Back to the downside today as the Dow fell 652 points on extremely heavy volume. The advance/declines were around 4 to 1 negative. The summation index is moving lower. Losses all around as everything is being sold. The easy money Fed policies are coming to an end but the decline will be blamed on the new virus varient. Short term oversold now for the S&P but I don't expect any long lasting rally to take hold. We've seen the highs for the year. Support could come in around the 50 day moving average at 4535 for the S&P 500. It may or may not hold as we are in a selling mode on wall street for now. Gold dropped on the hawkish Fed comments today as the futures fell over ten bucks and below the near term support at $1780. The US dollar was a bit lower while interest rates remained steady. The XAU fell 1 1/8, while GDX lost 1/3. Volume was good to the downside. My GDX January calls are now showing a loss. The gold shares had a downside reversal today as they opened strong and then fell apart. Not a good sign for the precious metal bulls. We'll see how it goes tomorrow. Mentally I'm feeling OK. The VIX spiked back up today and the signals that I've been seeing here lately have been wrong. As long as the VIX remains above the 20 level, volatility will be on the increase both positive and negative. That much we can be sure of. We'll take our cues from the summation index and as long as it's moving lower the trend for stocks will be down. We'll get the beginning of a new month tomorrow and that usually means new money flows. But that may not mean anything the way things are headed at the moment. Europe and Asia were lower overnight. Perhaps the heavy volume today was a washout to the downside and we'll see some kind of bounce tomorrow. That's just a guess as usual. Things are getting interesting though. We'll keep an eye on tonights developments.

Buyers were out in full force today as the Dow gained 236 points on average volume. The advance/declines were positive. The summation index is still heading lower. Fears of the new virus mutation faded as not much is actually known about where this disease is headed. The overall market was much stronger than the Dow with the NASDAQ leading the way. The short term technical indicators for the S&P 500 are turning back up. One day doesn't make a rally but at least the selling took a break for now. We've got the end of the month tomorrow. Employment numbers due out on Friday. Gold was flat on the futures. The US dollar was slightly higher along with interest rates. The XAU and GDX had slight fractional moves one way or the other on light volume. GDX is holding its 50 day moving average and is short term oversold. A bounce is due. My GDX January calls are showing a small loss. Mentally I'm feeling OK. The VIX collapsed but remains above the 20 level. The short term indicators here have rolled over. This implies higher stock prices going forward. However we got the same read from the indicators right before Fridays collapse. As long as the VIX stays above 20, volatility should increase. The market is now also at a heightened level of response to headline risk due to the uncertainty of the latest virus varient. Nimble trading is required. If we do happen to get back to short term overbought in the SPY I will try the SPY December puts. Plenty of time to go in the December option cycle. Europe higher and Asia lower to begin the week. We'll keep an eye on the overnight headlines.

Stock markets around the world collapsed as a new strain of the corona virus hit the news wires. The Dow dropped 905 points on half day heavy volume. The advance/declines were better than 5 to 1 negative. The summation index is heading down. What was supposed to be a quiet light day of trading during the holiday was anything but that. I cannot remember the Friday after Thanksgiving being anything like today. But as always the market goes where it wants. Most everything was being sold as I'm sure margin calls went out. The S&P 500, like most of the major averages, had a gap lower to start the day. The short term technical indicators here are not yet oversold. So there's probably more selling to come. Throw in a tighter Fed stance and the party could be over for stocks. It is too soon to tell though. Gold rallied early on but it got sold as well. The futures finished slightly higher. The US dollar sold off as interest rates tanked on a flight to bonds. The XAU fell 2 1/4, while GDX dropped 1/3. Volume was good for a half days trade. Somehow the GDX January calls that I own stayed about the same despite the drop. Looks like some volatility premium was priced in. GDX has now broken its short term up trend line but did manage to close above the 50 day moving average. Perhaps I'm just looking for positives in a negative situation. The short term indicators here are oversold but not completely. Mentally I'm feeling OK. The VIX spiked much higher in a complete reversal of what yesterdays action said. It is now far above the 20 level and implies more volatility to come. Monday morning as well as next week should be pretty interesting. Was today an overreaction? Time will tell on that. The market doesn't like unknowns and that is what this new virus strain represents. We'll stick to the technicals which have now rolled over and are not yet completely oversold. Plenty to think about this weekend with 3 weeks left in the December option cycle. Europe and Asia got clobbered to end the week. It's Friday and time for some rest.

