We certainly did not see the usual positive option expiration bias this week as today the Dow fell 305 points on good volume. The advance/declines were around 2 to 1 negative. The summation index is moving lower. The NASDAQ led the way down and that is not a plus. The major indices had gaps down at the open and the selling continued for much of the rest of the day. Markets managed to move sideways for the final couple of hours. The short term indicators for the S&P 500 have now rolled over with plenty of room to go. The weekly candlestick chart here suggests at least some sideways price movement unless we see a big rally next week. I was looking for higher prices in the short term and that was wrong. Not sure where we go from here but will have to check all the charts over the weekend. Gold was off another five bucks on the futures. The US dollar was slightly higher and interest rates finished flat. The XAU was off 1 1/2 and GDX lost 1/4. Volume was average. GDX remains short term oversold and is hanging in at its 200 day moving average for now. GDX technically hit a bear market this week as it is down 20% from the recent high. We will try and wait for things to sort themselves here before trying the GDX options again. Mentally I'm feeling OK. The VIX was up today but off of its best levels on the session. The short term indicators here turned up but remain oversold. I thought the VIX was pointing to higher near term stock prices as well and that was incorrect. I'm not sure where it goes from here but it is still far off from the 20 level although it did pop above the 200 day moving average today. This weeks stock price action puts into question whether the election rally will continue. We'll know more as we get into next week. Rolling into the December option cycle and the premiums will be high. I'm on the sidelines for now. Asia mixed and Europe slightly lower to close out the week. It's Friday afternoon and time for a break.

Lower today as the Dow fell 207 points on average volume. The advance/declines were negative. The summation index is beginning to trend down. Producer prices came in about where expected. The short term indicators for the S&P 500 are starting to roll over but remain overbought. I don't think that the rally is finished here but I could be wrong. Expiration Friday on tap tomorrow. Gold was off $13 on the futures. The US dollar was up and interest rates finished mixed again. The XAU was up 1 1/4, while GDX had a fractional gain. Volume was good. GDX bounced off of its 200 day moving average today. It remains short term oversold with plenty of techncial damage done for the bulls. Mentally I'm feeling OK. The VIX finished flat despite the drop in stocks. Not sure what that means. The VIX is still short term oversold and staying that way. It still implies higher market prices going forward. Europe higher and Asia lower overnight. We'll see how expiration Friday turns out tomorrow.

Back and forth today as the Dow rose 47 points on average volume. The advance/declines were negative. The summation index is tracking sideways. Todays inflation data came in where expected. It was a mixed bag for stocks as the NASDAQ posted a loss on the session. The S&P 500 had a slight gain and remains short term overbought. We are in a waiting mode for now when it comes to the next trade. Two days left in option expiration week. Then we roll into the December option cycle which has an extra week in it plus a Thanksgiving holiday week. So unless we get a very good signal, I'll be sitting things out for a while most likely. Gold was down $26 on the futures. The US dollar was higher yet again and interest rates finished mixed. The XAU dipped 2 1/4 and GDX slipped 1/2. Volume was a bit above average. Short term oversold and staying there for GDX. Almost to the 200 day moving average at the 35 level. GDX has dropped about 20% in around a month from the recent high. That's quite a move in a short period of time. It is probably best to let things settle down in the gold shares before trying to trade them again. Mentally I'm feeling OK. The VIX was lower again today and remains short term oversold. It looks like the VIX will stay oversold for a while. There doesn't appear to be anything in the way of the current stock market rally. Europe and Asia were generally lower overnight. We'll get a Fed chairman speech and inflation data out tomorrow.

Sellers returned today as the Dow fell 382 points on average volume. The advance/declines were around 4 to 1 negative. This will have the summation index moving sideways. The Dow led the way lower and that isn't the most bearish scenario. Waiting on tomorrows inflation data. The S&P 500 remains short term overbought. We are in a watch and wait mode for now. Gold continues to fall as the futures dropped another ten bucks. The US dollar was higher along with interest rates. The XAU shed 2 1/4, while GDX was off over 1/2. Volume was heavy again to the downside. GDX remains short term oversold and below the lower Bollinger band. Looks like it's on the way to the 200 day moving average. Mentally I'm feeling OK. The VIX was lower today and that doesn't fit with a down market. Short term oversold and staying there for the VIX. My guess is that it continues sideways to lower for the rest of this week. Not much else to report today. Moving on from yesterdays loss. Haven't seen the usual option expiration week positive bias yet. Asia and Europe were down in last nights trading. We'll see what Wednesday has to offer.

The Dow kept moving higher to start the week as the most watched index gained 304 points on good volume. The advance/declines were positive. The summation index is moving higher. The overall market was a bit more subdued as both the NASDAQ and S&P 500 finished little changed. The technical condition for the S&P remains short term overbought and staying that way for now. We've got inflation data on tap this week for the market to deal with along with a Fed chairman speech. It's also option expiration week. So there will be plenty of excuses for the markets to move. Gold got clobbered again today as the futures lost $65. The US dollar was higher and the bond market was closed for Veterans day. The XAU fell 9 points and GDX lost 2 1/3. Volume was very heavy to the downside. My GDX November calls got killed. It was a 95 % loss as the gold shares opened with a huge gap lower. Another poor decision on my part for taking on this trade and the management of it stunk. The best result it got to was break even. GDX has broken the up trend line that began in February. Short term oversold and staying that way. The medium term picture has not made it to oversold yet. It appears that GDX is heading to its 200 day moving average at 35. The longer term bullish up trend line comes in at 29. I don't think that it is heading all the way back there but who knows? Mentally I'm feeling a bit frustrated as my last few trades have been losers. But the markets don't care. As usual the one thing that you have to be able to do in this game is to keep moving on. I doubt I'll be taking on any trades here on expiration week but maybe. A short term SPY put trade would be the choice. But that sounds more like a revenge trade due to todays loss. The VIX was flat today. Still in a short term oversold condition. Not sure what comes next for the VIX but sideways isn't out of the question. It's back to the drawing board for me when it comes to the next trade to take on. Might have to sit on the sidelines for a while. Europe and Asia were higher to start the week with the exception of the Hang Seng. I'll keep an eye on the overnight developments.

Still moving higher going into the weekend as the Dow gained 259 points on good volume. The advance/declines were positive. The summation index is now moving up. The Dow led the way and that isn't the most bullish scenario. Both the NASDAQ along with the S&P 500 had small gains. New all time closing highs all around so we can't feel too bad on the bullish side. The S&P is short term overbought. Moving into option expiration week and there's nothing to prevent us moving up from here. There is no overhead resistance. Not sure how long the rally will last but it's usually longer than you think. Gold was off a dozen on the futures today. The US dollar was higher and interest rates finished mixed. The gold shares were lower as the XAU fell 2 1/2 and GDX lost 1/2. Volume was average. My GDX November calls got more than cut in half from yesterdays break even level. With only a week to go in these options obviously now I should have sold them yesterday. This will be most likely another loser unless we see some extreme event over the weekend. Still below the down trend line and 50 day moving average for GDX. Mentally I'm feeling OK. The VIX was still lower today and remains short term oversold. The implication is for more gains in stocks. A big week for the bulls and we'll see if they can build on it going forward. I'll be going over all the charts this weekend but will probably remain on the sidelines with regards to the SPY November options. I'll be looking to get out of the GDX call trade with the smallest possible loss. Europe and Asia were generally lower to close out the week. It's Friday afternoon and time for a break.

The Fed came and went but the rally continued for the overall stock market. The Dow was the laggard though and finished flat on heavy volume. The advance/declines were positive. The summation index is still trying to turn around. The NASDAQ led the way higher today and that's a plus. The S&P 500 is almost back to being short term overbought again. New all time highs now on a daily basis with no overhead resistance. The bulls are in charge. Gold bounced back $35 on the futures. The US dollar was lower along with interest rates. The XAU was up 3 1/3, while GDX gained 7/8. Volume was above average. The short term indicators for GDX have turned back up. However there is a short term down trend line and the 50 day moving average at 40 that needs to be gotten through. Another day like today would do it but that's probably asking a lot. My GDX November calls are back to where I purchased them in this ill timed trade. I should probably be out of this trade tomorrow. Mentally I'm feeling a bit tired. The VIX continued lower and is now below its 200 day moving average. Short term oversold here as well but the VIX can remain that way for an extended period of time during rallies. There doesn't appear to be anything in the way of further price gains in stocks going forward. Option expiration week is next week and if the usual positive bias shows up we'll see more gains. Europe was higher with the exception of the FTSE and Asia finished mixed. We'll close out quite a trading week tomorrow.

It was a Trump victory in the US election and stock markets exploded to the upside. The Dow, S&P 500 along with the NASDAQ hit new all time highs. The Dow gained 1508 points on very heavy volume. The advance/declines were positive. The summation index is trying to turn back up. Stocks rejoiced at the implication of another four years with Trump at the helm of the US government. The short term techncial indicators for the S&P improved and are moving straight up. There is no overhead resistance for the major stock indices. I'm not sure how long the rally lasts but there is nothing in the way for now on higher prices. We've got the Fed tomorrow and a rate cut is widely expected. I missed out on the SPY November calls as I did not want to pay the high premiums for another mistake on my part. Too late for that idea now. Gold got clobbered as the futures lost eighty bucks. The US dollar jumped higher and so did interest rates. The gold shares got slammed with the XAU losing almost 4 points and GDX dropping 1 1/2. Volume was heavy to the downside. Considering the drop in gold itself, it could have been worse for the gold shares. Gold was dropping overnight but not as steep as it became today. I should have canceled my open order for the GDX November calls but did not. Yet another mistake. It was filled at the open and is showing a loss. I might be able to cut the loss tomorrow if we get some good news from the Barrick Gold earnings before the bell. The technical picture for GDX has changed as the short and longer term up trend lines have been broken. It remains short term oversold but can remain that way during down trends. Mentally I'm feeling OK. The VIX gapped lower today which fits with a robust stock market. It is now well below the 20 level and its 50 day moving average. The VIX is right by its 200 day moving average and if it can get below that level the rally will have legs. Today we saw an example of how quick things can sometimes change in the market place. We don't often see moves like we saw today but thare is always that potential. Asia was mixed and Europe lower overnight. We'll see how the market reacts to the Fed tomorrow.

