Moving lower today as the Dow fell 40 points on average volume. The advance/declines were slightly positive. The summation index is trending higher but not with any gusto. The NASDAQ and the S&P 500 had slight losses as well to end the month of August. I did try the SPY September put trade again but wasn't filled. I've adjusted the order and I'm leaving it out there. I'm expecting some positive money flows to begin September tomorrow, so perhaps this order will get filled. The S&P remains short term overbought. Gold was up $4 on the futures. Interest rates rose slightly, while the US dollar was little changed but did come up from the lows of the session. The XAU added 1 7/8, while GDX was back up 3/8. Volume was average. Volume is now favoring the advances for the gold shares and that is bullish. I did cancel my open order for the GDX October calls. GDX is approaching short term overbought and I will have to wait until it gets back to oversold before trying this idea again. It appears that I've missed whatever move higher we've seen for the gold shares lately. Mentally I'm feeling OK. The VIX was up slightly today but it remains short term oversold. I'm not getting a good feel for what the VIX is implying here but it does remain below its 50 day moving average. August was another good month for stock that have basically gone straight up since The lows seen at the conronavirus outbreak. This certainly cannot go on forever and the end will not be pretty. Try to keep that in mind. That said, the market goes where it wants and can remain overbought for longer than anybody thinks. The easy money from the Fed continues. We'll see how September gets going tomorrow. Asia higher and Europe lower in last nights trade. We'll see how things go tomorrow.

A mixed bag today as the Dow fell 56 points on light volume. The advance/declines were slightly negative. The summation index is still trending up but not with a lot of conviction. The NASDAQ and the S&P 500 both set new all time highs today, with the NASDAQ leading the way. I did place an order overnight for the SPY September puts but it wasn't filled. I might try this again tomorrow. The S&P remains short term overbought and the breadth today was not a plus. I'll go over things again tonight and then decide. Gold fell seven bucks on the futures. Rates were lower and the US dollar finished little changed. The XAU lost 2/14, while GDX shed 3/8. Volume was light. My open order for the GDX October calls is still out there. Mentally I'm feeling a bit tired. The VIX was a bit lower today and remains short term oversold but not extremely so. It appears to be implying higher prices to come. We've got the end of the month coming up tomorrow. I'm not sure how that will skew prices. Plenty of economic data due out this week, with the employment report on Friday very likely the most watched. But it is also the final week of summer so not all of the players have returned. Perhaps patience is the best plan for now. Europe and Asia were higher overnight. We'll keep an eye on tonights headlines.

A broad move higher today as the Dow gained 242 points on light volume. The advance/declines were almost 5 to 1 positive. The summation index is back to trying to move up. The Fed tone at the Jackson Hole summit was mild and the market took off to the upside. The NASDAQ led the way and arrives at a new all time high. Ditto for the S&P 500. It remains short term overbought. My SPY September put trade went from a winner to a loser overnight. I decided to simply sell out and take the loss rather than hold on at this point. It was a 25% loser. I still don't trust this light volume move higher and may try this idea again a a different strike price next week. Or I may wait until after Labor Day when all the players have returned. Gold liked what it heard today as well with the futures gaining $25. Interest rates moved lower as did the US dollar. The XAU was up 5 1/3, while GDX gained 1 1/8. Volume was heavy which implies that this move higher in the gold shares is for real. My open order for the GDX October calls is still out there but it will not get filled after todays strong advance. I'll probably cancel it on Monday. It's looking like a missed opportunity for the gold share calls here. Mentally I'm feeling OK. The VIX had a strong move lower which fits with the rally we saw in stocks today. Yesterdays move up in the VIX now looks like a head fake. The S&P continues to hug its upper Bollinger band. I'm not sure how long that can last. I'll be going over the charts as usual this weekend to try and figure out what to do from here. Perhaps stepping aside for a week is the prudent game plan. We'll see. Europe was higher and Asia mixed overnight. It's Friday afternoon and time for a break.