The Dow fell 9 points today on pre-holiday listless trading. The advance/declines were positive and the volume was light. The summation index continues lower. Some of the major stock indices had one day reversals to the upside including the S&P 500. The economic data went both ways today but many players decided to take the day off. More of the same for holiday shortened trading on Friday. Things won't get back to normal until next week. Gold drifted up four bucks today. The US dollar continued higher and interest rates were steady. The XAU and GDX had slight fractonal losses on very light volume. I sold the GDX January calls that I bought on Monday for a 20% loss. I did this in order to purchase the GDX January calls again at a closer to the money strike price, which I did. I was willing to take the small loss in order to get the strike price that I originally wanted. Now I could have held on to both positions but the money out there at risk would have been more than I had allotted to this idea. It still may or may not work but I felt this was the right thing to do today. We'll see going forward. Mentally I'm feeling OK. The VIX was lower today and the short term indicators have rolled over. The VIX is signaling higher prices coming for stocks. Europe and Asia were mixed in last nights trade. Happy Thanksgiving everyone.

We were looking for a decent upside day for the Dow and we got one today as it rose 194 points on average volume. The advance/declines remain negative though. The summation index is moving down. It's been anything but a quiet holiday week so far. We'll get plenty of economic data out tomorrow ahead of Thanksgiving. So I'd expect some more significant price movement before everyone leaves for the week. Friday will be a shortened session for stocks with the major players on the sidelines. The S&P was higher today but the short term indicators are not giving any kind of signal. Not overbought here anymore but not oversold either. Gold conitnued to drop as the futures shed $15 and closed below $1800. The US dollar finished little changed but interest rates continued to rise. The XAU lost over 1 3/4, while GDX dropped 1/2. Volume was average. GDX is still holding the up trend line that began in the beginning of October but is not yet completely oversold on a short term basis. My GDX January calls as shwoing a small loss. The reason to get into this trade has now been invalidated. Holding the trend line is the only way to keep holding this trade. I'm not sure that will happen though. We'll keep an eye on it going forward. Mentally I'm feeling OK. The VIX was up again today but did come off of its best levels. Overbought on the short term technicals here and that implies that we'll see higher stock prices going forward. We'll see if that happens in the coming days. I think the question here and now is has this selling been the beginning of something real to the downside or just anothe blip in the road on the way to more all time highs? Time will tell but I certainly don't have a good feel for the answer at the moment. Some of the major stock indices have now retraced back to their consolidation breakout points. Holding in here would be necessary for the bullish cause. Europe was lower and Asia mixed in last nights trade. We'll see what tomorrow brings.

It was a very volatile session and not what was expected for the beginning of a normally quiet holiday week. The Dow managed to hang on to a gain of 17 points on above average volume. The advance/declines were negative. The summation index is moving lower. Both the NASDAQ along with the S&P 500 had one day reversals to the downside, opening higher and closing lower. The market rallied early on the announcement the Fed chairman had been re-nominated to his position. An hour into the session we then had a sharp selloff. The market climbed its way back and we had decent gains going into the final hour. The market then dropped like a stone to finish the day negative in many of the major averages. I'm not sure what's going on here but clearly there's something brewing. Gold got clobbered on the Fed re-appointment as the futures fell over $40. The US dollar continues its climb and interest rates jumped. The XAU lost 2 1/2, while GDX dropped 2/3. Volume was good to the downside. My open order for the GDX January calls got filled. However it now appears that the inverse head and shoulders breakout on GDX has failed. The short term technical indicators for GDX are at mid-range. Unless GDX somehow holds in here at the 33 level, this trade will be a loser. The only thing this trade has going for it now is time. There is an up trend line at 32 but at this rate that won't hold either. We'll see what happens tomorrow. Mentally I'm feeling OK. The VIX jumped today and closed above both its 50 and 200 day moving averages. The short term indicators here are getting to overbought. Another day of decline would get us there. I expected this week to be benign and quiet with an upside bias. So far it has been anything but that. I'm not sure why. The Dow is overdue for a big upside day. I thought it would be today after this mornings announcement but it looks like the market has other ideas. Stay tuned. Asia and Europe were mixed overnight. We'll keep an eye on tonights developments.