Moving higher on election day as the Dow gained 427 points on light volume. The advance/declines were 4 to 1 positive. The summation index is trying to turn around. Another day of breadth like today would do it. The NASDAQ led the way higher and that is a plus for the bulls. Getting the election put of the way was to be seen a positive for the market and we probably got some of that today. The short term indicators for the S&P 500 have turned up with plenty of room to go. I might be premature but this could be the beginning of a rally to new all time highs for the S&P. I did not get any of the SPY November calls here as the option premiums were too high for me but perhaps there will be another chance. Of course one day doesn't make a rally and the election results could change things. But my thinking is that the market will go higher from here regardless. Gold was up $5 on the futures. The US dollar was lower and interest rates finished mixed. The XAU and GDX had fractional gains on light volume. The gold shares did not follow the overall market today. GDX remains on its 50 day moving average and short term oversold. My open order for the GDX November calls is still out there. Mentally I'm feeling OK. The VIX was lower today and its short term indicators have turned down. The movement here is another reason to be positive on the market going forward. Still above the 20 level and its 50 day moving average though. Getting below those levels should be an all clear signal for the bulls. Europe and Asia were higher overnight. I'll keep an eye on the election results along with the futures movements tonight and we'll see what tomorrow brings.

Some selling today ahead of an important week as the Dow fell 257 points on light volume. The advance/declines were positive. The summation index is moving lower. We've got the US election and the Fed on tap this week. The NASDAQ along with the S&P 500 had minor declines. Waiting on results and data. I still like the idea of the SPY calls in a sigh of relief rally once the election has been called. More importantly the S&P is short term oversold and hanging in at the 50 day moving average along with the lower Bollinger band. However the option premiums remain high for the SPY options. If they do move low enough for me I'll probably give this trade a shot. Gold was off a few bucks on teh futures today. The US dollar was lower along with interest rates. The XAU and GDX had slight fractional moves one way or the other on light volume. GDX is hugging its 50 day moving average and is also short term oversold. I did place an order overnight for the GDX November calls but it was not filled. I am leaving the order open. This is a trade that has worked the previous four months heading into option expiration. We'll see if number five follows that pattern. Mentally I'm feeling OK. The VIX finished flat today. Still in short term overbought territory. Still below the levels of the recent highs for this indicator. It is another reason that leads me to believe that the SPY calls will work here. However if the VIX spikes up from here that trade idea would be dead. Asia was mixed and Europe lower to begin the trading week. We'll see how election Tuesday shapes up.

We did not see follow through selling today but instead got an oversold bounce as the Dow gained 288 points on light volume. The advance/declines were negative. The summation index is moving lower. The jobs report came in weaker than expected. The NASDAQ led the way up but we are in a precarious market position. We do not know if today was just a reaction to relieve the oversold market condition before we head lower or if the decline will end here at the 50 day moving average on the S&P. We are in short term oversold territory on the S&P 500 so you can make the case either way. However todays price action cannot be construed as positive, since the early gains were sold off for the rest of the session. I did place an overnight order for the SPY November calls but it was not filled. I think that I still like this idea but from lower levels on the S&P if we get them. Gold was off five bucks on the futures. The US dollar was higher along with interest rates. The XAU lost almost 2 points and GDX dipped 1/2. GDX is now short term oversold which is what I've been waiting for to consider the calls here again. A call trade on GDX has worked the last three times it got short term oversold in the previous three months. There is nothing to say that it won't work again this time around. GDX is right on its short term trend line though. A break below here would make me want to reconsider this idea. Mentally I'm feeling OK. The VIX was lower today and some of the short term indicators have turned down. The rise in the VIX did stop at the recent previous levels during the past couple of months. This is another vote for higher stock prices moving forward and trying the SPY November calls next week. That's not to say that the VIX can't simply turn back up and stock prices continue to move lower. The techncial evidence at the moment though suggests that isn't going to happen. There will be plenty to ponder going over the charts this weekend. Asia was mixed and Europe higher to close out the week. It's Friday afternoon and time for a rest.

A tech wreck on Wall street today as the Dow fell 378 points on good volume. The advance/declines were better than 2 to 1 negative. The summation index continues down. Sour earnings reports from big tech sent stocks with a gap lower at the open and they never looked back. The inflation data came in where expected. The NASDAQ led the way lower dropping over 2 1/2%. The S&P 500 lost over 100 points. It was that kind of day. The S&P is getting to short term oversold but not there yet. Expect some follow through selling tomorrow. The S&P is just about at its 50 day moving average. There is support for the S&P at 5600 and also a longer term up trend line at 5500. Not sure if we get to these levels and if they hold if we do. However I'm still thinking about getting some of the SPY November calls when the S&P 500 gets to short term oversold in the next few days. Gold dropped $44 on the futures. The US dollar finished flat and interest rates were slightly higher. The XAU lost 5 1/4, while GDX slipped 1 1/8. Volume was good to the downside. GDX is getting to short term oversold but is not there yet either. It bounced off of its 50 day moving average today which is its first area of support that includes the short term up trend line. The next up trend line comes in down at the 37 level. Not sure what to do next here but we'll wait and see what level GDX becomes oversold before making any trading decisions. Mentally I'm feeling OK. The VIX jumped today and that was to be expected with the carnage on the street. At the 23 level and above the upper Bollinger band. Another day like today will get us to short term overbought on the technical indicators. The VIX is now at the level for the past couple of market drops in the last two months. So it is possible that the worst is close to being over for the bulls but we'll know in the days ahead. The breadth today also wasn't that bad for a market that got crushed. We'll see where we go from here. Asia and Europe were down overnight and I'd expect more selling on Friday. We'll close out the trading week tomorrow.

Down, up and back down today as the Dow fell 91 points on light volume. The advance/declines were slightly positive. The summation index is still moving down. The NASDAQ led the way lower but it wasn't a steep decline. The S&P 500 remains in a sideways channel. The short term indicators have now turned down for the S&P. Seems like the market is just biding its time here perhaps simply waiting on the outcome of the US election. Or maybe something else is going on below the surface. We'll wait for some kind of technical signal before attempting the next SPY option trade. Gold was up $17 on the futures to a new all time high. The US dollar was lower and interest rates were slightly higher. The XAU lost 2 1/4, while GDX was off 1/2. Volume was light. Gold up and the gold shares down isn't a bullish scenario. Not sure if GDX is forming a bottom here or simply stalling before heading lower. Mentally I'm feeling OK. The VIX was up today and is back above the 20 level. The short term indicators have moved up from mid-range. The VIX implies more selling after todays reading. We'll see. Inflation data due out tomorrow. Europe and Asia were lower last night with the exception of Japan. I'll keep an eye on the overnight developments.

It was a one day upside reversal for the overall market today as it opened lower and closed higher but the Dow fell 154 points on light volume. The advance/declines were better than 2 to 1 negative. The summation index is moving down. Once again we had poor breadth as the market continues to try and figure out which way to go. The NASDAQ finally closed at a new all time high. The S&P 500 had a slight gain. The short term indicators here are moving sideways. Perhaps the tech earnings out this week can get things moving one way or the other. We don't have a clear technical signal for a trade here so we'll have to wait. I'm still in the camp that the SPY calls are the way to go here. I could be wrong. Gold was up $30 on the futures to a new all time high. The US dollar and interest rates finished the day flat. The XAU was up 2 3/4, while GDX added around 2/3. Volume was average. The short term indicators for GDX are trying to turn up from the mid-range level. We will wait for the gold shares to get oversold. Mentally I'm feeling OK. The VIX was lower today which fits the overall market. The short term indicators remain at mid-range. Waiting on earnings and the economic data due this week. End of the month on Thursday. The US election plus the Fed next week. Plenty of excuses for market movement. Waiting on a decent trading signal for now. Plenty of time remains in the November option cycle. Asia higher and Europe lower overnight. We'll see how things go tomorrow.

Higher to begin the week but not a lot of conviction as the Dow climbed 273 points on light volume. The advance/declines were 2 to 1 positive. The summation index continues lower. The Dow led the way today and that isn't the most bullish scenario. We had a gap up at the open and then traded sideways to lower for the rest of the day. The NASDAQ and S&P 500 had slight gains and lagged the Dow. The TRAN was up over 1%. The S&P is still in a sideways trading range with the short term indicators at around mid-range. I'm leaning towards the SPY calls here as the last time the summation index turned down and the market went sideways we saw an upside break in prices. But we'll wait and see for now because the short term up trend line on the S&P has been violated. Gold finished flat on the session but up off of its lows. The US dollar was flat as well and interest rates went higher. The XAU and GDX had slight fractional losses on light volume. The short term indicators for GDX are mid-range and appear to be trying to turn back up. I'm still going to wait for an oversold condition before trying the GDX calls again. Mentally I'm feeling OK. The VIX was lower today as the Bollinger bands continue to tighten. Back below 20 here. I'm still not sure what's next for the VIX but the Bollinger bands are forecasting that something is brewing there. Earnings still coming in and important economic reports due Thursday and Friday. SPY option premiums are still high. Europe and Asia were up to start the week. I'll keep an eye on tonights headlines.

