Back to the upside as the Dow gained 368 points on good volume. The advance/declines were 5 to 1 positive. The summation index is moving higher. The NASDAQ led the way again and that's a plus. I was at the doctors office again today so the blog will be brief. Gold was up a few bucks on the futres. The US dollar was lower along with interest rates. The XAU and GDX had fractional gains on very light volume. Mentally I'm just not there as my medical issues must take precedence. You should not attempt to trade if you can't give it 100%. The VIX was lower and remains below the 20 level. We'll get the Fed tomoorow but the way the market is acting it appears that higher stock prices are in the near future. Asia was lower and Europe pretty much unchanged in last nights trade. We'll see how it goes tomorrow.

The Dow begins this week with a loss of 261 points on light volume. The advance/declines were slightly better than 2 to 1 negative. The summation index continues to the upside. The NASDAQ led the way down. Fed and employment numbers this week. The market could be in the process of retesting that long term down trend line that it broke. Or that breakout was false and we're heading a lot lower from here. I'm still inclined to believe the former. Gold, the US dollar and interest rates pretty much ended flat on the session. The XAU lost 1 7/8, while GDX fell 1/2. Volume was pretty light. Mentally I'm a bit out of sorts as I had to have medical procedure done this morning and must return for follow up tomorrow. So the blog will not have the usual amount. When you have good health all that matters is the game. Once you have some kind of health issue you realize that's what really matters and the market comes in a distant 2nd. The VIX jumped up today which fits with a down market. Asia was mixed and Europe generally lower overnight. Hopefully I'll make it back here tomorrow.

An up and down session as the Dow managed a gain of 28 points on light volume. The advance/declines were positive. The summation index continues higher. The inflation data came in where expected. We went up down up and back down again. The NASDAQ continues to outperform and that's bullish. The S&P 500 remains short term overbought and is finding some resistance at the December highs. We've broken the long term down trend line here but the volume was not that strong. We also had our first close above the 50 week moving average in about a year. We'll know a lot more after next weeks Fed announcement and speech. The only concern here is the lack of volume on the rise. Gold was up a couple bucks on the futures. The US dollar was slightly higher along with interest rates. The XAU was off 2 1/8, while GDX lost almost 1/2. Volume was light. The short term indicators for GDX have now rolled over and the gold shares under performed the metal itself. That's a negative for the bulls here. We'll continue to wait for GDX to get oversold before trying the calls again there. Mentally I'm feeling OK. The VIX was lower yet again and the short term indicators remain oversold but not to an extreme. The VIX can stay oversold for quite some time during market rallies. Next week looms large with both the Fed and the employment report. We are going to have to carefully go over the charts this weekend before making the next trading decision. The markets reaction to the news and data will be the most important thing as usual. Still plenty of time in the February option cycle to make something happen. We're overall in the bullish camp but the SPY touched its top Bollinger band today and came back. The volume on the recent short term rise there has steadily gotten lower as price has gotten higher. So there will be plenty to ponder in the next two days. Europe and Asia were higher to close the week with the exception of India. It's Friday afternoon and time for a rest.

Grinding our way higher as the Dow gained 205 points on light volume. The advance/declines were better than 2 to 1 positive. The summation index is moving up. The NASDAQ again led the way up. The S&P 500 has broken out from the long term declining tops line although the volume has been weak. You can't argue with price though. The S&P remains short term overbought and staying that way. The 50 day moving average has gotten above the 200 day. I think the only thing that could derail the near term positive outlook would be a negative surprise in tomorrows inflation data. But we aren't looking for that and remain in favor of higher stock prices going forward. Gold took a breather and was off a dozen. The US dollar was higher along with interest rates. The XAU was down 2 1/4, while GDX shed 1/2. Volume was light. There is a potential negative divergence for GDX on the daily RSI indicator. Potential being the key term there as things could change here tomorrow. But it is something to keep an eye on because the gold shares have been pretty strong for quite a while. Mentally I'm feeling OK. The VIX was lower in todays session and that fits an up market. The daily chart still looks like it has room to go down and the lower Bollinger band has a downward slope. Not yet completely oversold here on the daily indicators. The VIX implies higher stock prices to come. Asia was mixed with China still closed. The European markets were up. We'll finish out the trading week tomorrow.