Some selling today as the Dow fell 192 points on light volume. The advance/declines were around 3 to 1 negative. The summation index is back to moving sideways. The S&P 500 is still overbought and the indicators have now rolled over. I'm not exactly sure if this is the beginning of an actual decline but there is a potential negative divergence on the daily RSI. My SPY September puts are showing a small profit. We'll see if we get any follow through downside market action tomorrow. Gold was up a couple bucks and the US dollar was slightly higher as well. Interest rates were little changed. The XAU and GDX had fractional losses on light volume. My open order for the GDX October calls remains out there. Mentally I'm feeling OK. The VIX was higher today and the short term indicators have turned back up. It does remain below the 20 level though. Tomorrow could be important here because if the market does sell off again, the VIX could get above 20 and imply more volatility. That would be fine with me since I'm already in the SPY put trade. However things could just as easily turn the other way, with the VIX moving lower and stock prices moving up again. The reaction to what comes out of the virtual Jackson Hole summit will be the market mover in my mind for tomorrow. It will be interesting to say the least. There's also some inflation data due out. Europe and Asia were lower overngiht. We'll close out the trading week tomorrow.

The drift higher continues as the Dow gained 39 points on light volume. The advance/declines were positive. The summation index has turned around and is now moving up. I went ahead and adjusted my order for the SPY September puts and it was filled. It is showing a slight loss. Short term overbought on some of the technical indicators for the S&P. I'm not exactly sure this trade will work since the market can stay overbought for extended periods of time. The S&P 500 also set a new all time high today and there is no overhead resistance. But I did feel like taking the chance here ahead of the Jackson Hole virtual gab fest and some inflation data due out on Friday. The light volume on this move higher is not a positive in my mind as well. I plan on holding this position for a while unless we get a blow off to the upside from here. Gold fell eight bucks on the futures. Interest rates rose again and the US dollar was just a touch lower. The XAU lost 2 1/8, while GDX shed 3/8. Volume was average. I still have the open order out there for the GDX October calls although I am thinking about canceling it. It is looking more like Mondays positive price action was a dead cat bounce. Mentally I'm feeling OK. The VIX was lower today and that fits with the rise in stocks. Not completely oversold on the indicators here, so the market has the potential to just keep going up. Of course that would ruin the SPY put trade that I just entered but you have to be aware of all the possible scenarios. So the trade is on and we'll see where it goes from here. Europe and Asia finished mixed. We'll see what tomorrow brings.

A bit higher today as the Dow was up 30 points on light volume. The advance/declines were 2 to 1 positive. The summation index is in the process of moving back up. The market had better gains during the day but sold off in the final half hour. Once again the overall market was stronger than the Dow with the NASDAQ leading the way. My open order for the SPY September puts remains out there. We are getting to short term overbought for the S&P. I might just get the puts tomorrow because I'd like to own them ahead of the Feds Jackson Hole summit. Premiums remain high though and there's a chance we just continue on higher from here as well. There is no overhead resistance. Gold finished little changed on the day as did the US dollar. Interest rates were higher. The XAU was up 1/2, while GDX finished unchanged. Volume was light. GDX remains short term oversold implying that there's more room to go to the upside near term. I'm leaving my order for the GDX October calls out there but it will take a decline of a point or so to see it get filled. I'm not in a hurry on this idea unlike the SPY puts. Mentally I'm feeling OK. The VIX was little changed today and remains below its 50 day moving average. We are nearing the end of summer and there's also a possibility that things slow down before the beginning of September as players take their final summer flings. The Fed chairman will speak at the Jackson Hole meeting virtually on Friday but we can only guess at what will be said there. My thinking right now is to get short any strength tomorrow even if the premiums cost more than I'd like to pay. I guess I'm still a believer in a decent decline for the September option cycle. Asia was higher and Europe mixed in last nights trade. We'll keep an eye on the overnight developments.

Quite a rally to begin the trading week as the Dow gained 215 points on light volume. The advance/declines were a bit better than 2 to 1 positive. The summation index is now trying to turn back up. The overall market was much stronger than the Dow with the NASDAQ leading the way. It closed at a new all time high. The S&P 500 had a new intra-day high. The short term technical indicators there are now moving up. My prognosis for an extended decline to begin here appears to be wrong. I did place an order for the SPY September puts but it wasn't filled. I've left it out there but will reconsider what to do overnight. The bounce back form last weeks decline is certainly more than I though it would be. But the volume is pretty light and I never trust light volume rallies. Gold was up today as well as the futures rose over twenty bucks. The US dollar was lower and interest rates were steady. The XAU climbed 5 1/2, while GDX was up 1 1/4. Volume was good to the upside. Perhaps the rally here for the gold shares has started. My open order for the GDX October calls wasn't filled and remains out there as well. GDX remains short term oversold despite todays nice gain. The train could be leaving the station for the gold shares right now. We'll see. Mentally I'm feeling OK. The VIX was lower and closed below its 50 day moving average. Not completely oversold here yet. Ther question for the market now is, was that it for the decline? Is it now off to the races with the NASDAQ leading the way? I've got to say that it really seems like that may be the case. The major stock indices have turned around quickly and are not yet overbought. The NASDAQ has pierced its upper Bollinger band but that doesn't mean it can't go higher. I'll have to go over the charts again tonight and try to figure out what to do. Europe and Asia were higher overnight. We'll see if we get any upside follow through on Tuesday.