The Dow continues to drop as the most watched index fell 269 points on good volume. The advance/declines were again close to 2 to 1 negative. The summation index is moving down. It was a mixed bag as the NASDAQ along with some other indices were positive on the day. The S&P 500 was lower and remains short term overbought. I'm not sure what to make of what's going on as the Dow is short term oversold. The NASDAQ conitnues to move higher with the summation index moving lower. The market price action is not making sense at the moment. I don't have any solid ideas on where we are going from here. Gold was down $13 on the futures. The US dollar was higher and interest rates were lower. The XAU shed 2 1/2, while GDX lost over 1/2. Volume picked up slightly to the downside. We are just about at the neckline and breakout point on GDX. It needs to hold as we have now seen the pullback that we were hoping for. GDX is almost at 33.50 and that is an important level to try and hold. My open order remains out there but I may have to adjust it again. Worst case scenario is that GDX doesn't hold the 33-33.50 area. If that occurs then the inverse head and shoulders pattern would be negated. For now I'm still a believer in the pattern and would like to own the GDX January calls. Mentally I'm feeling OK. The VIX was higher today but did come off of its worst levels. Not getting a good signal here one way or the other right now. I'm a bit confused as to what's going on in the market with the S&P along with the NASDAQ moving higher and most other averages selling off. With the summation index moving down caution is proper theme for now. Plenty of charts to peruse over the weekend with a shortened holiday week going forward. Plenty to ponder. Europe was lower and Asia mixed to close out the week. It's Friday afternoon and time for a break.

Volatility was the name of the game today as the Dow fell 60 points on average volume. The advance/declines were better than 2 to 1 negative again. The summation index is moving lower. The Dow was once again the laggard as both the NASDAQ and the S&P 500 were positive. The S&P along with the NASDAQ did close at new all time highs. It still remains short term overbought. We are getting kind of a mixed picture here as not all of the indexes are on the same page. Not exactly sure what that means going forward. Gold was off eight bucks on the futures. The US dollar was lower again along with interest rates. The XAU fell two points, while GDX was off 1/3. Volume remains light here. GDX continues to be short term overbought but the indicators have begun to roll over. Mentally I'm feeling OK. The VIX perked up today with the volatility and finished higher despite gains in some of the major indices. The short term technicals here are mid-range. Expiration Friday tomorrow ahead of a holiday week. I'd expect the volume to pick up as players will want to square positions before taking the week off. The summation index is moving lower but we are not seeing a drop in prices. Perhaps we're on the cusp of a move higher for the major averages. That's simply a guess at this point. Europe and Asia were lower overnight. We'll see how expiration Friday turns out tomorrow.

We spent the day on the downside as the Dow lost 210 points on average volume. The advance/declines were around 2 to 1 negative. The summation index is now moving lower. The Dow was the lead underperformer today. No real news to speak of as the S&P 500 stalls in the area of new all time highs. It remains short term overbought. I'm still in the bullish camp here unless the summation index really starts to drop. The NASDAQ is on hold for new highs as well. My thinking is that by the close on Friday theses indices will hit new all time highs. Gold was up almost $15 today as both interest rates and the US dollar dropped. The XAU and GDX had fractional gains on light volume. I adjusted my open order for the GDX January calls. It appears to me now that GDX is simply moving sideways to digest the recent gains and will not make a return trip to the neckline breakout point. This of course could change going forward but that's how things appear at the moment. My hope is for some kind of decline but I think there are quite a few out there with the same idea. The market rarely cooperates. I'll continue to try and remain patient because the ideal time for this trade is long gone. Mentally I'm feeling OK. The VIX was higher today and that fits the lower overall stock prices. The short term technical indicators here have now turned back up. This implies more near term selling which I don't agree with. So we will see where things go from here. We haven't seen the usual positive price bias of expiration week yet. There's only a couple of days left. Asia was lower and Europe mixed in overseas trading. We'll keep an eye on the overnight developments.