An early steep sell off was met with buying for the rest of the session and the Dow did manage to make it all the way back to a gain of 9 points on light volume. The advance/declines were slightly positive. Bad news on the earnings front from MSFT was the early morning culprit but we saw buyers appear once again during the day. This has been the case lately as we hover around the longer term down trend line for the S&P 500. To me it has the feel of getting the selling out of the way before the market powers higher through that line, hopefully with some better volume than we've seen lately. Where before the negative beginning to the day would lead to more selling we are now seeing buyers step in. The S&P does remain short term overbought. We'll get some economic data in the next couple of days to trade off of. Gold was up over $10 on the futures as we approach the $1950 level there. The US dollar was lower again and interest rates were steady. The XAU rose over 2 1/2, while GDX gained 1/2. Volume was average. GDX is still short term overbought but money just continues to flow into the gold shares. This is a move up that just keeps going. Having regrets about not being on board. But we'll have to remain on the sidelines there for now. Mentally I'm feeling OK. The VIX was slightly lower today and came back from the higher level of the session. The daily chart here looks like it wants to go lower and there's room to move down on the short term indicators. I'm looking for higher stock prices between now and the close on Friday. Much of Asia still closed but what was trading was mixed. Europe was slightly lower. We'll see what tomorrow brings.

The Dow continues its trek upward as it gained 104 points on very light volume. The advance/declines were slightly negative. The summation index continues higher. The overall market was weaker than the Dow with both the S&P and the NASDAQ posting slight losses. The S&P 500 is about to have its 50 day moving average cross above its 200 day. That is bullish. However we are stalling here at the long term down trend line and the volume is weak. We need to see a good volume rise here and it will be all clear for the averages to move higher. We remain pretty sure that will be the outcome unless we see some kind of extended decline from here. Doubt that will happen though as the technical evidence points to a continued move up. No SPY trades in mind at the moment. Gold was up about ten bucks on the futures. The US dollar was lower along with interest rates. The XAU rose a point while GDX added 1/3. Volume was on the light side. The gold shares simply continue to move higher but I cannot bring myself to purchase the GDX calls with the short term overbought technical condition there. We will try and remain patient. Mentally I'm feeling OK. The VIX was lower and its indicators have turned down. Not yet completely oversold there which implies higher prices going forward. Earnings will probably drive things tomorrow as there are no major economic reports due. Japan was higher again as most of Asia remains shut down for the new year holiday. Europe was mixed. We'll keep an eye on tonights headlines.

Moving higher to begin the week as the Dow rose 254 points on light volume. The advance/declines were shy of 3 to 1 positive. The summation index is moving up. Once again the NASDAQ led the way and that is bullish. The S&P 500 is breaking through the long term down trend line today. We'll have to see if it holds up for the rest of the week and I believe that it will. Getting short term overbought on the daily technical indicators there but there is room for them to go higher. The only caveat is the volume not being robust but we'll see what goes on as the week unfolds. We continue to put our faith in higher stock prices moving forward. Gold was up a few bucks on the futures. The US dollar finished little changed and interest rates rose again. The XAU and GDX were barely negative on average volume. We'll continue to wait for GDX to get short term oversold for now. However the money coming into the gold shares has been substantial and you cannot ignore that. Mentally I'm feeling OK. The VIX was lower today and remains below the 20 level. The short term indicators here are trending sideways just below mid-range. The daily candlestick chart view still looks like it wants to go lower which would support higher prices near term for stocks. We'll get the first look at 4th quarter GDP this week and some inflation data due out on Friday. So potential market moving events are out there. Plus earnings will be pouring in as well. Option premiums are high since we just moved into the February option cycle. Still on the sidelines for now. Most of Asia was closed for the lunar new year but Japan was open and higher. Europe was up as well. We'll keep an eye on the overnight developments.

