Inflation data was high but came in where expected and the Dow rallied 216 points on light volume. The advance/declines were slightly negative. The summation index is now moving sideways. Most of the major stock averages were up today. The S&P 500 closed at a new all time high. It is short term overbought now but not completely so. I am still thinking about the SPY December puts ahead of the Fed next week. However we'll have to see how the market moves before Wednesday. I did not think that we would see new highs again this year when the recent decline started. So perhaps the sidelines would be a better spot for me with regards to the SPY. We'll see. Gold was up a few bucks on the futures today but did come off of its highs. The US dollar was lower and interest rates finished little changed. The XAU lost 1 1/8, while GDX fell around 20 cents. Volume remains very light for the gold shares. There is no interest here. My GDX January calls continue to slowly lose ground as this trade has not worked out as planned. GDX remains short term oversold and staying that way. Once again gold itself was up and the gold shares did not follow. That's a negative. Mentally I'm feeling OK. The VIX was lower and closed below the 20 level. It is resting on its 200 day moving average. Short term oversold but it could stay that way if the rally continues. It is implying higher stock prices going forward as it appears that we are in the midst of a December rally. A bit early for the Santa Claus rally but you cannot ignore that prices are moving up. I'll be going over the charts as usual this weekend while I try and decide what action to take next week. Europe and Asia were lower to close out the trading week. It's Friday afternoon and time for a break.