Bouncing back to close out the week as the Dow gained 226 points on light volume. The advance/declines were better than 2 to 1 positive. The summation index is still heading down. An oversold bounce or the beginning of a new leg up to all time highs? I'm going with the former for now as I do believe a long awaited decline in stocks has begun. The short term technical indicators have turned back up for the S&P though. I'm looking at the SPY September puts and will most likely be getting some next week. Could I be wrong here? Of course but we'll have to see how things pan out as we move forward. Gold was off a couple bucks on the futures. Interest rates were basically unchanged while the US dollar was bit lower. The XAU and GDX had fractional moves one way or the other on light volume. My open order for the GDX October calls remains out there. GDX remains both short and medium term oversold. It is at its lower Bollinger band on both the daily and weekly basis. Mentally I'm feeling tired. The VIX had a steep drop today and is back below the important level of 20. The short term indicators here have rolled over as well. The VIX seems to be saying that the decline is over but that is just my interpretation of the indicator. Markets go where they want. I'll be keeping an eye on the VIX as usual. The McClellan oscillator reached a very oversold reading yesterday so the price action today wasn't something unexpected. If the oscillator simply continues to go up from here and gets back into positive territory, my negative thesis of what's about to take place will be wrong. This is another indicator that we'll be keeping a close eye on. We're rolling into the September options cycle and it has the usual four week duration. We'll see what type of opportunities await. Asia lower and Europe higher to close out the week. We'll check the charts over the weekend and come up with next weeks game plan. For now it's Friday afternoon and time for a rest.

The Dow continued lower today as it lost 66 points on about average volume. The advance/declines were better than 2 to 1 negative. The summation index is moving lower. The NASDAQ along with the S&P 500 posted small gains today. I'll be looking for some kind of bounce in the coming days and that should be the opportunity to get some of the SPY September puts. We've got the August option expiration tomorrow so we'll have to see how that goes. The short term technical indicators or the S&P have moved into oversold territory. Not completely oversold but in an area that has held the declines in place before. We also touched the lower Bollinger band today for the S&P. So perhaps the decline is done for now but I do expect it to resume shortly. Gold lost $7 today and the US dollar continued its climb. Interest rates were lower. The XAU dropped 2 3/4, while GDX fell 1/2. Volume was average. GDX has made it to the 31 support level but I don't think it will hold at this rate. The gold shares have been very weak lately. I adjusted my open order for the GDX October calls and went out to a lower strike price. Even with doing this, I'm not sure this is a trade that will work out positively at this point. But I will take a chance if it gets filled. GDX is both short and medium term oversold. So the idea and question is if not now, when? Mentally I'm feeling a bit tired, did not sleep well. The VIX almost made it up to the 25 level today and finished with just a small gain as the market came back from the decline at the open. Overbought here now and the short term indicators appear to be starting to roll over. The question is has volatility returned to stay? I think so as I'm looking for much lower stock prices going forward. If the VIX stays above the 20 level we will certainly see more decline in prices. For now we'll let Friday pass and look to but some SPY puts next week on any strength. Europe and Asia were lower as the pullback from stocks is heading around the globe. We'll close out the trading week tomorrow.