Back up today to close out the week as the Dow gained 330 points on light volume. The advance/declines were around 4 to 1 positive. The summation index continues higher. The NASDAQ led the way again and that's a plus for the bulls. The S&P 500 is once again poised to take on the long term down trend line that has defined the bear market. Next week will probably tell the story on that. We still think that line will be broken to the upside and that the bear will be declared dead. The short term indicators for the S&P have turned back up. With the summation index rising, the path of least resistance is up. We'll know more next week as todays rise could also be just a result of the option expiration. However we don't think that's the case. Gold rose $5 on the futures. The US dollar was slightly lower and interest rates were up again. The XAU was up over two points, while GDX added 3/8. Volume was about average. Still short term overbought on the gold shares but not extremely so. Still waiting for some kind of pullback here but it just isn't happening. Mentally I'm feeling OK. The VIX was lower and closed back below the 20 level. The daily candlestick chart there implies lower VIX readings and higher stock prices. It is another reason why we think that the S&P will finally make it past the down trend line that began last January. The weekly S&P 500 candlestick chart also has a constructive look to it with bottoms above bottoms though still below the 50 week moving average. So next week will be key in my opinion to where we're going and we think it's higher. Europe and Asia were up on Friday to end the week. We'll check the charts as usual over the weekend. It's Friday afternoon and time for a break.

Some downside follow through to yesterdays debacle as the Dow dropped 252 points on light volume. The advance/declines were negative. The summation index is still moving up. The NASDAQ led the way lower but it doesn't have the feel as though we're falling apart here. The S&P 500 did close below its 50 day moving average but remains above the up trend line at 3850. I'm not exactly sure what to make of this weeks price action but I do not believe that we're on the precipice of a huge decline. I could be wrong. 3850 on the S&P 500 will be important to watch in my view. Gold rallied and futures gained over $25. The US dollar was lower and interest rates were higher. The XAU was up almost 2 1/2, while GDX gained over 3/4. Volume was good to the upside. Gold and the gold shares continue to rally despite the overbought condition. This was a move that I should have just jumped aboard at the end of last year. I'm inclined to hop on now but the prudent thing to do would be to wait for the gold shares to get oversold. But at this rate that isn't going to happen anytime soon. Money continues to flow into this sector for whatever reason. Mentally I'm feeling OK. The VIX closed just a bit higher after being up more early on. The daily candlestick chart here looks like it now wants to head back down which would be bullish for stocks. The short term indicators are mid-range. The VIX remains below its 50 day moving average. We'll be rolling into the February option cycle next week and I don't have any urgent trades in mind. Missed opportunities to start the new year and that's always frustrating. But the market doesn't care and you've got to keep moving on in this game. Europe and Asia were lower overnight. We'll keep an eye on tonights headlines and see how the week finishes tomorrow.

Once again the Dow got crushed as it fell 613 points on average volume. The advance/declines were around 2 to 1 negative. The summation index is still moving up though. An early morning rally at the open didn't last long and it was all downhill from there. The Dow was again the leader to the downside. My prognosis for the S&P 500 to break its long term down trend line has been put on hold. That index was turned away again at that level and the line remains in effect. Perhaps there was too much agreement that the line was about to break as the bullishness in the media had risen. Whatever the case, the short term indicators for the S&P have rolled over and it closed below the 200 day moving average. I did not purchase any of the SPY January puts today and that was obviously a mistake. I'll try not to beat myself up too much about that. The small stocks are not falling as much as the Dow so perhaps this decline will not last that long. That's my best guess at the moment. The positive option expiration bias has not showed up again. Gold was off a few bucks on the futures. The US dollar finished little changed and interest rates dropped. The XAU fell over a point, while GDX lost about 1/3. Volume was light. The indicators for GDX remain overbought but not extremely so. We will wait for an oversold reading there before putting on the next trade. Mentally I'm feeling a bit down as I was looking to try the SPY puts here but didn't. It would have been a very short term trade and I usually do not fare well on those. However you cannot wait for the perfect set up every time. You can't win if you're not at the table. The VIX was up and closed above 20. The short term indicators here have turned back up with plenty of room to go higher. I though that the VIX would stay oversold and the market would move higher. After todays price action that thesis was wrong. The VIX is still below the 50 day moving average and we'll keep an eye on that particular level. Perhaps the S&P is headed back to the up trend line at 3850 and that's another area to watch near term. A break of that level would put the bulls on the run. However the overall breadth of the market hasn't been bad here and I'm not convinced the bears are going to take over. Asia was higher and Europe mixed overnight. We'll keep an eye on the overnight developments.

