the market just climbed higher.  This is a speculative blow off top in my opinion.  How much further that it goes is up for debate.  But it won't last forever.  That said, there is no overhead resistance and we are hitting new all time highs each session.  GE was up a few cents on average volume.  Gold was down six bucks as the US dollar was higher.  The XAU and GDX had slight fractional losses on light volume.  Mentally I'm feeling tired as I did not sleep well again.  The employment report is due out tomorrow and that should be the near term driver of prices.  RUT has stalled recently so perhaps we'll get a pause in the rally soon.  But the truth is the market will go where it wants.  This overbought rally is a good example of that.  I'll have to stay on the sidelines for now as the recent string of losses has got my confidence to a low level.  A short pot here today as I'm not feeling well either.  Europe and Asia were both generally higher last night.  We'll close out the week tomorrow. 

A little bit higher today as the Dow added 20 points on light volume.  The advance/declines were barely negative.  The summation index continues higher.  The rally lives on as we remain overbought and continue to stay that way.  We are still way overdue for at least some profit taking but there is no overhead resistance.  The shorts continue to get squeezed and that includes me.  My SPY October call position is showing a loss.  I'll probably get stopped out of this as well but it's my last attempt at this trade.  The small losses begin to add up.  GE dropped 1/3on average volume.  Gold was up a couple bucks on the futures and the US dollar was a touch lower.  The XAU and GDX had slight fractional gains on light volume.  Mentally I'm feeling OK.  It has been a pretty nice move higher and there is no end in sight right now.  The VIX remains under 10.  There are no sellers.  Even the slightest daily decline has been bought.  The RUT continues to lead the way higher although it was down very slightly today.  Tomorrow should be a waiting game on the jobs report due Friday.  I really don't see anything to stop the trend higher.  My strategy to move up on the put strike prices was a failure.  I actually could not have picked a worse time to do that.  The market can remain overbought longer than you can remain solvent.  Live and learn.  I still think that this is a blow off top if you just look at the straight line up in RUT since the middle of August.  It usually doesn't end well.  We'll see what happens this time.  Asia was higher and Europe mixed yesterday.  We'll keep an eye on the overnight developments.

The juggernaut rolls on as the Dow gained 84 points on light volume.  The advance/declines were positive.  The summation index continues higher.  It sounds like a broken record but there is nothing stopping this market at the moment.  I was stopped out of my SPY put trade again for another 30% loss and I rolled into the next strike price again.  The 30% loss is getting to be like a broken record as well.  This is the classic example of where a market can stay more overbought than a trader can remain solvent.  Not a lot of money involved here but the losses are starting to pile up.  My fear is that the moment I abandon this idea is when we will start to drop.  However we are so stretched right here that if this trade doesn't work now I'll be throwing in the towel.  Perhaps the jobs number on Friday will be a downside catalyst.  That's more of a hope than anything else.  GE was up 1/4 on average volume.  It looks like GE has plenty of room to go higher here and perhaps the bottom has been put in.  Gold and the US dollar finished little changed.  The XAU was up about a point and GDX rose 1/4.  Volume was light.  Mentally I'm feeling OK.  We are way overextended in the major stock averages and a sell signal is in place.  However we just keep climbing higher.  It's quite a blow off and probably has more room to go at this rate.  My strategy to keep moving up the strike price for the SPY puts here is wrong.  Hence, today is the last day that I'll try it.  There really is no telling how high this thing will go before falling back to earth.  I do believe though, that when we start to drop it will be on the same trajectory as the rise.  That is usually how it goes.  But when we actually fall is unknown.  Europe and Asia were both higher as we have a worldwide rally taking place.  We'll see what tomorrow brings.

The Dow soared today and finished up by 152 points on light volume.  the advance/declines were almost 2 to 1 positive.  the summation index is moving up.  I was stopped out of my SPY October put position for around a 30 % loss.  I once again moved to the next strike price and this position is showing a loss.  This will probably be my last attempt at this idea because it hasn't worked yet.  What we are seeing here is most likely the blow off top that happens every once in a while.  Where it ends is just a guess and that is what my problems is here.  Overbought, staying that way and no sign of slowing down to the upside.  There is no overhead resistance.  The small losses that I'm taking don't make up for the fact that I probably should not even be trying these trades.  However when the market turns down after one of these straight up moves, it usually comes straight back down.  GE came back to life and was up over 1/3 on good volume.  Gold was slightly lower on the futures as the US dollar finished the day little changed.  The XAU and GDX had slight fractional moves on average volume.  mentally I'm feeling tired as I did not sleep well.  The month has started with a bang for the bulls as the rally just keeps on going.  The RUT remains strong and that is a plus.  However the stock indices are even more overbought that usual here and some kind of pause is past due.  I don't know what the catalyst will be for some downside but it will show up sooner or later.  My stubbornness in continuing to try the SPY puts has cost me some money here.  However when there's a definite sell signal in place, you've got to give it a shot.  The negative divergence on the weekly SPY chart is still place as well.  So we'll see if this SPY trade works out.  Not looking good now.  Europe and Asia were mostly higher overnight but not as much as the Dow.  We'll see what tomorrow brings.