Friday began with a gap higher at the open as buyers started early but the market could not hold on to the gains and it ended as a one day downside reversal. The Dow fell 260 points on light volume. The advance/declines were negative. The summation index is moving lower. It wasn't a broad based sell off as the NASDAQ posted another gain on the day and the S&P 500 was barely lower. The short term indicators for the S&P are now mid-range. Both the NASDAQ and S&P 500 have moved basically sideways for the past couple of weeks. We don't know if it's a top being put in or a consolidation before we move higher. The Dow has taken a drop though. The NASDAQ being able to hold up is a plus but todays daily candlestick there looks bearish. I'll have to check things over the weekend and decide which course of action to take. Gold was up $6 on the futures. The US dollar was higher and interest rates ticked up. The XAU was dwon 3 1/3 and GDX lost 1/2. Volume was average. The short term indicators for GDX are heading lower. We'll wait for GDX to get oversold before thinking about any trades there. Could be a while. Mentally I'm feeling OK. The VIX was higher today which fits the Dow but not the overall market. The short term indicators are moving up and the VIX closed above the 20 level. I'm still not sure what's in store next for the VIX but markets always know more than we do. Plenty of data out next week and it is the end of the month as well. Throw in the constant earnings reports and you can see that it is a time to be nimble. The following week we'll get the US election and a Fed meeting. So there will be opportunities out there. I'll be going over the charts as usual this weekend. Europe and Asia were mixed to finish the week. It's Friday afternoon and time for a break.

Today was a sideways affair as the Dow fell 140 points on light volume. The advance/declines were positive. The summation index continues lower. Both the NASDAQ and S&P 500 posted gains on the session with the NASDAQ leading the way. The short term indicators for the S&P 500 are beginning to stall so perhaps we'll see some more upside tomorrow. Also some of our shorter term indicators have gotten oversold pretty fast so a bounce is possible. I'm still wary of the market here though as the short term up trend line for the S&P was recently broken on an intraday basis. However things have held up for now and we cannot rule out new all time highs as a possibility either. So I'm back on the sidelines with regards to the SPY options for now. Gold bounced back twenty bucks on the futures. The US dollar was lower and interest rates were slightly down. The XAU fell three points and GDX dropped 1 1/8. Volume was good to the downside. Both GDX and the XAU came up from the worst levels on the day. The gold shares were influenced by the poor earnings report from NEM which drove the gold share complex lower. NEM lost about 15% of it value today. Hopefully that is not a sign of things to come for the gold shares. The short term indicators for GDX have rolled over. Mentally I'm feeling OK. The VIX was lower today as the Bollinger bands continue to tighten. Still below the 20 level here and above the 50 day moving average. I'm not sure where the VIX goes from here. Hence we'll wait until next week to decide what kind of position to take with regards to the SPY options. Asia was lower and Europe slightly higher in last nights trade. We'll close out the trading week tomorrow.

Another gap down to begin the trading day except this time the selling continued. The Dow fell 410 points on light volume. The advance/declines were around 3 to 1 negative. The summation index is heading down. The NASDAQ led the way lower and that is not a good sign for the bulls. One day does not make a trend though. The market came back in the last couple of hours or it would have been worse. The S&P 500 did break the up trend line at 5800 but bounced back to finish close that level. The short term indicators for the S&P have rolled over with plenty of room to go. I'm looking at the SPY November puts now but the premiums are pretty high. We'll see if there is any follow through selling tomorrow. Gold took a breather and dropped $30 on the futures. The US dollar was higher again and interest rates were up slightly. The XAU fell 3 1/3, while GDX was off 7/8. Volume was average. GDX remains short term overbought. No trades in mind here for GDX right now as we will wait for it to return to short term oversold before trying the calls there. Mentally I'm feeling OK. The VIX was higher today which fits a down market. Still short term oversold on the VIX. The Bollinger bands here are beginning to contract which would imply that a big move is coming for the VIX. It remains above its 50 day moving average. I think that I'll let this week go by before committing to the next trade. Perhaps premiums on the options will come down a bit depending on the rest of this weeks volatility. We'll see. Asia was mixed and Europe lower overnight. I'll keep an eye on tonights headlines.

We had a big gap lower to begin the session and spent the rest of the day trying to make it all back. The Dow finished down 6 points on light volume. The advance/declines were negative. The summation index is moving lower. The NASDAQ had a small gain and the S&P 500 was barely lower once again. Sideways for a little over a week now on the S&P. It remains short term overbought. The breadth remains negative here as the market is deciding where to go next. It could be another consolidation before new all time highs. The up trend line from the beginning of this rally that began in August comes in at 5800. As long as that holds the trend is up. Gold continues to shine as the futures rose over twenty bucks. The US dollar was slightly higher and interest rates were steady. The XAU gained 3 1/2 and GDX was up 7/8. Volume was average. Going straight up now on the gold shares. This cannot last forever. GDX remains short term overbought and reaching extremes. Markets can stay overbought longer than you think though. I won't be chasing it here. Mentally I'm feeling OK. The VIX was lower today. Above its 50 day moving average and below the 20 level. Still short term oversold and I'm still not sure what to expect next here. I'm looking for some kind of trade here but do not have any decent signals as of yet. Some economic data out this week but nothing major. Earnings continue to be reported. We are in a holding pattern for the time being. Asia and Europe were generally lower last night. We'll see what tomorrow brings.

Selling to start the week as the Dow fell 344 points on light volume. The advance/declines were 4 to 1 negative. This should move the summation index lower. We got a signal from the McClellan oscillator on Friday for a big move within the next two sessions. Today would qualify for the Dow but not the overall market. The S&P 500 only had a slight decline, while the NASDAQ posted a small gain. So we'll see if we get more of an outsized move tomorrow. The technical condition for the S&P remains the same. Short and medium term overbought and staying that way. The rally from the beginnning of August continues and my ideas for some type of decline remain incorrect. I'm on the sidelines for now with regards to the SPY options. Gold was up five bucks on the futures. The US dollar was higher along with interest rates. The XAU had a fractional gain and GDX was barely higher. They both finished well off of the highs for the day. Volume was average. GDX is short term overbought and I'll wait for it to get to oversold before thinking about the calls there again. Mentally I'm feeling OK. The VIX was higher today. It remains above the 50 day moving average. The short term indicators are in oversold territory but not completely so. Not exactly sure what's next for the VIX. I'm in a holding pattern for now when it comes to the next trade as we have just moved into the November option cycle and the premiums are high. Still waiting on the NASDAQ to hit a new all time high and it is getting very close. Europe and Asia were lower overnight. We'll keep an eye on tonights developments.

A relatively quiet expiration Friday as the Dow rose 36 points on light volume. The advance/declines were positive. The summation index is in a general sideways trend. The NASDAQ was the leader to the upside today and that's a plus for the bulls. I've been looking for some type of decline here and it hasn't happened. The market has simply stayed overbought. The volume has been pretty low though and I cannot think that the rally can go on much longer. But who knows? There is not overhead resistance as new all time highs are happening on a regular basis. Still waiting on the NASDAQ to confirm though. The S&P 500 remains short term overbought as it drifts higher. Rolling into the November option cycle on Monday. Gold was up over twenty five bucks on the futures as new all time highs there continue. Silver had a big day moving higher. The US dollar was lower and interest rates were steady. The XAU jumped 7 2/3, while GDX climbed 1 2/3. Volume was good to the upside. GDX is now short term overbought. GDX is now both short and medium term overbought but nothing seems to be in the way of this rally. We will wait again for GDX to get back to oversold on the short term before trying the calls there again. Perhaps this time when that occurs I'll have the good sense to give them a try. We'll see. Mentally I'm feeling OK. The VIX dropped and landed on its 50 day moving average. The short term indicators are heading lower with room to go. Movement on the VIX suggests higher stock prices to come in the near term. It seems like there is no stopping this market from moving up at this point. I'll be checking out the charts over the weekend to try and figure out the next move. Asia and Europe were higher to finish the week. It's Friday afternoon and time for a break.

A mixed bag today as the Dow rose 161 points on light volume to another record close. The advance/declines were negative. The summation index is back to heading sideways. The NASDAQ barely posted a gain and the S&P 500 was off a point. The S&P remains short term overbought. I remain convinced that it needs to take a pause. Expiration Friday tomorrow, not sure what that will bring. Gold was up $15 on the futures. The US dollar was higher along with interest rates. The XAU gained 1 1/2 and GDX was up another 1/2. Volume was average. The GDX calls would have worked in the October option cycle and that was a trade that I missed. Mentally I'm feeling OK. The VIX was lower today. The short term indicators here are still at the mid-range level but appear to be picking up steam heading down. This would imply lower VIX readings and still yet higher stock prices going forward. Still waiting for the TRAN and The NASDAQ to confirm the new all time highs for the Dow and they are almost there but not yet. Confirmation would change my idea about a drop for stocks in the near term. It is something worth keeping an eye on in my view. Europe higher and Asia lower overnight. We'll see how expiration Friday goes tomorrow.

Back to the upside as the Dow gained 337 points on light volume. Another record close there. The advance/declines were 3 to 1 positive. This should move the summation index higher. The Dow led the way today and that is not the most bullish scenario. Both the NASDAQ and S&P 500 were higher but not as much as the Dow. The short term indicators for the S&P remain overbought and heading sideways. I sold my SPY October puts for an 85% loss. This was one of those trades that was a failure from the beginning and never showed any profit. My timing was off early which can't happen on short term trades. I might have to simply skip the short term ideas going forward because my track record there isn't all that good. I do still think that things will head lower from here however I can't wait around for the market to cooperate. I could be wrong. Gold was up $11 on the futures. The US dollar continues higher and interest rates finished flat. The XAU was up 1 1/2, while GDX added 1/3. Volume was average. Both finished off of their highs for the session and have bearish evening stars on their daily candlestick charts. The short term indicators for GDX are still rising though. Mentally I'm feeling OK. The VIX was lower today and is back below the 20 level. The short term indicators here have turned back down but still with no conviction. Getting to mid-range on the indicators for the VIX. Some economic data out tomorrow with retail sales being the most watched. More earnings due as well. I'll be on the sidelines for now. Asia and Europe were mostly lower last night. We'll keep an eye on the overnight developments.