The Dow got clobbered today to begin the trading week but that was mostly due to an earnings miss for GS. The most watched index fell 391 points on average volume. The advance/declines were slightly positive. The summation index is moving higher. The overall market was much stronger than the Dow, with the NASDAQ posting a small gain. The S&P 500 had a small loss and remains short term overbought. I am looking at the SPY January puts here but haven't decided if a trade here is worth the risk. With only three days left in the January option cycle, obviously this would be an extremely short term trade. We do have producer inflation data out tomorrow morning. I was thinking about getting the puts ahead of the Beige book release in the afternoon. However the prudent thing to do is to wait for a decent technical signal as we move forward. I'm thinking that I just want to put on a trade because I haven't in a while and that would probably be a recipe for disastor. We'll see. The S&P is stalling at the long term down trend line. Gold was off ten bucks on the futures. The US dollar was slightly higher and bonds were mixed. The XAU dropped 4 1/2, while GDX shed 1 1/8. Volume was good to the downside. The gold shares underperformed the metal today and that's a negative. Still overbought for the gold shares. The short term up trend line for GDX comes in at 30 1/2 which is a point away. We'll at least wait to see what happens if we get there. A throw back to the former resistance at 30 might be a spot to try the calls. Mentally I'm feeling OK. The VIX was up today but did close below the 20 level. Still short term oversold here and below the 50 day moving average. We would have to see the VIX finish the week above the 20 level to alter our view of higher stock prices going forward. With the small stocks holding up here we still think that the path of least resitance is higher overall. But that doesn't mean we can't see a near term drop before heading back up. Europe was higher and Asia mixed overnight. We'll see what tomorrow brings.

A one day reversal to the upside today as the Dow opened lower and closed higher. It gained 112 points on light volume. The advance/declines were positive. The summation index is moving up. The S&P 500 is now right on the down trend line that began last January that defines the current bear market. This would be the spot to try the SPY January puts with only 4 days to go in this months option cycle. But I wouldn't advise it as the market is in rally mode and will probably close above the line by the end of next week. You could maybe try the puts in a very short term time frame when the market opens on Tuesday but you would have to be very nimble. I don't think it's worth the risk but we will look at it over the weekend. The S&P remains short term overbought. The light volume must be overcome to make the break of the down trend line valid. We expect the market to hesitiate here but it may not develop into a trade worthy decline. Gold was up $25 on the futures and climbed above the $1900 level. The US dollar was slightly lower and interest rates ticked higher. The XAU gained over 1 1/2, while GDX was up about 1/2. Volume was average. The gold shares are short term overbought and staying that way. Perhaps they will contiue to run up until next Fridays expiration. If we get a move back to the break out at the 30 level maybe we could try the GDX calls there. However the reality is that we missed this move higher in GDX for the January option cycle. Mentally I'm feeling OK. The VIX continues lower and has closed the week solidly below the 20 level. This supports the overall bullish scenario for the stock market. Although short term oversold it can remain that way for weeks during rallies. The low VIX is another reason to be careful when attempting any trades from the short side going forward. It really appears that the bears have lost control and we'll see higher stock prices going forward. We'll check the charts over the weekend as usual. It is a holiday weekend as well so trading won't begin again in the US until Tuesday. Europe and Asia were higher to finish the week with the exception of Japan. It's Friday afternoon and time for a break.