Continuing lower as the Dow fell 382 points on light volume. The advance/declines were better than 2 to 1 negative. The summation index is moving lower. The day was a drift for much of the session with the market finally falling apart in the final hour. The short term indicators for the S&P 500 are now moving lower. I think that we have seen the highs in this index for now. I'm not sure how low we're going but rallies can be shorted from here on out in my opinion. I did not get any SPY August puts this morning or afternoon as the little time remaining in the August contract kept me out. I've started to look at the SPY September puts but they've already started moving and the premiums are elevated. That should be the next trade though as I believe that the top is in now for the medium term. We'll hope to see some type of snap back up in the coming sessions. Gold was off a few bucks on the futures. Both interest rates and the US dollar finished little changed. The XAU fell 3 1/2, while GDX shed 3/4. Volume was good to the downside. My order for the GDX October calls is still out there. Another day like today should get it filled. Oversold and staying that way for the gold shares. GDX is half a point away from the 31 support level. I may have to adjust this trade because if the market continues to drop as I think it may, it will take the gold shares along with it. Mentally I'm feeling OK. The VIX popped up with todays drop above the important 20 level and its 200 day moving average. It is not completely overbought yet but is almost there. More market decline tomorrow would do it. What I'll have to be here is patient to wait for some type of counter trend move back up in stocks in order to purchase the SPY September puts. There's no guarantee such a move will occur but it is too late to chase things here. Once again it looks like the idea is correct here, we must now try and take advantage of it. Hopefully things don't just fall apart from here but they could. Asia was higher and Europe mixed in last nights trade. We'll see how things go tomorrow.

Selling was the order of the day as the Dow fell 282 points on light volume. The advance/declines were around 3 to 1 negative. The summation index is now moving lower. The Dow was off 500 at one point so a comeback was made. I did place an overnight order for the SPY August puts but it wasn't filled. So this idea for a trade was most likely missed. I do think we will be heading lower as time goes on but there's only three days left now in the August option cycle. I am looking at the SPY September puts but the premiums are pretty high with so much time left there. I can make a case for trying something tomorrow but I'll have to wait and see what the market does early before deciding if the risk is worth the effort. On the plus side at least my thinking was headed in the right direction. Gold was up three bucks on the December contract. Interest rates were flat but the US dollar had a good gain. The XAU lost two points, while GDX dropped over 1/3 on average volume. The gold shares followed the overall market lower. Still short and medium term oversold for GDX. I did place an order here for the GDX October calls and I'm leaving it out there. If GDX drops to the 31 level the order will probably get filled. I also may cancel it before then if the stock market really starts to fall apart. Mentally I'm feeling OK. The VIX popped up today and fell back from its upper Bollinger band. The short term technical indicators here have turned to the upside. The VIX closed back above its 50 day moving average. No clear signal being given here now in my mind. I do think that the SPY August put trade has been missed but we'll wait and see what happens tomorrow. If we do rally early on I may try it again. Plenty to ponder overnight. Asia was down and Europe generally lower. We'll keep an eye on the overnight headlines.

We had quite a one day upside reversal today as the Dow opened lower and turned around to finish with a gain of 110 points on light volume. The advance/declines were shy of 2 to 1 negative. The summation index is back to a sideways configuration. Geopolitcal turmoil in Afganistan affected the open but buyers stepped in and squeezed those who got short. The NASDAQ did finish in the red though. Four days to go in the August option cycle and I'm still considering the SPY puts here. The S&P remains short term overbought. I'll possibly purchase the puts tomorrow after I go over the charts tonight. It's a risky proposition to be sure but perhaps my patience to do this trade will pay off. Gold was up ten bucks and the US dollar was a bit higher as well. Flight to safety on the fall of Afganistan? Interest rates were lower. The XAU lost 1 1/4, while GDX shed over 1/8. Volume was light. Gold up and the gold shares down is not a recipe for bullish success. WE are still short term oversold on the gold shares. Mentally I'm feeling a bit tired. The VIX jumped higher despite the gain in the Dow. That will happen with a big drop to start the day. The VIX does remain short term oversold. The Dow was almost 300 points down early in the morning. That kind of comeback cannot be ignored. We'll see if we get any follow through tomorrow. Could this be the beginning of an upside blow off for stocks? Of course I've already asked that question at least a half a dozen times already this year. Europe and Asia were down to begin the week. We'll see what tomorrow brings.