Some sellers showed up today as the Dow fell 324 points on light volume. The advance/declines were about even. The summation index is beginning to move sideways. No real reason for todays decline but the market has been short term overbought for an extended period of time. The NASDAQ led the way lower. The short term indicators for the S&P 500 have turned lower but remain in overbought territory. I'm still a believer in some type of decline from here but it probably won't be in time to save my SPY October put trade. It remains a big loser with only three days to go. I was a day early on this trade and timing is everything when there isn't much left of it in an option cycle. Gold was up a dozen on the futures. The US dollar finished flat and interest rates dropped. The XAU rose 1 1/3, while GDX gained 1/2. Volume was light. The short term indicators are moving up from mid-range for GDX which implies more gains here in the near term. We'll see. Mentally I'm feeling OK. The VIX was higher today which fits the down market. Back above the 20 level. The short term indicators here are trying to turn back up. If successful it should lead to more selling in the near term. We'll see. Asia and Europe were lower with the exception of Japan. We'll see how it goes tomorrow.

Continuing to the upside on a partial holiday Monday as the Dow added 201 points on pretty light volume. The advance/declines were positive. The summation index is beginning to stall. The NASDAQ led the way higher and that's a plus for the bulls. The S&P 500 remains short term overbought as it has been for quite a while. My SPY October puts got crushed today and this trade will end up being a loser unless a sell off appears out of the blue. I'm too far out of the money with only four days to go before option expiration. Shorts got squeezed along with index put owners. I still cannot believe that the market continues higher with such light volume but price is the ultimate judge and jury. No overhead resistance so I'm not sure how long this goes on. Gold was off $7. The US dollar was higher and the bond market was closed. The XAU and GDX had slight fractional moves in either direction on extremely light volume. The short term indicators for GDX are now mid-range. Mentally I'm feeling OK. The VIX was lower today which fits the upside for stocks. The short term indicators here continue to drift lower with no conviction. Back below the 20 level now on the VIX. Not much economic data due out this week but we will have earnings reports to deal with. Europe and Asia were generally higher to start the week. We'll keep an eye on tonights headlines.

The inflation data was a touch lighter than expected and the market took off to the upside. The Dow climbed 409 points on light volume. The advance/declines were just shy of 4 to 1 positive. The summation index is still trending lower but not as rapid. The Dow was the leader and that isn't the most bullish scenario but we cannot argue with price. The S&P 500 had a decent gain and is now at its upper Bollinger band. It remains short term overbought. My open order for the SPY October puts was filled this morning and is showing a loss as my timing was early. Had I waited until later in the session I could have gotten a better entry point. However we'll trade it from where it is. I'm still a believer in this idea but we'll need to see some weakness early next week for the trade to work. Monday is a partial holiday as the bond market will be closed. Gold jumped $34 today on the futures. The US dollar finished flat again and interest rates were just a bit lower. The XAU and GDX had fractional gains on light volume. A nice move for gold but the gold shares lagging isn't a bullish sign. Especially when the overall martket had such a positive day. Not sure what to make of it. Mentally I'm feeling OK. The VIX was lower today which fits an up market. The short term indicators are rolling over but it isn't steep or decisive just yet. Still above the 20 level on the VIX. The light volume rally continues but I do not think that it will end well as we never trust moves without volume. Perhaps it can stay together next week with the usual positive options expiration bias. But we'll see. I'm in the next trade now and the focus will be there. We'll check the charts over the weekend as usual. Europe higher and Asia mixed to close out the week. It's Friday afternoon and time for a break.

We had a gap down at the open as the inflation data was just a bit hotter than expected. The rest of the day was spent in a sideways trading range as the Dow lost 58 points on light volume. The advance/declines were negative. The summation index continues lower. The market had reasons to sell off today but it didn't. So it turned into a day of hanging around. The S&P 500 remains short term overbought. My open order for the SPY October puts is still out there but we are running out of time. Also time premium is beginning to get sucked out of the options so the price on the puts dropped today despite a drop in the S&P. So this trade may not still be the best idea. I'll see if it gets filled heading into the weekend but if not it will be canceled and maybe for good. Gold was up twenty bucks on the futures. The US dollar finished flat as did interest rates. The gold shares found buyers as the XAU gained 4 1/3 and GDX was up over a buck. Volume was average. The technical case for the gold share calls was there but I did not take advantage of it. Concentrating on the SPY probably cost me the opportunity here. The short term indicators for GDX have now turned up from oversold and should have more room to go on the upside. One day doesn't make a trend but GDX has also bounced off of its short term up trend line. Mentally I'm feeling OK. The VIX was just a touch higher today. The short term indicators here are trying to roll over. If successful there should be new all time highs for the S&P in the near future. We'll have to see how the market reacts to the PPI tomorrow. Asia was up and Europe slightly lower overnight. We'll see how things go on Friday.

A new all time closing high for the Dow as it gained 431 points on light volume. The advance/declines were positive. The summation index is still moving lower though. The breadth on this advance is lacking but you cannnot argue with price. The S&P 500 closed at a new all time high as well. Still short term overbought on the indicators here but not completely. The market isn't waiting for the inflation data as it continues higher. The volume is light though and I don't trust light volume rallies. I have once again adjusted my open order for the SPY puts to a higher strike price as I am still in the camp that the October puts will work at some point. But I could be wrong. There is no overhead resistance now for the S&P. However the daily candlestick chart has the look of a rising wedge which would be bearish if correct. Gold was off $7 on the futures. The US dollar was higher along with interest rates. The XAU and GDX had fractional losses on light volume. Once again they came up off of the lows for the session. GDX is short term overbought and at its 50 day moving average. The GDX November calls are still a bit too pricey for me but you can certainly make the case to buy the gold share calls here. Mentally I'm feeling OK. The VIX was lower today and remains short term overbought. Not sure what's happening with the VIX as it usually doesn't stay overbought for long. Still above the 20 level here. Not sure how the market will react to the inflation data in the morning. We were up a lot today so even if the data is benign I'm not sure what the effect will be. My guess is that the PPI will come in hotter than the CPI so I might just get some of the SPY October puts tomorrow if my adjusted order isn't filled. But that's a decision for tomorrow. Asia was mixed and Europe higher in last nights trade. We'll watch tonights headlines and check the reaction to the inflation report on Thursday.

Back to the upside today as the Dow gained 126 points on light volume. The advance/declines were slightly positive. The summation index continues lower. The NASDAQ clearly led the way today and that is a plus. So now the S&P 500 remains in a sideways channel and I am not sure where it goes next. The short term indicators have turned back up for the S&P and it can probably go either way here. You can again make the case for an upside breakout. You can also find technical reasons for stocks to move lower here as well. When in doubt stay out is usually good advice. We are running out of time in the October option cycle. I did adjust the price lower on my open order for the SPY October puts but this may not be the right idea if we continue higher. The inflation data on Thursday and Friday could spark big moves either way. The data is supposed be coming in light. I suppose that I'll see how things go tomorrow and take it from there. Gold was off $24 on the futures. The US dollar finished flat again and interest rates were little changed. The XAU lost 1 1/8 and GDX finished flat. Both were up from the lows on the day. Volume was light. Both the XAU and GDX hit their 50 day moving averages today. They are also both short term oversold. You can make the case that the GDX calls should be purchased here and I would not argue with that. I did look out to the November option cycle here but the premiums are still a bit high for me. Gold down and the gold shares holding up rather well is bullish for GDX. Mentally I'm feeling OK. The VIX was lower today which fits the upside in stocks. Still short term overbought here which makes me think that we'll see more near term upside for the market. It is another reason to reconsider the SPY puts here. Asia was mixed and Europe lower overnight. We'll see what tomorrow brings.

Selling to start the week as the Dow fell 398 points on light volume. The advance/declines were around 3 to 1 negative. The summation index is now moving lower. We were lower from the start and just kept on going. The NASDAQ led the way down and that is not a plus. The S&P 500 is still in a sideways channel but appears to be ready to break to the downside. Whatever I thought about the S&P going on to making new all time highs here has changed. The short term techncial indicators on the S&P have rolled back over. It appears that I am too late for the SPY October puts but my open order remains out there. Fridays price action now looks like the final bounce before we head south. Premiums on the SPY puts have increased. Gold was off $4 on the futures. The US dollar finished flat and interest rates continued to rise. The XAU dropped 2 1/8, while GDX was off 1/2. Volume was light. GDX has now reached short term oversold but not completely. Do we switch ideas here and try the GDX October calls? Not sure as all the recent declines for GDX have made it below its 50 day moving average and we are not there yet. But perhaps we can start to look at the Novermber calls there. Mentally I'm feeling OK. The VIX was up today and now is firmly above the important level of 20. The VIX is also now short term overbought and it usually doesn't stay that way for long. It is above the upper Bollinger band as well. So it is hard to make a case for chasing the SPY puts here unless the VIX at least turns around from these levels. But the more likely scenario is that I've missed this opportunity for the October puts. Inflation data out later this week on Thursday and Friday. That should provide a catalyst for more price movement one way or the other. Asia was up with the exception of India and Europe was generally higher. We'll keep an eye on the overnight developments.