The inflation data came and went. The Dow bounced around all session but had a positive bias. The most watched index gained 217 points on average volume. The advance/declines were around 3 to 1 positive again. The summation index continues to climb. The numbers on inflation came in where expected. The Dow led the way today. We are once again at the moment of truth as the S&P 500 is just below the 4000 level. That is where the down trend line that defines the bear market lives. I am pretty sure that this will be the time that we break through it. The S&P is short term overbought but during rallies it simply stays that way. We are almost into option expiration week and the usual positive bias. Next week is a holiday shortened trading week. As much as I'd like to try the SPY puts here, I think that we are going to get through the long term down trend line in the S&P and travel higher. We might pause at theses levels in the near term but the market wants to go higher. The strength in the summation index is telling us that. Gold rallied on the inflation data and the futures gained over twenty bucks. The US dollar was lower and is breaking longer term support. Interest rates dropped again. The XAU added 2 points, while GDX was up over 1/2. Volume was good to the upside as the rally here continues despite the short term overbought conditions. There's nothing in the way to keep things from going higher. Mentally I'm feeling OK. The VIX had the big move that the contracting Bollinger bands projected and it was to the downside. The VIX closed below the 19 level and implies that the path of least resistance for stock prices is up. This is another reason why we think that the resistance for the S&P will be taken out and the bear market will be declared over. Short term oversold for the VIX but it will stay that way for a while during up swings. All around the technical evidence is pointing to higher prices as we continue through January. Only a week to go in teh January option cycle and I don't see a trade worth risking at the moment. We'll see. Europe and Asia showed gains in last nights trade. We'll see how things close out the week tomorrow.

Stocks continues to move higher as the Dow gained 268 points on average volume. The advance/declines were around 3 to 1 positive. The summation index continues to move up. I thought it would be a day of waiting on tomorrows inflation report but the market had other ideas. The NASDAQ continues to lead the way up. At this rate it seems as though the market will simply stay in rally mode regardless of where the inflation numbers come out on Thursday. The S&P 500 is still short term overbought and also on the cusp of breaking through the long term down trend line that has defined the bear market. Weak inflation numbers tomorrow will probably get the S&P above that line. If that's the case we'll see quite a move up tomorrow. However the line is still in effect until it is broken on good volume. It should be an interesting market day. Gold was up about five bucks on the futures. The US dollar was flat and interest rates dropped. The longer term chart of the dollar shows it on its long term uptrend line that began in 2021. It too is in a defining position of where it goes from here. Something to keep an eye on because it will have implications for gold. The XAU and GDX had fractional losses on light volume. Remaining short term overbought on the gold shares. Mentally I'm feeling OK. The VIX was up today and that doesn't fit with an up day for stocks. The Bollinger bands are getting even tighter here on the daily chart. So we can expect some type of big move from the VIX in the near future. Which way is the question. The VIX remains above the 20 level but below its 50 day moving average. Perhaps tomorrow will bring an outsized VIX move. Just a guess on my part. I did think about getting some SPY January puts today but with the summation index in such a bullish position I stayed on the sidelines. Europe and Asia were higher overnight. We'll see how the market reacts to the CPI tomorrow.

Back to the upside today as the Dow gained 186 points on light volume. The advance/declines were better than 2 to 1 positive. The summation index is moving up. It was a good day for the bulls as the daily candlestick chart for the S&P 500 looks much better. The NASDAQ once again led the way and that's a plus. Getting short term overbought on the S&P but not all the way there yet. Resistance still comes in at the 4000 level and that would be the spot to try the SPY puts if you're so inclined. I'm starting to think that we will just keep moving higher. But we'll see what happens when and if we get there. The market is waiting on the inflation data due out on Thursday. Gold was up a few bucks on the futures. The US dollar was slightly higher along with interest rates. The XAU was up 2 2/3, while GDX added over 1/2. Volume was light. I'm still disappointed in not owning the GDX calls here but what can you do? I cannot purchase them with GDX already in the short term overbought condition because it just doesn't make technical sense. Sometimes being patient is one of the hardest things to do. We will have to simply watch and wait here. Mentally I'm doing OK but I would like to make a trade in the January option cycle. Perhaps a position ahead of the inflation data? It would have to be put on tomorrow. The VIX was lower today and the short term indicators are pointing down. Not yet oversold here and the VIX now does look like it is implying higher stock prices in the near term. The coil formation has broken out to the downside as the VIX gets closer to the 20 level. I'll be the first to admit that I haven't been able to figure out this indicator for a while now. We'll see where it goes from here. Europe and Asia were lower with the exception of Japan. Should just be a waiting game tomorrow but with the stock market you never know.