The grind higher continues as the Dow rose 15 points on very light volume. The advance/declines were slightly negative. The summation index is moving higher as well and it looks like a grind too. It isn't the usual gapping higher movement that we're used to seeing here. That could be a warning that the rally isn't all that strong. And it isn't. Weak breadth and volume are the norm for this particular rise. We are setting new all time highs for the Dow and the S&P 500. But the environment is lackluster summer trading with many players absent. If we continue higher into Tuesday, I'm probably going to try the SPY August puts for a short term trade. But with only a week left in the August options, the risk is pretty high. I am also looking at the SPY September puts. Gold rallied on a weak consumer confindence report and the futures gained over $25. The US dollar was lower along with interest rates. So for today at least things were in golds favor. The XAU added 2 1/4, while GDX was up 2/3. Volume was light. GDX is still oversold and I'd still like to wait to see if it can get back to the 31 level. Plenty of bears for gold right now and that is a good contrary indication that the September or October calls for GDX may work. Mentally I'm feeling OK. The VIX was lower today, remains oversold and is down to around its lowest level this year. To me, this is setting up for the index puts to work. The only question is when and I think sooner rather than later. But with the current lack of trading participants, the current conditions are not ideal. I do not want to force things here so I may just hang out on the sidelines until before the next Fed get together in Jackson Hole on the 26th. We'll see. Asia was mixed and Europe higher to finish the week. I'll be going over the charts as usual this weekend. It's Friday afternoon and time for a break.

An interesting session today as the Dow was down for much of the time but managed to finish in the black. It ended up 15 points on very light volume. The advance/declines were negative. The summation index has turned back up but it is barely gaining steam. The overall market was much stronger than the Dow. Another new all time high for the S&P 500 as it continues to remain short term overbought. I did place another order for the SPY August puts but it wasn't filled. Not that I'm in love with this idea but I have to expect some kind of weakness before option expiration. However there is no overhead resistance and the market today shrugged off a better than expected inflation report. So perhaps I'll just remain on the sidelines until we roll into the September option contract. Gold finished slightly higher as did the US dollar. Interest rates continued their climb. The XAU lost 2 1/3 and GDX shed 1/2. Volume was lighter. GDX is a point away from the 31 level and I'll probably get some of the GDX October calls if an when it hits that level. October is a long way out but at least that will give this idea some time to work out. GDX remains short and medium term oversold. Mentally I'm feeling a bit tired. The VIX is still moving lower and remains oversold. The VIX below its 50 day moving average has implied higher stock prices and the market is cooperating for now. The VIX can remain oversold for weeks but I have to believe that we'll see some type of corrective action for the stock market soon. Soon meaning the September option cycle. Patience for now but I might put in another August SPY put order tomorrow. Asia generally lower and Europe generally higher last night. Summertime Friday on tap to close out the trading week.

Inflation data came in where expected and the Dow rallied 220 points on light volume. The advance/declines were 2 to 1 positive. Once again the summation index is trying to turn back up. The S&P 500 sported a gain but the NASDAQ was in the red again. The Dow leading the way is usually a late stage of the rally affair. I suppose that I was lucky none of my SPY August puts tickets got filled. I still might try this idea because the S&P cannot stay short term overbought forever. However I may have to be patient and wait for the September option cycle. Risk increases in the August cycle as the days begin to dwindle. Light volume is a product of the summer but cannot be trusted nonetheless. Gold rallied as inflation didn't go above estimates. The December futures were up over twenty bucks. Interest rates finished little changed while the US dollar was lower. The XAU was up 3 1/4, with GDX gaining 2/3. Volume was good. The gold shares hit short term oversold and have begun to bounce. I'm not sold on the idea that this will be a long rally since the fundamental picture for gold at the moment is negative in my mind. GDX is oversold both short and medium term however but I'd rather wait and see if it can get down to 31. That's the game plan here for now. Mentally I'm feeling OK. The VIX was lower, remains short term oversold and below its 50 day moving average. It implies more rally to come for stocks. Perhaps things will simply run up into the August expiration. That would set up the SPY September puts. All wishful thinking on my part. But I really think we're overdue for some type of extended move down. Seasonality favors such a move as well. However the grind higher continues. Europe and Asia were generally higher overnight. We'll watch the reaction to tomorrows inflation data and go from there.