The jobs report came in better than expected and the market liked what it saw. The Dow climbed 341 points on light volume. The advance/declines were positive. The summation index is back to tracking sideways. The NASDAQ led the way today and that's a plus. We were due for some kind of positive move and it showed up. The next question is are we on our way to new all time closing highs for the S&P 500 to follow the Dow? It appears that may be the case. The recent negative price action now looks like a consolidation on the way to higher prices. But one day doesn't make a trend as they say. However the short term indicators on the S&P have now turned back up and I would not rule out new all time highs there early next week. I could be wrong. My open order for the SPY October puts remains in place. Another day like today would certainly get the order filled and I'll have to decide over the weekend what to do. Perhaps move to another strike price or maybe forget about this idea altogether. Gold was off $7 on the futures. The US dollar was higher along with interest rates for the third day in a row. The XAU had a fractional loss and GDX finished flat. Volume was light. Middle East tensions are keeping a bid in the gold shares. Normally a stronger dollar and higher interest rates would be negative for the gold shares. Still not completely short term oversold for GDX. Mentally I'm feeling OK. The VIX was lower and that fits the upside that we saw in stocks today. Still short term overbought here so the VIX implies that we'll see higher equity prices going forward. It is another reason to reconsider the SPY puts here. There will be plenty of time to figure out the path when going over the charts this weekend. Asia and Europe were mostly higher to finish the week. It's Friday afternoon and time for a break.

Waiting on the employment data as the Dow dropped 189 points on light volume. The advance/declines were around 2 to 1 negative. The summation index is trying to move lower now. The Dow led the way down and that isn't the most bearish scenario. Some of our work says that at least some kind of bounce is due now. Whether or not it happens tomorrow remains to be seen. We also have the backdrop of the constant headlines out of the Middle East as the world tries to contemplate the possiblity of all out war. We stick with the technicals as the short term indicators for the S&P 500 have rolled over with plenty of room to move lower. That doesn't mean that we can't go higher tomorrow but any upside could be short lived. Or the market continues to drop and in that case we will have missed the SPY October puts idea. My open order for the puts is still out there but nowhere near to be getting filled. Probably will have to adjust it going forward. Gold rose $8 on the futures. The US dollar was higher along with interest rates again. The gold shares followed the overall market lower with the XAU off 2 3/4 and GDX shedding 3/4. Volume was on the light side. The short term indicators for GDX are not yet oversold. Perhaps there will be a chance at the GDX calls in the October option cycle but it would be strictly a short term trade. Mentally I'm feeling OK. The VIX was up today and closed above the 20 level. Getting to short term overbought on the indicators here. This is why it could be tough to try the puts here because the VIX usually doesn't stay overbought for long. This also why tomorrows price action is important. If the market falls then trying the SPY October puts might be out of the question. If the market rises then trying the puts will make more sense as there will be some breathing room to go higher on the VIX next week. As always there are many moving parts to the option trades that must be taken into consideration. Europe was lower and Asia mixed in last nights trade. We'll see what the market reaction is to the jobs report tomorrow.

A one day reversal to the upside today as the market opened lower and finished higher. The Dow rose 39 points on light volume. The advance/declines were negative. The summation index is still moving sideways. The NASDAQ and S&P 500 posted very slight gains. The short term indicators for the S&P have rolled over but might be beginning to stall. I did place an order for the SPY October puts overnight. It will take some gains to be filled and I'm leaving the order out there. Waiting on the jobs data Friday so I'm not sure what to expect out of tomorrows session. Gold dipped $11 on the futures. The US dollar was higher along with interest rates. The XAU and GDX had slight fractional moves one way or the other on pretty light volume. The short term indicators for GDX are still moving lower and are now at mid-range. Still waiting for GDX to reach short term oversold before thinking about the calls there. Mentally I'm feeling OK. The VIX was lower today and the short term indicators are beginning to stall here as well. Still above the 50 day moving average. Ideal scenario here would be the VIX moves lower and stocks move higher to fill my SPY put order. But then again if the market moves to new all time highs and keeps going the puts are not the place to be. For now I'm sticking with trying the SPY October puts. Asia was somewhat lower and Europe mixed overnight. We'll see what tomorrow brings.

October begins with some selling as the Dow fell 173 points on average volume. The advance/declines were negative. The summation index is still in a sideways configuration. Middle East tension and a huge dock strike in the US was the background for today. Are we too late for the SPY October puts? Hopefully not. The NASDAQ led the way down and that is not a plus for the bulls. The S&P 500 shed more than fifty points. The short term indicators there have turned down although they remain in overbought territory. I'm looking for some upside by Thursday but I could be wrong. Then there's the jobs report and market reaction on Friday to deal with. I am a believer that the SPY puts are the way to go here but now the premiums have moved up and they were already high with still over two weeks to go in the October option cycle. I'm going to be looking at probably buying some this week though. Gold was up $23 on the futures. The US dollar was higher and interest rates dipped. It looks like the flight to safety trades were popular today. The XAU rose 2 1/2, while GDX added 2/3. Volume was average. The short term indicators are now stalling for GDX so perhaps they won't make it back down to oversold. We'll see. I'll continue on the sidelines with regards to GDX for now. Mentally I'm feeling OK. The VIX popped up today and at one point was above the 20 level. The short term indicators are moving higher and now imply more near term selling. This is why we may be too late on the index puts as the VIX is not going to wait around for us. It also closed back above its 50 day moving average. Never any easy trades in this game. Asia and Europe were mixed in last nights trade. We'll see how things go tomorrow.

It was a quiet session for much of the last day in September but volatility picked up in the final two hours. The Dow inched up by 17 points on good volume. The advance/declines were slightly positive. The summation index is tracking sideways. The overall market was stronger than the Dow with both the NASDAQ and S&P 500 posting gains. The Fed chairman was giving a speech today and we'll blame the market movements on that. The overbought technical condition for the S&P remains the same. I'm convinced that the SPY October puts will be my next trade. The timing remains the question for now. Might see some beginning of the month money flows into stocks when October begins tomorrow. Fridays jobs report should be a market mover. Gold was off $15 on the futures. The US dollar was up along with interest rates. The XAU dipped 3 1/2 and GDX lost over 1/2. Volume was average. The short term indicators for GDX have rolled over and thay have room to go lower. GDX did finish up from the lows of the session though. I'm trying not to consider the GDX calls until it gets back to short term oversold. Mentally I'm feeling OK. The VIX was a bit lower today which fits with an overall positive market at the close. The short term indicators are beginning to stall from their pop higher on Friday. Still short term oversold for the VIX but not completely so. If the VIX cooperates with our plans it will head lower as the market moves higher in the next few days so we can purchase the SPY October puts. Markets rarely cooperate with our best laid plans. Europe was lower and Asia mixed to start the week. China will be on holiday beginning tonight. We'll see how October starts out tomorrow.

A mixed bag to close out the week as the Dow gained 137 points on average volume. The advance/declines were positive. The summation index is moving sideways. Both the NASDAQ and the S&P 500 posted small losses. The inflation data came in where expected. We were higher early in the morning and sold off for the rest of the day. The techncial condition of the S&P hasn't changed. Short term overbought and staying that way for now. I'm still in the camp of trying the SPY October puts at some point in this option cycle. Gold was off twenty bucks on the futures. The US dollar was a bit lower along with interest rates. The gold shares took a breather. The XAU fell 5 1/8, while GDX dropped 1 1/4. Volume was average. The weekly candlestick chart for GDX now has a bearish shooting star on it. Perhaps the gold shares will now take a much needed rest. But as always markets go where they want. Mentally I'm feeling OK. The VIX was higher today as the 200 day average seems to have held once again on the daily chart. Turning up from short term oversold on the indicators which implies higher VIX readings coming. That would not bode well for stocks. It also means that perhaps I've missed the best time to try the SPY October puts as well. But we'll wait and see what happens next week before coming to any conclusions about that idea. One day does not make a trend. I'll be checking the charts as usual over the weekend. Europe and Asia were higher with the exception of India to finish the week overseas. It's Friday afternoon and time for a break.

The day began with a huge gap to the upside but then sellers took over for most of the session. The Dow finished with a gain of 260 points on good volume. The advance/declines were positive. The summation index is trying to move back up. The S&P 500 closed at a new all time high. It remains short term overbought and has stayed that way during rally mode. Waiting on the inflation data out tomorrow which should not pose a problem. I'm on the sidelines for now regarding the SPY options but am still interested at the October puts at some point. Gold was up $11 on the futures. The US dollar was lower and interest rates were a bit higher. The XAU was up 2 1/3, while GDX added 1/3. Volume was about average. The gold share rally continues and GDX remains short term overbought. Once again I am not going to chase it here but that has been the wrong strategy lately. However for me it it too late to try the call options there now. Mentally I'm feeling OK. The VIX finished basically unchanged. Still short term oversold and still above its 200 day moving average. Not sure what's next here on the VIX. Just waiting on Fridays inflation data and getting this trading week in the books. Europe and Asia were higher overnight. We'll close out the week tomorrow.

Some selling today as the Dow fell 293 points on light volume. The advance/declines were better than 2 to 1 negative. This should stall the summation index. The Dow was the leader heading lower and that isn't the most bearish scenario. The S&P 500 had a small loss and the NASDAQ eeked out a tiny gain. The S&P has traveled sideways for a week and remains short term overbought. We'll get some economic data out tomorrow and a lot of Fed speak with numerous speeches. I still favor the SPY October puts at some point. Gold was up another seven bucks on the futures. The US dollar was higher along with interest rates. The XAU and GDX had slight fractional losses on light volume. They both finished off of their highs for the session. GDX remains short term overbought and I will not chase it here. Mentally I'm feeling OK. The VIX finished about unchanged. Still short term oversold and staying that way. Waiting to see if it can move below the 200 day moving average. It appears that I am just biding my time this week. The inflation data on Friday should be benign and that should be a plus for the market. Any surprises would change the picture. Patience for now and then we'll see about getting some of those SPY puts. Asia was mixed and Europe slightly lower overnight. We'll keep an eye on the overnight developments.