A mixed bag to begin the week as the Dow fell 113 points on average volume. The advance/declines were positive. The summation index continues higher. Tha NASDAQ managed a gain today but we didn't see the good upside follow through to Fridays gains that we were expecting. Markets were higher early on but couldn't hold on to the advance. I still think that we are going higher from here in the near term as the summation index suggests. But if we have a negative session tomorrow I'd be willing to change my mind. The short term indicators for the S&P 500 are stalling and could roll over with a negative session on Tuesday. The daily candlestick chart there would also look ominous with a down day tomorrow. Hasn't happened yet but it's worth keeping an eye on. A failure to move up from here would make Fridays price action just another rally out of nowhere in a bear market. Gold was up $6 on the futures. The US dollar was lower along with interest rates. The XAU and GDX had fractional losses on good volume. Still short term overbought for GDX. The gold shares underperformed the metal itself for a change today. I've decided not to chase the GDX calls and will wait for an oversold condition before trying them there. At least that's the current thought process. Mentally I'm feeling OK. The VIX was up today and was that way even during the morning rally. The daily chart here looks like a triangle or coil pattern, with the reading ready to break out one way or the other. The short term indicators are close to mid-range. After checking the charts over the weekend we could not come up with any definite ideas worth taking a risk on. There is time in the January option cycle to make something happen but we cannot trade just for the sake of trading. Trying to remain patient and looking for a decent signal. Europe and Asia were higher to begin the week. We'll keep an eye on tonights developments.

The Dow exploded to the upside as it gained 700 points on light volume. The advance/declines were better than 6 to 1 positive. The summation index is now moving up. We'll expect to see higher prices from here. The jobs report came in where expected and buyers soon took over. Some short covering in there as well to be sure as there are plenty of bears still around. The NASDAQ led the way today but not by much. The short term indicators for the S&P 500 have taken off to the upside with room to run. I suppose that our orignal premise of a base being formed on the S&P was correct. I still didn't have the guts to try the SPY January calls. If we do get some pullback we might try that idea yet. The first line of resistance for the S&P is the 50 day moving average and we are already there. Next comes the long term down trend line that started a year ago which now lies at 4000. That will be the key test. Get through that and we'll declare the bear market done. Gold rallied as the futures gained over thirty bucks. The US dollar had a big drop along with interest rates. The market seems to believe that the rate rise is over. The XAU added 3 1/8, while GDX gained 7/8. Volume continues to be good on the rise. We missed the GDX January call trade. GDX remains short term overbought which occurs during rallies. I still can't buy the calls here with the overbought condition but perhaps I'll change my mind. Price and volume continue to move in the right direction for the bulls. Mentally I'm feeling OK. The VIX was lower and the short term indicators have turned back down. This implies a lower VIX and higher stock prices. Perhaps the VIX can get below the 20 level and stay there. If that happens the down trend line in the S&P 500 will be broken to the upside. We will see how this all plays out. The economic data out today certainly didn't warrant the kind of rally that we saw but the market always knows more than we do. The summation index is moving back up and we'll take our cues from there. Look for higher prices going forward. Asia was mixed and Europe higher to end the first week of the new year. We'll go over the charts and data this weekend to try and come up with a game plan for the next two weeks in the January option cycle. For now it's Friday afternoon and time for a break.