Moving higher today on better than expected retail sales as the Dow gained 54 points on light volume. The advance/declines were negative though. The summation index continues to track sideways. The overall market was much stronger than the Dow, with the NASDAQ leading the way. As long as that's the case the bulls are in control. Expect more new all time highs for the S&P 500 as the week progresses. Still short term overbought for the S&P but that won't stop things from going higher in my view. Gold was off $15 on the futures as the US dollar continues to climb. Interest rates were higher as well. The XAU shed 2 1/4, while GDX lost almost 2/3. Volume was light. If the selling continues perhaps I'll get the chance to purchase the GDX January calls. A pullback from the breakout of the neckline for GDX would take us back to around the 33.50 area. GDX does still remain overbought here. We'll see how it goes. Mentally I'm feeling OK. The VIX was lower today. The short term technical indicators here are neither overbought or oversold. My guess here is that the VIX will trend lower as the market goes up this week. I'm expecting the usual positive expiration week bias to be in effect. I'd also expect the volume to start picking up as next week is holiday week with many players on vacation. Not much more economic data due out this week. We'll keep an eye on things but I would expect more buying as the week goes on. Both Europe and Asia were mixed in last nights trade. We'll see what tomorrow brings.

A day of hanging around as the Dow fell 12 points on light volume. The advance/declines were negative. The summation index is trending sideways. Not much change for the major averages today. It is expiration week though so we'll see how the rest of the week goes. Retail sales data out tomorrow could be a market mover. The S&P 500 remains short term overbought. Gold was off a couple of bucks. Both the US dollar and interest rates went up. The XAU and GDX had slight fractional gains on light volume. My open order for the GDX January calls remains out there. Mentally I'm feeling OK. The VIX was up just a bit today and that fits the market action. A shorter post here today as the blog is later than usual. Europe was higher and Asia mixed overnight. We'll see how Tuesday goes.

Continuing to move higher as the Dow gained 179 points on light volume. The advance/declines were positive. The summation index is trying to turn back up. Once again the NASDAQ led the way higher. The S&P 500 had a nice gain and the short term technical indicators are turning back up. Option expiration week is on tap so perhaps we'll head back to new all time highs again. We are still pretty far removed from the 50 day moving average though. Gold added a few bucks as the US dollar had a slight drop. Interest rates finished little changed. The XAU and GDX had fractional gains on light volume. GDX remains short term overbought. Any drop in GDX would be a chance to get some of the longer term options for January or March. All signs point to gold starting a multi-week move higher in my opinion. Still hoping for a back test of the neckline breakout in the inverse head and shoulders pattern for GDX. That's the most we can hope for as this move in the gold shares has been missed. Mentally I'm feeling OK. The VIX continued lower and that fits with todays rally. Indicators here have turned back down which suggests that we'll see higher stock prices next week. We'll see. Not much else to add today as it was a lower week for the S&P on light volume. A pause was needed after the extended run up that we've seen since the beginning of October. I'd expect us to be higher again by the end of next week. Plenty of charts to go over this weekend as usual. We'll be looking to get aboard the gold train next week if we see some weakness. May not happen though. Europe was higher with the exception of the FTSE. Asia was up. It's Friday afternoon and time for a break.