Just another day of hanging around as the Dow gained 83 points on light volume. The advance/declines were positive. The summation index continues higher. The NASDAQ led the way today and that's a positive. But we didn't have any sort of real rally to the upside. We are grinding our way higher for now. The S&P 500 remains overbought on the indicators for all timeframes. I'm still considering the SPY October puts and am waiting for what I believe to be the right time to purchase them. Trying to remain patient for now. Gold continues to rise as the futures jumped $34. The US dollar was lower and interest rates dipped slightly. The XAU climbed 4 3/4, while GDX added a point. Volume was a bit above average. The gold shares remain overbought but the fear of an all out war in the Middle East had taken over. I still think that the gold shares are due for some selling but the markets certainly don't listen to me. I won't chase the GDX calls here but of course they can go higher in this kind of environment. Mentally I'm feeling OK. The VIX moved lower and is still short term oversold. Waiting to see what happens at the 200 day moving average and we are almost there. Asia was generally higher and Europe up overnight. We'll see how it goes tomorrow.

A mundane Monday session as the Dow rose 61 points on light volume. The advance/declines were positive. The summation index is heading higher. Slight gains for most of the major averages in a sideways trading day. The S&P 500 remains short and medium term overbought. I've kind of decided that I will try the SPY October puts at some point during the October option cycle. Perhaps ahead of Thursdays and Fridays economic reports. September is bucking the negative seasonality trend and I doubt that will last for another month. I do not know what the downside catalyst will be but I'm pretty sure that it's coming. I could be wrong. Gold was up $4 on the futures. The US dollar was a bit higher and interest rates ticked up. The XAU and GDX had slight fractional losses on about average volume. The gold shares are due for a rest. Middle East tension is now a daily occurence and the lower rate news has already happened. What more good news for gold is out there at the moment? GDX is also both short and medium term overbought but the rally sometimes goes on longer than you think. I'm on the sidelines here for now. Mentally I'm feeling OK. The VIX was lower today and that fits an up market. Short term oversold here. Still above the 200 day moving average on the daily chart. A break below there would probably change my mind about trying the SPY October puts. Asia and Europe were higher to start the week. I'll keep an eye on tonights headlines.

It was a pretty quiet Friday as the Dow was up 38 points on expiration heavy volume. The advance/declines were around 2 to 1 negative. The summation index continues higher. The overall market was weaker than the Dow. The S&P 500 posted a small loss and remains short term overbought. Medium term overbought as well here. No overhead resistance for the S&P but I'm not sure how much further we have to the upside for now. All the good news seems to be out. The NASDAQ did not follow the Dow and S&P to new all time highs this week. The TRAN got clobbered today and that is not a positive going forward. So we'll have to wait and see how things unfold heading into the October option cycle. Gold continues to shine as the futures climbed $32 to a new all time high. The US dollar was slightly higher and interest rates a touch lower. The XAU added 2 1/3 and GDX was up 3/4. Volume was good. Above the 40 level now for GDX and that's a positive. I don't want to chase GDX here but it certainly has room to go higher. Short term overbought but not at extremes. The near term calls are pricey though as we are just moving into the October option cycle. Mentally I'm feeling OK. The VIX was lower today which doesn't fit with an overall lower marketplace. Short term oversold but not completely so on the short term indicators. I'm still not sure what's in store next for the VIX. Plenty of work to do over the weekend as I try and come up with a game plan going forward. The recent losing trade does not help on the confidence factor but it will be forgotten shortly. I'll be going over the charts as usual. Option premiums will be high rolling into a new cycle. I'm not completely sold on this rally but markets as always go where they want. Asia was higher and Europe lower to complete the trading week overseas. It's Friday afternoon and time for a break.

The stock market exploded to the upside on the open with a huge gap higher as the Dow finished with a gain of 522 points on average volume. The advance/declines were better than 3 to 1 positive. The summation index is moving up. The NASDAQ led the way higher and was up around 2 1/2%. The McClellan oscillator signal a couple of days ago was valid with todays price action. Was today a delayed reaction to yesterdays rate cut, overnight foreign money pouring into the US futures or something option expiration week related? Doesn't matter as price is the ultimate judge. New all time highs in the Dow and the S&P. The S&P 500 remains short term overbought and will be medium term overbought as well after tomorrow. My SPY September puts went from a gain to a loss overnight. I sold them early this morning for a 65% loss. Yesterday it appeared that this trade had things going for it. Overnight it was destroyed. That is the nature of the game sometimes and you have to simply take the loss and move on. Gold was up $14 on the futures. The US dollar was little changed and interst rates finished mixed. The XAU was up 2 1/8, while GDX added back 2/3. Volume was average. The short term indicators for GDX are trying to turn back up. GDX is up against the resistance at the 40 level. My guess is that a pause is due before attempting to clear that area again. Mentally I'm feeling disappointed at yet another losing trade. The short term trades are some of the toughest ones to try but that won't stop us. The VIX was lower and is back below the 50 day moving average. The short term indicators have rolled back over to the downside with room to go. The VIX implies higher stock prices yet to come. Expiration Friday on tap and I'll be looking at the October option cycle for the next trade. Asia and Europe had nice gains overnight as money is finding a home in stocks. We'll close out the trading week tomorrow.

Quite a session today on Wall street as the Fed went with a half point cut in rates. This was met with euphoria as the market rallied to a new high. However it then turned into a fight between the bulls and the bears for the final two hours. The Dow finished lower by 103 points on light volume. Looks like it was a sell the news event. The advance/declines were slightly negative. The summation index is moving higher. Most of the major averages also had reversals to finish lower on the day. We did receive a signal from the McClellan oscillator last night for a big move in the next two sessions. Not sure if today qualifies but it might. We'll see how things go tomorrow. The NASDAQ led the way down but it wasn't big drop. I did place an order for the SPY September puts overnight. It did get filled on the run up in prices after the Fed announcement. It is somehow showing a small profit but with only two days left in the September option cycle holding on longer than tomorrow would be extremely risky. In fact it could turn into a loser overnight as the volatility in both directions was pretty quick today. The S&P 500 remains short term overbought but the indicators appear to be rolling over. Gold had a dramatic one day downside reversal after being up big after the Fed announcement The precious metal futures finished lower by $15. The US dollar was up slightly while interest rates closed higher despite a cut in rates from the Fed. The gold shares had incredible turnarounds as well after being higher during the day. The XAU lost 1 7/8 and GDX shed 3/8. Volume was very heavy on the sell off. The short term indicators are now moving down for GDX and the daily candlestick chart looks bearish. Mentally I'm feeling tired as the short term trading is a drain on the brain. The VIX was up today which fits a volatile session. The short term indicators are moving higher but not at a steep rate. I'm still not sure what the VIX has in store for us next. I'm in the next trade with two days to go so I'll have my work cut out for me to try and have a profitable outcome. We were overdue for some selling but there's always the chance that today was it and we move higher from here. I'll have to keep an extra eye on the S&P futures overnight. Asia up and Europe down in last nights trade. We'll see what tomorrow brings.

A gap higher to start the day but then sellers took over and the Dow fell 16 points on light volume. The advance/declines were positive. The summation index is moving up. Waiting on the Fed at this point in time. I did place an overnight order for the SPY September puts but it was not filled. Now it gets even trickier as time is running out and we have to gauge the market reaction to the Fed announcement. We'll stick with the technicals as usual and the S&P 500 remains short term overbought. Both it and the NASDAQ posted small gains today. I may try another overnight order for the SPY puts but the time premium in them is getting sucked out at a rapid rate. That's why the timing will be crucial to getting the trade right. There's also a chance that I will simply pass on this idea as I am usually not that successful with the very short term trades. Gold was off $13 on the futures. The US dollar and interest rates were a bit higher. The XAU lost 1 1/8, while GDX shed about 1/3. Volume was light. Still short term overbought for the gold shares but they can remain that way during up trends. Mentally I'm feeling OK. The VIX was up a bit again today and closed at the 50 day moving average. I'm not sure what the VIX will do next. Three days left in the September option cycle. I'll take another look at things tonight and go from there. Asia was mixed and Europe higher overnight. All eyes and ears on the Fed tomorrow.

A mixed picture while waiting on the Fed as the Dow gained 228 points on light volume. The advance/declines were better than 2 to 1 positive. The summation index is moving up. The NASDAQ posted a small loss while most of the other major averages were higher. The S&P 500 had a slight gain and remains short term overbought. I am still considering the SPY September puts for this week. I will buy them perhaps tomorrow if we see more upside. A risky trade to be sure as the timing has to be right. The S&P is stalling at the overhead resistance at around 5650. However if we break through there on good volume, new highs will be the story. I would like to try the puts at some point this week though. Gold was flat on the session. The US dollar was lower and interest rates were slightly down. The XAU and GDX had fractional losses on pretty light volume. Today looked like a pause before we go higher for the gold shares but time will tell on that. Mentally I'm feeling OK. The VIX was up a bit which doesn't fit with the positive tone of the overall market today. Not sure where it is headed next. Not yet completely short term oversold there. Retail sales out tomorrow and that might provide a reason for market movement. Europe was mostly lower and what was open in Asia finished mixed. We'll keep an eye on any overnight developments.

