Powering ahead to new all time highs in many of the major stock indices. The Dow gained 238 points to close above the 35000 level for the first time. The advance/declines were positive and volume was average. Monday is all but forgotten and clearly in the rear view mirror. I will have to rethink my bearish posture over the weekend as I did not expect the market to simply turn around and press on to new all time highs. The S&P 500 is now short term overbought but there is no overhead resistance. The NASDAQ remains a leader and that's a positive. Perhaps this will usher in the blow off top that I've mentioned before. Earnings are driving things at the moment and so far they've been better than expected for the most part. GE was flat and the volume was light. Gold was off five bucks or so on the futures. Interest rates were slightly higher and the US dollar finished the day little changed. The XAU fell almost a point, while GDX shed 1/4. Volume was pretty light. No love for the gold shares as they remain oversold. I am still looking at the September GDX calls there. Mentally I'm feeling a bit tired. The VIX was lower as it is moving towards short term oversold. It is now midway between the Bollinger bands. The VIX remains below 20 and appears to be headed back down to the 15 level. Plenty of work to do this weekend as I try and figure out my next trade. This weeks reversal in stocks cannot be ignored. Certainly we haven't seen the usual summer slowdown. There's still plenty of time in the August option cycle. Hopefully I'll come up with a profitable idea. Asia was higher with the exception of the Hang Seng. Europe was up as well. It's Friday afternoon and time for a break.