Selling took hold today as the Dow fell 339 points on light volume. The advance/declines were negative. The summation index is still trying to turn back up here. The NASDAQ was the leader to the downside. The S&P 500 remains short term oversold and in a sideways channel. I thought that the S&P was forming some kind of base and that prices would move higher from here. However the market just keeps moving sideways with no resolution. Now I am not sure what to expect next. We are getting some bullish signals from some of the indicators but the market is not responding. I'm staying on the sidelines for now with regards to any SPY trades. Gold saw selling today as the futures were off twenty bucks. The US dollar was higher along with interest rates. The XAU and GDX had fractional losses on average volume. The gold shares held up better than the metal itself again and that's a plus. GDX is short term overbought and I just can't bring myself to purchase the calls here with that technical condition. But in up trends the overbought condition can last for quite a while. It's never easy in this game. Money does continue to flow into the gold shares though. Mentally I'm feeling indecisive. I can't really make up my mind what to do here so I'm still on the sidelines. The VIX was off today but down from its best levels on the session. The short term indicators remain at mid-range. I'm not about to predict which way the VIX goes from here as it has had a mind of its own lately. We'll get the employment report tomorrow and it should provide the catalyst to get prices moving one way or the other. After tomorrow there's still a couple of weeks left in the January option cycle. So there's plenty of time for a trade. Asia was up and Europe mixed in last nights trade. All eyes on tomorrows jobs report.

The second day of the new year continued with indecision as the Dow gained 133 points on average volume. The advance/declines were 4 to 1 positive. The summation index is attempting to turn back up. We were in positive territory for much of the session but moved back and forth from good gains to just smaller ones. The S&P 500 remains short term oversold despite moving up. I'm still a believer in higher prices moving forward. However the lack of a strong move to the upside in the beginning of the year is concerning. Perhaps the jobs report on Friday can get things going. Gold rallied as the futures tacked on another $12. The US dollar was lower along with interest rates. The XAU jumped 5 1/2, while GDX added 1 1/4. Volume was heavy to the upside and GDX broke through resistance at the 30 level. The gold shares outperformed gold itself and that's a plus. It appears that I've missed this trade as GDX is now pretty short term overbought on some of the short term technical indicators. If we do see a near term pullback I'd be willing to try the January calls here. However a more likely scenario is for the gold shares to just plow on higher. Money continues to find its way into this area. Not sure why but we'll stick to the technicals. Mentally I'm feeling OK. The VIX was lower today and that fits with an up market. The short term indicators are mid-range and the Bollinger bands are contracting. Still above the 20 level on the VIX but that could change if we see a rally in stocks. Not exactly sure what is next for the VIX as I haven't been able to figure this indicator out for a while lately. Asia was mixed and Europe higher overnight. We'll keep an eye on tonights headlines.

A volatile session to begin the new year as the Dow lost 10 points on light volume. The advance/declines were positive. The summation index is starting to congest. We had a huge gap up at the open with the Dow almost reaching a 250 point gain. The market then proceded to lose all that and then some with the Dow almost reaching a 300 point loss. It finished about in the middle of todays range. The market is trying to make up its mind here. I'm still looking for higher prices in the near term but we'll see what the market has to say about that. The NASDAQ was once again the underperformer. There is plenty of bearishness around and that usually leads things to go the other way. The S&P 500 remains short term oversold and has been that way for too long in my view. The Bollinger bands here are starting to move closer so we should see some kind of decent move out of this 2 week congestion zone. My guess is that it will be to the upside. I did take a look again at the SPY January calls but didn't have the guts to buy them. We'll consider this idea again tonight. Gold rallied to begin the year with the futures up $18. The US dollar was higher and interest rates fell. It looks like today had a flight to safety theme to it. The XAU climbed 3 1/3, while GDX was up a point. Volume was good. The 30 level once again held for the upside in GDX. I suppose if GDX gets through there on good volume we'll just have to jump on board. Hasn't happened yet but we will keep an eye on it. Mentally I'm feeling OK although I do have some indecision as to what is going on here. The VIX was up today and that fits the overall market. The short term indicators here have turned up as well. The Bollinger bands are starting to contract here. Not sure what to expect next with the VIX but that isn't a surprise. Not much of a Santa Claus rally so far and there is only one day left for that. I remain on the sidelines for now but we'll take another look at the SPY calls tonight. Asia and Europe were higher overnight. We'll see how things go tomorrow.