Still drifting higher as the Dow climbed 297 points on light volume. The advance/declines were 5 to 1 positive. This will have the summation index moving back up. The Dow and the S&P 500 are on the cusp of new all time highs. We are getting a short term sell signal from one of our indicators but this hasn't been that reliable lately. It says any strength on Monday can be shorted. Perhaps I'll try the SPY September puts there but the breadth was very good today and the short etrm trend is obviously up. The short term indicators for the S&P are not yet overbought either. However I do not trust light volume rallies. I'll consider what to do over the weekend. Gold added another $30 on the futures as there is no overhead resistance. The US dollar was a little lower along with interest rates. The XAU was up 3 3/4, while GDX gained 7/8. Volume was good as GDX hit a new recent high just above the 40 level. The short term indicators here are not yet overbought. I'm still thinking that the gold shares will run up into next weeks option expiration before taking a break. Mentally I'm feeling OK. The VIX was lower today which fits an up day for stocks. Still not short term oversold yet on the VIX. Plus it still implies higher prices for the market in the near term. Which makes trying the SPY September puts difficult. Not to mention with only a week to go in the September option cycle the timing of any trade next week has to be spot on. The Dow, S&P 500 and the NASDAQ are all right up against their near term overhead resistance. If it holds, the puts will be worth the effort. If it doesn't, new all time highs will be coming and who knows how much higher the market will go? So that is where we are at in a nutshell. I'll go over the charts this weekend to try and determine what to do. But I can tell you right now that you can make the case either way. Hopefully things will become clearer over the next couple of days of research. Europe was higher and Asia mixed to finish the week. It's Friday afternoon and time for a break.

Inflation data came in where expected and the markets continued higher as the Dow gained 235 points on light volume. The advance/declines were better than 3 to 1 positive. The summation index is trying to turn back up. The NASDAQ continues to lead that way higher and that's a positive. The S&P 500 continues to climb. Its short term indicators are moving up with room to go before hitting overbought. It really looks like new all time highs are coming up in the next few days. I might have to forget about trying the SPY September puts for that idea is at least on hold until next week. Yesterdays upside reversal looks like it was for real. Gold climbed $44 on the futures to a new all time high. The US dollar was lower and interest rates ticked up. The gold shares rallied with the XAU up 8 points and GDX gaining 1 3/4. Volume was heavy to the upside. The short term indicators for GDX are moving higher with plenty of room to go. Another missed trade here as the option premiums never got down to what I was willing to pay for this opportunity. It's possible that GDX will run up into next weeks option expiration. They say that missed money is better than lost money but it never feels that way when you miss it. Mentally I'm feeling OK. The VIX was lower and is now below its 50 day moving average. The short term indicators are moving down with room to go before hitting oversold. The VIX still implies higher prices in the near term. Six days to go in the September option cycle. Still time for a potential trade but the ideal time has passed on the GDX calls and the SPY put idea may have to fade away. If we continue higher into early next week the put trade might be possible on a sell the news event with the Fed on Wednesday. But that is a long way from here. Asia and Europe were higher overnight. We'll close out the week tomorrow.

We saw an incredible one day upside reversal today as the market opened and dropped lower only to turn around and finish decidedly higher on the session. The Dow, which was off over 700 points early, made it all the way back and finished with a gain of 124 points on light volume. The advance/declines were positive. The summation index is trying to trend sideways. The inflation data came in where expected but stocks sold off hard early on. The comeback was led by the NASDAQ which added over 2% for the day. The S&P 500 finished up almost sixty points after being down around ninety. The short term indicators there are now at mid-range or above. My SPY September put idea will have to be put on hold for now. We now have to ask if new all time highs are back in the picture. One day does not make a trend but it was pretty impressive. Gold was off a couple bucks on the futures. The US dollar finished a little higher along with interest rates. The XAU was up 1 1/3, while GDX rose a bit over 1/8. Volume was light as the gold shares did not follow the overall markets good gains. The short term indicators here have turned up. I'll try the calls here if they roll back over and the premium is what I'm willing to pay. Running out of time now in the September option cycle. Mentally I'm feeling OK. The VIX was lower but remains above its 50 day moving average. The short term indicators are now below mid-range and pointing lower. This implies more near term gains for stocks. Perhaps the inflation data tomorrow will be benign as well. Asia and Europe were generally lower in last nights trade. We'll see what tomorrow brings.

The overall market was higher but the Dow posted a loss of 92 points on light volume. The advance/declines were slightly positive. The summation index is still moving down. The NASDAQ outperformed today and that is a plus. The S&P 500 is still below its 50 day moving average but the short term indicators are moving up from oversold levels. As long as we continue higher on light volume, I'm still looking at the SPY September puts. Perhaps later this week if the market cooperates. It is entirely possible that we just move higher from here as well but I'm not as sure on that scenario. We'll see what the reaction is to the inflation data and go from there. Gold was up $13 on the futures. The US dollar finished little changed and interest rates continue to drop. The XAU was up a couple points and GDX added almsot 1/2. Volume was light. I did not get any GDX calls today as the premium on the option that I was considering did not drop to the price that I wanted. GDX remains short term oversold on some of the indicators and is right at its 50 day moving average. It may have been a mistake on my part in not getting the calls today but we'll see how it plays out going forward. I think that I'm more sold on the SPY put idea for this option cycle but we'll see. Mentally I'm feeling OK. The VIX was lower today and that fits with the overall market rise. The short term indicators are now mid-range and give the appearance that they could go either way. I'm pretty sure we will see some kind of movement tomorrow morning after the inflation report. Which way is always the question. The data is forecast to be mild. There is also a presidential debate tonight but I don't know how much that will affect the markets. Asia was generally higher and Europe lower overnight. We'll keep an eye on tonights developments.

Trying to bounce as the week begins and the Dow gained 484 points on light volume. The advance/declines were 2 to 1 positive. The summation index is still trending down. The Dow barely led the way today and that isn't the most bullish scenario. The S&P 500 is still short term oversold but the indicators have turned up for now. I'm still considering the SPY September puts but want to see a move higher before purchase. Ideally a light volume move towards 555 on the SPY would build that case for those puts. Inflation data this Wednesday and Thursday should be mild. I will watch and wait for now. Gold was up $10 on the futures. The US dollar was higher and interest rates finished flat. The XAU was up over 1 1/2, while GDX added 3/8. Volume was light. GDX remains short term oversold. I am thinking about perhaps getting the GDX September calls tomorrow ahead of the inflation data. The premiums are still pricey in my opinion. I'll consider things overnight. Mentally I'm feeling a bit tired. The VIX was lower today and the short term indicators have turned down with plenty of room to go lower. The VIX is back below 20. Not sure what to expect next here but a lower VIX and higher stock prices are not out of the question. That could fit with a move towards 555 on the SPY and set us up for the SPY puts for option expiration week. But we'll have to see what actually the market has in store for us. Europe was higher and Asia lower with the exception of India overnight. We'll see how things go tomorrow.

More selling to end the short trading week as the Dow fell 410 points on light volume. The advance/declines were 3 to 1 negative. The summation index is now moving lower. Once again the NASDAQ has led the way down, off 2 1/2% today. That is not a plus. The jobs report came in about where expected as there were no surprises. But traders used it as an excuse to sell. The S&P 500 dropped below its 50 day moving average as it was down 95 points. The short term indicators here are oversold for the most part. I would expect some kind of bounce next week but it will probably be not more than that. That may give us a chance for the SPY September puts. Premiums for the puts are much higher now but I do not see a test of the recent all time highs anytime soon. I could be wrong. Gold was off $17 on the futures. The US dollar finished barely higher and interest rates were down slightly. The gold shares followed the overall market lower. The XAU dropped 4 points, while GDX lost a point. Volume was average. GDX is now short term oversold and I'm willing to give the September calls there a chance next week. I will probably put an order in on Sunday night but we'll see how things look after the weekend. This would have to be a short term trade because I think the overall market still has more room to go on the downside before option expiration. The gold shares have followed the overall market recently and that will probably remain the same. Mentally I'm feeling OK. The VIX was up today and that fits with lower prices. Not yet completely overbought here but getting there. Still above the 20 level which implies more volatility to come. September is generally a negative month for stocks and so far it has lived up to that. There's still a couple of weeks to go in the September option cycle with inflation data and a Fed meeting yet to come. Hopefully I'll be up to the challenge. We'll check the charts over the weekend and be ready to go on Monday. Asia and Europe were lower overnight as players are heading for the exits. It's Friday afternoon and time for a break.

Generally lower today although the NASDAQ managed to post a small gain. The Dow fell 219 points on light volume. The advance/declines were negative. The summation index is moving sideways. The S&P 500 was down and closed on its 50 day moving average. Getting to short term oversold here but not all the way there yet. Just waiting on the reaction to tomorrows jobs report at this point. Not sure what to expect there. Still waiting on some kind of signal or set up for the next SPY option trade. Gold was up $18 on the futures. The US dollar was lower and interest rates were slightly down. The XAU gained 1 1/4, while GDX added 3/8. Volume was light. GDX is short term oversold on some of the indicators. I'll be looking to maybe attempt the September calls there if we continue lower into next week. There hasn't been much interest in the gold shares lately. Mentally I'm feeling OK. The VIX was lower today and that doesn't fit with a down market. Some of the short term indicators here are rolling over. Barely below the 20 level after today. I'm not sure what's next for the VIX. Still two weeks left in the September option cycle and I hope to put on some type of trade in that time span. Can't force things though as markets go where they want. We'll see what transpires tomorrow and go from there. Asia and Europe were lower in last nights trade. We'll close out the week on employment report Friday.