Mixed would be the beat way to describe todays market price action as the Dow fell 158 points on light volume. The advance/declines were positive. The summation index is starting to trend sideways. The overall market was stronger than the Dow with the NASDAQ posting the best gains. The S&P 500 was barely higher. Still pretty far above the 50 day moving average here but there's nothing in the way of more gains to come in my mind. Option expiration week on tap with its usual positive bias. The only thing that would change my mind on the S&P is if we continue lower tomorrow, which would make the weekly candlestick chart suspect. We'll see how Friday goes. Gold continues higher as the futures tacked on $15. The US dollar was higher again along with interest rates. The XAU climbed almost 4 1/2, while GDX added 3/4. Volume was good. I did put in another order for the GDX January calls but we'd need to see some pullback for it to get filled. We've broken out of the head and shoulders pattern for GDX. We might get a chance for the calls if we see a back test to the neckline in the coming days. GDX is now above its 200 day moving averge but is getting short term overbought. Gold is moving up despite what interest rates and the US dollar are doing. That is bullish. Mentally I'm feeling OK. The VIX was lower today in a mixed market. It wasn't a surprise since this indicator does not stay overbought for extended periods of time. The only concern here for the bulls was a lower VIX but not exactly a rebound across the board in stocks. We'll see how this plays out moving forward. Europe and Asia were generally higher overnight. We'll close out the trading week tomorrow.

Another day of selling as the Dow fell 240 points on good volume. The advance/declines were better than 2 to 1 negative. The summation index is beginning to turn sideways. Inflation data came in hotter than expected was the media culprit. But we know that the market was overbought to the extreme and the only solution would be some kind of decline. I still believe that it is just a bump in the road and not the beginning of an extended decline. The NASDAQ did lead the way lower though. The short term indicators for the S&P 500 have rolled over but do still remain in overbought terrotory. We'll see how the rest of the week plays itself out. Gold rallied with the December futures up over $20. The US dollar climbed along with interest rates. The XAU was up almost 2 points, while GDX gained about 2/3. Volume was heavy as the neckline of the head and shoulders pattern for GDX was broken. This is a move that should be chased. GDX is stalling at its 200 day moving average but all signs point to higher prices going forward. I canceled my open order for the January calls and will decide what to do tonight with the next order. I'll have to move to a higher strike price but the rally in the gold shares is for real. Gold moving up on higher inflation is what we would expect but it hadn't been previously happening. Gold moving up with a stronger dollar and higher interest rates is a positive sign. Money is moving into this space and has been quietly for the past month. It doesn't appear that waiting for another pullback here is the proper strategy. Mentally I'm feeling OK. The VIX was again higher today and is overbought. It remains below the 20 level. My guess is that the decline will be short lived according to this indicator. Most of the major stock indices remain pretty far from their 50 day moving averages still, even with the two day decline. So perhaps we will see some more near term selling. Europe was higher and Asia lower in last nights trade. We'll see what tomorrow brings.

We saw some selling today and that was to be expected. The Dow fell 112 points today on light volume. The advance/declines were negative. The summation index is moving higher. The inflation number today came in where expected but the market was overdue for some pullback. The NASDAQ led the way down but I don't think that the rally has ended. This is just a needed pause before we move higher in my humble opinion. The S&P 500 remains short term overbought. Gold continued higher with the futures up six bucks. The US dollar was lower along with interest rates. The XAU rose 1 3/8, while GDX was up 3/8. Volume was light. Not yet short term overbought on the indicators for the gold shares. I would really like to chase this move higher in GDX but cannot bring myself to do it. I missed the opportunity for the calls last week when I did not adjust the price corrrectly on my open order. The inverse head and shoulders pattern on GDX remains intact but hasn't broken through the neckline yet. I'm hoping now for a double right shoulder in order to buy the calls but hope is not a trading strategy. Mentally I'm feeling OK. The VIX was higher today and that fits with todays decline. The VIX was pushed back at its 50 day moving average and remains below the 20 level. The short term indicators here are now overbought. This is one of the reasons to not be too bearish near term. The VIX doesn't stay overbought for lengthly periods of time. It should roll back down and that would correspond with a gain for stocks. We'll see how the market digests the next inflation report tomorrow. Asia was mixed and Europe lower last night. We'll keep an eye on the overnight headlines.

