The Santa Claus rally is in full swing as the Dow gained 159 points on light volume. The advance/declines were 3 to 1 positive. The summation index is moving up. The NASDAQ continues to lead but we must be reminded that the market is in holiday mode. You cannot argue with price though. The S&P 500 remains short term overbought with potential negative divergences looming. But for now it is all systems on go with the chance to break out to new all time highs in the coming sessions. We will remain on the sidelines with regards to the SPY options until the new year. Gold was up $10 on the futures. The US dollar was lower and interest rates remained steady. The XAU and GDX had slight fractional gains on very light volume. GDX is short term overbought but not at extremes. We will try and wait for a pullback here before attempting the January calls. Mentally I'm feeling OK. The VIX was a touch lower today. The short term technical indicators here are mid-range. Not sure where the VIX heads next but with the market moving higher I'd guess that the VIX will trend lower. However it is hard to put much stock into this week as many of the players are off and will not return to their desks until the new year. Markets that were open overseas were muted and mixed. We'll see how it goes tomorrow.