It was a day of stabilization as the Dow rose 38 points on light volume. The advance/declines were slightly positive. The summation index is trending sideways. A back and forth seesion for the most part as volatility cooled off for a day. The overall market was slightly weaker. The S&P 500 was a bit lower but remains above its 50 day moving average. The short term indicators are still pointing down. Not sure what to expect tomorrow ahead of the jobs report on Friday but I would not expect a lot of buying unless a short squeeze takes place. The daily candlestick chart here looks bearish. Gold finished flat on the day. The US dollar was lower and interest rates dipped. The XAU and GDX had fractional losses on light volume. GDX remains at its 50 day moving average. The short term indicators are not yet at oversold levels. Staying patient for now when it comes to the GDX September calls. Mentally I'm feeling OK. The VIX was up a bit today and remains above the 20 level. The picture of the daily candlestick chart here implies that the VIX will move lower from here. We'll see if that happens. Europe and Asia were lower with Japan leading the way. We'll see what tomorrow brings.

Stocks got clobbered to begin the month of September as the Dow fell 626 points on light volume. The advance/declines were 3 to 1 negative. The summation index is beginning to stall. The NASDAQ led the way lower, off 3 1/4%. I was looking for the S&P 500 to set new all time highs this week but that appears to be the wrong prognosis. The short term indicators for the S&P have now rolled over with plenty of room to move lower. Might be too late for the SPY September puts but we'll see. The bigger picture could be a double top on the S&P which would measure much much lower from todays levels. But we'll have to wait and see where we go from here. Perhaps the bearish seasonality factor is kicking in. Looks like everybody returned to their desks ready to sell. Gold was off a few bucks on the futures. The US dollar was slightly higher and interest rates dropped. The gold shares followed the overall market down. The XAU lost 6 3/9 and GDX fell 1 1/3. Volume was good to the downside. The short term indicators for GDX are moving down but not yet completely oversold. GDX did manage to finish above its 50 day moving average. I'm still considering the September calls here if and when GDX gets short term oversold. Mentally I'm feeling OK. The VIX shot higher today which fits the downside price action in stocks. It is now slightly above the important 20 level. The short term indicators are pointing up and most are not close to being overbought. We'll see if today was a one day wonder or the beginning of something sustainable to the downside as we move forward. I'm not sure exactly what to think here so caution on my part is advised. There's still plenty of time to trade in the September option cycle. The jobs report on Friday will be the highlight of the data out this week. Asia and Europe were lower overnight. We'll keep an eye on tonights headlines.

Higher to close out the month of August as the Dow rallied 228 points on average volume. The advance/declines were positive. The summation index continues higher. The NASDAQ was back to leading the way up. The inflation data came in where expected. The S&P 500 is just shy of new all time highs. It remains short term overbought. My guess is that we'll probably hit new all time highs on the S&P after the long holiday weekend. One of the concerns here is the lagging of the NASDAQ, which isn't close to a new all time high. But we'll worry about that next week. Gold fell $25 on the futures. The US dollar was higher and interest rates were up just a bit. The XAU dropped a point and GDX shed 1/4. Volume was light. The short term indicators for GDX are heading lower but it isn't a sharp drop. I'm still considering the September calls there if we make it down to oversold. Mentally I'm feeling a bit tired. The VIX was lower and is still short term oversold. We are expecting the VIX to move lower as the market moves higher in the beginning of next week. It is still above its 200 day moving average which will be a key area to watch. If the VIX heads below there any rally will have legs. All the players should be back on Tuesday so we will begin to have a more complete picture of things. Still remaining patient for now. Asia was up and Europe slightly lower to finish the week and month. I'll have an extra day to go over the charts this weekend. It's Friday afternoon and time for a break.

An interesting session as what was once a broad based rally turned into a mixed picture by the close. The Dow gained 243 points on light volume. It was up well over 400 at one point. The advance/declines were 2 to 1 positive. The summation index is moving higher. After being higher the NASDAQ finished with a loss on the day. The S&P 500 finished flat after being much higher earlier on. It still remains overbought on the short term indicators. Waiting on tomorrows inflation data. It is also the end of the month before a long holiday weekend. My guess is whatever is going to happen will be early in the day and then traders will be leaving early. Gold rose $17 on the futures. The US dollar was higher and interest rates nudged up. The XAU was up 1 3/4 and GDX was up 1/2. Volume was light. The short term indicators on GDX are trying to turn back up. I'll keep an eye on golds reaction to the inflation numbers tomorrow. Mentally I'm feeling OK. The VIX was lower today and remains short term oversold. Not sure what to expect next here. Just waiting on the month of August to come to a close and we'll be looking for a trade in September. Europe was higher and Asia mixed in last nights trade. We'll close out the week and the month tomorrow.

Selling in the middle of the week as the Dow fell 159 points on light volume. The advance/declines were negative. The summation index is still trending higher. Once again the NASDAQ led the way lower and that is not a plus. Waiting on NVDA earnings after the close. The S&P 500 remains in the same technical condition. Short term overbought and staying that way. Seems like we are just waiting for this week to go by and then all the players should be back. No SPY trades for now. Gold dropped ten bucks on the futures. The US dollar was higher and interest rates remained flat. The XAU fell 3 3/4, while GDX shed around 7/8. Volume was light. The short term indicators for GDX have now rolled over. We'll see if thay keep going. Waiting for GDX to return to short term oversold before trying the calls here again. Mentally I'm feeling OK. The VIX was up today which fits a down market. Back above the 50 day moving average. The short term indicators here have turned back up but remain oversold. Just a couple of trading days left in the month of August. Unless something out of the ordinary happens I'll be on the sidelines until after Labor day. Plenty of time left to trade in the September option cycle. Sometimes you have to be patient. Asia was mixed and Europe higher overnight. We'll keep an eye on tonights headlines.

Today we opened lower and closed higher but the Dow only managed a gain of 10 points on light volume. The advance/declines were negative. The summation index is moving up. It appears that we are in a wait and see mode for now. The volume is very low as we wait for a catalyst to get things moving up or down. It's the last week of August before Labor day weekend and trders have taken off. The S&P 500 remains short term overbought and staying that way. I'm still in the camp for new all time highs soon. Perhaps the inflation data or NVDA earnings can get us there later in the week. Gold rose $5 on the futures. The US dollar was lower and interest rates held steady. The XAU had a slight fractional loss, while GDX was unchanged. They both came up from the lows of the session. Volume was very light once again. It appears that the summer doldrums arrived late this year. Mentally I'm feeling OK. The VIX was lower today and remains short term oversold. Back below the 50 day moving average now. I'm still not sure what's next for the VIX. Remaining patient for now when it comes to the next trade. A new all time high close for the Dow today but the NASDAQ is lagging. I'm expecting the S&P 500 to move to new highs as well soon but this isn't a broad upside breakout for now. Plus we are in a negative seasonal period for stocks so I would not want to get too bullish at the moment. The anemic volume is another thing to keep an eye on. Europe and Asia were generally higher overnight. We'll see how things go tomorrow.

Another open higher and closing lower day for the S&P 500 but the Dow managed a gain of 65 points on pretty light volume. The advance/declines were positive. The summation index continues higher. Most of the indices were lower today, with the NASDAQ losing over 150. It is the final week in August before the unofficial end of summer after Labor day next Monday. It's possible that some traders will be away from their desks. Some economic data due this week with inflation news on Friday. The S&P 500 remains short term overbought while we wait and see if new all time highs are coming. Our guess is that yes, we'll see new highs for the S&P sooner rather than later. Gold was up $7 on the futures. The US dollar was a bit higher along with interest rates. The XAU and GDX were barely lower on extremely light volume. We had some geo-political tension over the weekend and the gold shares did not react. Still short term overbought on GDX and waiting on a pullback to try the calls there again. Mentally I'm feeling a bit tired. The VIX was up slightly and is hugging its 50 day moving average. Short term oversodl and remaining that way. Not sure what's next for the VIX. Might be on hold for the next trade until the jobs report in a week and a half but we'll see. Asia was higher except for Japan while Europe ended mixed. I'll keep an eye on the overnight developments.

The Fed chairman said that it is time to lower interest rates and that is all the market needed to hear as the Dow gained 462 points on light volume. The advance/declines were 8 to 1 positive. The summation index is moving up. The NASDAQ led the way and the small cap Russell 2000 was up over 3%. The S&P 500 was higher and remains short term overbought. At this rate new all time highs for the S&P are probably in the cards for next week. The NYSE Composite is already there. Gold was up $30 on the futures. The US dollar was lower along with interest rates. The XAU gained a couple of points and GDX added 1/2. Volume was light. Still waiting for a GDX pullback but it may not appear when we want it. Markets rarely cooperate. Mentally I'm feeling a bit tired. The VIX was lower today and is right at the 50 day moving average. Remaining short term oversold here and it looks like that could last a while. So it looks like all systems are go for higher prices going forward. When there is plenty of money to drive even the smaller issues higher, liquidity is not a problem. The promise of lower interest rates creates a positive backdrop. The best time to jump on board has passed and I will wait for the next signal or some kind of set up. I'll read the charts over the weekend as usual. Europe and Asia were higher to close out the week. It's Friday afternoon and time for a break.

Sellers finally showed up today as the Dow dropped 177 points on light volume. It was another one day downside reversal as we opened higher and closed lower. The advance/declines were 2 to 1 negative. The summation index is moving up. The NASDAQ led the way down and that's a negative. Despite the drop the S&P 500 remains short term overbought. We'll wait and see what the Fed chairman has to say tomorrow and how the market deals with that. Gold lost about thirty bucks on the futures. The US dollar was higher along with interest rates. The XAU fell 3 2/3, while GDX lost a point. Volume was average. The short term indicators on GDX have rolled over but thay are still overbought. I'm still in a wait and see mode here. Mentally I'm feeling OK. The VIX was higher which fits the down move in stocks. Back above the 50 day moving average on the VIX. It is still very short term oversold though. Not sure what comes next here. Remaining patient for now when it comes to the next trade. I'll see how the week closes out and take it from there. Asia and Europe were generally higher overnight. We'll see what tomorrow brings.