Another mixed bag as the Dow gained 162 points on light volume. The advance/declines were slightly positive. The summation index is moving sideways. The NASDAQ posted a loss today while the S&P 500 had a small gain. The S&P remains short term overbought. I did place an order for the SPY August puts, modified it several times and never did get filled. I might try this idea tomorrow if we get a rally on the inflation data but I'm not really looking for that to happen. The market is slow and churning here. Running out of time in the August option cycle with only 8 days to go. Gold dropped a couple bucks on the December contract. Interest rates continued to move higher along with the US dollar. The XAU and GDX had fractional losses on average volume. GDX is now short term oversold but I'm in no hurry until it gets to the 31 level which is a point away. Even then is just might continue to go lower but that's the spot that I'll take a serious look at the October calls there. Mentally I'm feeling a bit frustrated since I did want to have a put position ahead of the inflation reports. But it doesn't matter now. There's also a part of me that says wait until the players return after summer break. The VIX was just slightly higher today and remains oversold on a short term basis. I suppose we'll just wait and see now how the market reacts to tomorrows data. Europe and Asia were higher overnight. We'll keep an eye on tonights headlines.

It felt like an summer Monday and that's how we traded as the Dow fell 107 points on pretty light volume. The advance/declines were negative. The summation index is in a sideways trend. The NASDAQ managed to post a small gain. The S&P 500 was slightly lower and remains short term overbought. I did place an order for some SPY August puts but wasn't filled. I may try again tomorrow ahead of Wednesdays and Thursdays inflation reports. However there's also a chance that we simply remain range bound here with no big movement to make trading the options worthwhile. But that's just an observation or more likely a guess, nobody can predict the future. Technically the S&P is overbought, staying that way and there's not a lot of volume. Gold continued lower as it sold off in the overseas markets overnight. The futures finished with a loss of over thirty bucks. Gold traded below $1700 for a time overnight. Interest rates continued higher as did the US dollar. The XAU fell 3 3/4, while GDX dropped 3/4. Volume was good to the downside once again. I'm now looking at the October GDX calls for the next gold share trade. But there is no rush as the 50 day moving average has just crossed the 200 day for GDX to the downside. I'm going to try and wait for the 31 level before attempting something here. Mentally I'm feeling a bit tired. The VIX was higher today as the market did have a sharp drop after it opened. It remains oversold. I suppose I'll hope for some buying in the market tomorrow in order to get a decent fill on the SPY August puts ahead of Wednesday. I'm pretty sure that it is a trade that I'd like to do. We'll see how it goes. Asia was higher and Europe mixed with very little change on the closing indices. Perhaps things will pick up on Tuesday but I wouldn't be surprised if it's just more of the same summer slumber.

Unemployment numbers came in strong but we had a mixed market as the Dow gained 144 points on light volume. The advance/declines were positive. The summation index is trying to turn back up again but remains in a sideways channel. The overall market was weaker than the Dow, with the NASDAQ in the red. The S&P 500 closed at another new all time high and remains short term overbought. I'm thinking that if we stay higher on Monday or Tuesday, I'm going to try the SPY August puts. That's what I've got in mind right now but I'll look things over again on the weekend. I'm also considering just staying on the sidelines because the volume is pretty light and many players just aren't at their desks. The S&P is pretty much going sideways lately as well. Gold got crushed today as the futures fell over forty bucks to the near term support. The US dollar was higher on the jobs report. Interest rates jumped up on the strong employment numbers. The XAU fell 3 points, while GDX dropped a point. Volume was good to the downside although the price drop in the gold shares could have been worse. GDX is also at its near term support but at this rate it isn't going to hold. If it drops to the 31 level, that may be the time to try the September calls. I'm certainly glad that I remained patient with that idea for now. Mentally I'm feeling OK. The VIX was lower and broke below its 50 day moving average. This implies some more rally for stocks. Short term oversold and staying that way for the VIX. This is another reason to be patient for the SPY puts and maybe just forget about them in this option cycle. But we'll see. I'll go over the scenarios again this weekend and take it from there. Europe and Asia were higher to finish the first week of August. It's Friday afternoon and time for a break.

Today it was back to the upside as the Dow gained 271 points on light volume. The advance/declines were around 2 to 1 positive. The summation index, like the stock market, can't make up its mind which way to go. It remains in a sideways trend. With such a nice gain in the stock market today, my thinking is that we'll move even higher tomorrow on the jobs report. That's my guess at the moment. The S&P 500 closed at another new all time high. It remains short term overbought. If we do trend higher into early next week, I may try the SPY August puts. However if the breakout from the recent sideways consolidation takes off we could see an upside blow off. I will try and let the market tell us what to do. Gold dropped around eight bucks on the December contract. Interest rates were higher and the US dollar finished little changed. The XAU fell two points while GDX shed 1/2. Volume remains light. The short term indicators for GDX have now rolled over. I'm still looking at the September calls here but will wait for GDX to get oversold before trying any options. Mentally I'm feeling OK. The VIX was lower today and closed at the 50 day moving average. Another day like today and it will make it back below there. It did close below the mid Bollinger band. Oversold here to be sure but in uptrends it can stay that way. I think tomorrows price movement in the market will tell us a lot. Still trying to remain patient for now. Asia was mixed and Europe generally higher overnight. All eyes and ears on the employment report tomorrow morning.