It was a day of just hanging around as the Dow rose 103 points on average volume. The advance/declines were positive. The summation index is moving up. The Dow was the out-performer today as the other main indices had slight gains to new all time highs. Waiting on the inflation data due out on Tuesday and Wednesday. Still overbought to the extreme on the major stock indexes. I believe that a sharp drop is coming and perhaps the inflation data will set things off. Or not as this rally has had legs galore. I think that it's been up 8 days in a row now for the S&P 500. Going straight up usually doesn't end well. Gold gained $9 on the futures. The US dollar was lower and interest rates ticked up. The XAU was up 1 1/8, while GDX added over 1/8. Volume was light. My open order for the GDX January calls remains. I did notice some extremely high volume for a couple of strike prices on the GDX January calls. Perhaps the big money is loading up here. We'll see tomorrow if it expanded the open interest. The short term technical indicators for GDX are mid-range. Mentally I'm feeling OK. The VIX was higher again today with a gain in stocks. This does not fit again as the short term indicators here are moving higher but we haven't seen a decline in stock prices. It may mean that we will get some kind of blow off top soon but that's just a guess on my part. What is the case there is a disconnect between the VIX and stock prices at the moment. I'm not sure what it means. Price action was muted in Europe overnight, with Asia finishing mixed. We'll see how things go tomorrow.

Still moving higher as the Dow gained 203 points on good volume. The advance/declines were 2 to 1 positive. The summation index is moving up. The jobs numbers were better than expected and the market took off from the start. New all time highs on many indices again as the rally seemingly has no end. Overbought, staying that way and who knows how long it will last. Moving straight up and we know that the end won't be pretty. Overdue for some kind of pullback but none arrives. The Dow was the leader today. Gold rallied as the futures gained $25. The US dollar was a bit lower and interest rates dropped. The market reaction for gold, the dollar and interest rates was the exact opposite of what you'd expect from a stronger jobs report. The XAU climbed over 3 1/2, while GDX was up a point. Volume was good. It appears that the inverse head and shoulders pattern for the gold shares is real. We have yet to break the neck line but the implications are that the gold shares still have a long way to go. Have I missed this trade again by not purchasing the GDX January calls this week? Maybe. But I'll be looking for some weakness next week to buy some and I'll move the strike price higher to get filled. It looks like a trade that will work out at this point. But we all know how markets are. They go where they want. Mentally I'm feeling OK. The VIX was higher today and that certainly doesn't fit with a market up over 200 points. It is perhaps implying that some selling is due that will be short lived. We'll see. All of the stock indices are overbought and pretty far from their 50 day moving averages. Something has to give. We should at least see a day of pretty good selling next week. It doesn't mean that the rally will end but the overbought conditions need to be relieved. That will perhaps give us the opportunity to purchase some of the gold share calls going out to January. That's the plan for now since the ideal time to purchase has passed. We'll go over the charts as usual this weekend to see if there's anything else that looks promising. Europe higher and Asia generally lower to finish the week. It's Friday afternoon and time for a break.

A mixed bag today as the Dow fell 33 points on good volume. The advance/declines were negative. The summation index is moving up. The overall market was much stronger than the Dow with both the S&P 500 and the NASDAQ posting good gains to new all time highs. Remaining extremely overbought for the S&P 500 and some type of pullback is imminent. But that would only be a bump in the road as higher prices seem to be in the cards for the near future. Perhaps a run up into the November option expiration. The S&P is getting pretty far from its 50 day moving average and that is a condition that cannot last. But we won't try and step in front of the ongoing freight train. Gold rallied back as the futures rose thirty bucks. The US dollar was higher and interest rates were lower. The XAU dropped a point, while GDX shed a dime. Volume was average. Todays gold share price action was the oppostie of yesterday. Underperformance of the gold shares with a $30 rally in gold is not a positive sign. I'm still leaving my open order for the GDX January calls out there though. The inverse potential head and shoulders pattern remains in place. As long as that is the case, the GDX calls still make sense to me. Mentally I'm feeling OK. The VIX was higher today and that doesn't fit with the rise in the overall market. A possible double bottom is forming in the VIX but this indicator doesn't usually lend itself to technical patterns. Still oversold here but not extremely so. We've got the employment report to sift through tomorrow and the markets reaction to it. Nothing seems to be able to derail the flow of money into stocks at the moment. Europe and Asia were both higher overnight. We'll close out the trading week tomorrow.

Up, up and away we go as the Dow rose 105 points on good volume. The advance/declines were 2 to 1 positive. The summation index is moving up. The Fed offered no surprises and stated that it would start to cut back on the liquidity beginning next month. This was already in the market and we rallied after the announcement. Now cutting back on liquidity would normally be an excuse to sell but not today. This is the world we live in, where money is created out of thin air via unregulated cryptocurrencies and the like. Brave new world indeed. The overall market was much stronger than the Dow with the usual new all time highs set. Still short term overbought and staying that way. Not sure how long this will last but probably longer than you think. Gold was down $15 on the futures but came off of the lows. The US dollar was a bit lower and interest rates had a slight rise. The XAU was up 1 1/2, while GDX gained 1/3. Volume was about average. The gold shares are back to outperforming the metal itself and that is bullish in my book. I adjusted up the price I'll pay on my open order for the GDX January calls but it still wasn't filled. Might have missed this trade again but we'll see how things go tomorrow. The potential inverse head and shoulders pattern on the daily GDX chart is still in place. I may just buy the calls ahead of the employment numbers but we'll see. Mentally I'm feeling OK. The VIX was lower and the short term technical indicators here have rolled back over. This implies a continuing rally for stocks. And who's to argue with that? There's no overhead resistance and no sellers to be found. We'll go along for the ride but we are starting to move straight up and that always ends with a corresponding drop. But we can only guess when that would happen. Asia was lower and Europe mixed overnight. We'll see how it goes tomorrow ahead of Fridays jobs report.

It's a rally that won't stop as the Dow climbed 139 points on what lately passes for average volume. The advance/declines were negative. The summation index continues higher. New all time highs for many of the stock indices. The TRAN gained over a thousand points in todays session. Are things getting a little frothy here? It sure seems like it but the market can go higher than you think sometimes. Overbought for a while now and staying there. Will the Fed throw some water on the fire? We'll find out tomorrow. Gold was off $6 on the futures. The US dollar was a bit higher and interest rates remain steady. We should get some kind of movement in rates with the Fed announcement tomorrow I would think. The XAU and GDX had fractional moves lower on light volume. GDX is trying to hold the 50 day moving average and is short term oversold. This would be the time to attempt the calls for GDX but my order doesn't look like it will get filled. I might have to adjust the price higher, which I don't really want to do. I suppose I'll wait and see what happens tomorrow and go from there. Mentally I'm feeling OK. The VIX was lower today but its short term indicators are still pointing up. A rollover of the indicators here and the rally will continue to grow. Again, tomorrow will be an interesting session with the market reaction to the Fed. We'll watch for any suprises. Asia was lower and Europe mixed as the world waits on the Fed. We'll keep an eye on the overnight headlines.

We begin Fed week with a gain of 94 points on the Dow. The advance/declines were around 3 to 1 positive and volume was light. The summation index is moving higher. Yes, we'll get the Fed this week and it's expected that they will announce a tapering of the monthly bond purchases that have gone on since the pandemic began. This isn't exactly bullish news but it already been priced into the market most likely. In the meantime we continue to hit new all time highs in the stock indices and there is no overhead resistance. We remain short term overbought for the S&P 500 as is the case when a rally is underway. There's still plenty of money around to support stocks at the moment. Gold was up around $10 on the futures. The US dollar was lower and interest rates remained steady. The XAU was up 1 1/8, while GDX added 1/8. Volume was light. GDX is trying to hold on to its 50 day moving average. Not yet short term oversold here. I did adjust my open order for the GDX January calls but may need to do so again in order to get filled here. I'm looking at a potential inverse head and shoulders pattern on the GDX daily chart. The key word here is potential because the pattern has yet to be filled out. Ideally GDX would get down to the 31 level and my open order might get filled. The market though rarely cooperates with what anybody wants. Mentally I'm feeling OK. The VIX was slightly higher today which doesn't fit with an up market. We'll see what that means going forward. There will be plenty of market moving material to digest this week as we'll get economic numbers including the employment report along with the Fed. Earnings continue to come out as well. Plenty of time for a trade or two in the November option cycle. Europe was higher and Asia mixed to start the week. We'll see what tomorrow brings.