Back to the downside today as the Dow lost 323 points on average volume. The advance/declines were 2 to 1 negative. The summation index is starting to roll over. The Dow was the under performer today as the NASDAQ posted a small gain. The S&P was lower today as it could not build on yesterdays gains. It remains short term overbought on some of the technical indicators. I still favor the SPY August puts but really don't want to purchase them until after the employment report on Friday. The TRAN was pretty weak today as well so it looks like perhaps the market is ready to take a dip in the summer. But we all know that the market will go where it wants. Gold was up a couple bucks today as interest rates finished mixed. The US dollar was slightly higher. The XAU was off around 1 1/2, while GDX shed 1/3. Volume is still light here. The gold shares followed the market lower today. This is why I prefer to wait to get some of the GDX September calls. If the market goes into a summer swoon here, most likely the gold shares will follow. Mentally I'm feeling OK. The VIX was just a bit lower today and that doesn't fit with a down 300 market. Not sure what to make of it. Still above the 50 day moving average here. Only a couple of trading days left this week with Friday most likely being the most important. Obviously the market reaction to the numbers is what we'll be watching. Still trying my best to remain patient here. Asia was mixed and Europe higher overnight. We'll see what tomorrow brings.

We got an earnings rally today as the Dow climbed 278 points on light volume. The advance/declines were positive. The summation index is still tracking sideways but is trying to turn back up. The market has the feel of wanting to go higher in the near term and I'm not going to stand in the way. The S&P 500 closed at a new all time high today. The other major indices are close to new highs as well. Perhaps this will usher in a blow off top that I've been looking to happen for what seems like months now. I'm still tracking the SPY August puts but purchasing them would be days away or early next week. The SPY remains short term overbought. The recent sideways movement here appears to be a consolidation with higher prices now coming. Of course that could all change tomorrow but I don't think it will. Gold was off a few bucks today. The US dollar along with interest rates finished little changed. The XAU rose 1 1/3, while GDX added 1/3. Volume remains light. The gold shares continue to outperform and that is a plus. The problem for me here is that some of the short term technical indicators for GDX are already overbought. I really do not want to chase this move now. However I cannot deny the gold share strength and what it implies going forward. Never easy in this game. Mentally I'm feeling OK. The VIX was lower today and that fits with todays rally. It remains above the 50 day moving average. Oversold on the short term indicators here but not completely so. A break below the 50 day would really encourage the bulls in my view. I'm remaining patient for now since there is still plenty of time left in the August option cycle. We also have the jobs report to get through on Friday. Europe and Asia finished mixed. We'll see if we get any follow through upside tomorrow.

Lower to begin the month of August and the week as the Dow fell 97 points on light volume. The advance/declines were slightly negative. The summation index is moving sideways. It was a one day reversal to the downside as we opened with a gap to the upside only to lose ground for the rest of the session. The short term technical indicators for the S&P 500 are starting to roll over. The NASDAQ finished in the black though. I'm still considering the SPY August puts if we see some upside before Fridays jobs report. I'm hoping that the market holds up until then. GE has now completed its reverse stock split. I won't be reporting on it anymore after an 8 for 1 reverse split. Gold finished the day about unchanged despite a drop in interest rates. The US dollar was slightly lower. The XAU was off 1 2/3, while GDX shed 1/8. Volume was pretty light. Some of the short term indicators for GDX are overbought. I'm trying to remain patient here when it comes to purchasing the September calls. Mentally I'm feeling OK. The VIX was up today and remains above its 50 day moving average. The mid-range Bollinger band is also providing support and if that continues a decent rise in the VIX could be coming soon. That would imply lower stock prices. I am hoping for one more run up in stocks in order to purchase some August puts but we know that the market rarely cooperates with the best laid plans. Europe and Asia were higher to begin the week. We'll keep an eye on the overnight developments.