Inflation data came in where expected which led to some volatility today. We opened higher, gave it all back and then rallied back again into the close. The Dow finished with a gain of 47 points on end of the month heavy volume. The advance/declines were better than 2 to 1 positive. The summation index continues to track sideways. It seems like the market still just can't figure out what it wants to do here. The NASDAQ led the way higher today and that's a plus for the bulls. The S&P 500 remains short term overbought with the negative RSI divergence still in place. Perhaps we'll get a shot at the SPY March puts at some point but when that point is I don't know at the moment. Gold was up ten bucks on the futures. The US dollar was a bit higher and interest rates dipped. The XAU rose 2 3/8, while GDX was up 5/8. Volume was good to the upside. The short term indicators for GDX have turned up. GDX finished well off of its highs for the session. The problem here is that every bounce we have seen lately for GDX hasn't sustained any buying. That could again be the case here as the down trend line at 27 remains in effect. We'll need to see some more buying if this GDX March call trade is to work out. It is showing a small profit after today. Mentally I'm feeling OK. The VIX was lower today but remains perched at the 50 day moving average. Still short term oversold but not extremely so. I don't have a good feel for where the VIX is heading next. Some economic data due tomorrow but nothing as important as today. Plenty of Fed speak to close out the week. Europe and Asia finished mixed last night. We'll close out the week tomorrow.

Still treading water here as the Dow dipped 23 points on light volume. The advance/declines were negative. The summation index is moving sideways. Tomorrow should get things going one way or the other on the inflation data. If that doesn't get things moving I don't know what will. The overall market was weaker than the Dow with the NASDAQ leading the way down. The S&P 500 remains short term overbought and the negative RSI divergence remains in place. I decided to stay on the sidelines with regards to the overall market and not purchase the SPY March puts today. Gold finished flat on the futures. The US dollar was a bit higher and interest rates a bit lower. The XAU dropped 1 1/2, while GDX shed 1/4. Volume was average. My open order for the GDX March calls was filled today. Since I took this trade I stayed out of the SPY put idea. Not sure that was the correct decision though. I at least waited for the price that I was willing to pay for this GDX call idea. GDX is short term oversold but the indicators could still move lower as they are not at extremes. A little over two weeks remaining in the March option cycle but we will probably know tomorrow whether or not this trade will work. Mentally I'm feeling a bit anxious. Not sure the trade taken on today was worth the risk. Might have done it out of just wanting to get the next trade going. It has technical justification but I'm certainly not confident about it. The VIX was up today and has bounced off of its 50 day moving average. Still short term oversold here but not extremely so. Asia was lower and Europe mixed overnight. We'll see how things go tomorrow.

Back and forth today as the Dow fell 96 points on about average volume. The advance/declines were positive. The summation index continues sideways. The Dow was the laggard today with both the NASDAQ and the S&P 500 posting gains. Waiting on Thursdays inflation report seems to be the story. We will get a GDP revision tomorrow and some talking from Fed officials. The technical condition for the S&P remains the same. Short term overbought with the negative RSI divergence on the daily chart. The question is whether to buy the SPY March puts ahead of Thursdays data. I've made the case here technically but as time moves on I've got less conviction for the trade. Not sure why that is. However if we see some strength tomorrow I'll have to figure out if it's worth the risk or not. The same goes for the GDX March call trade. If the market drops most likely the gold shares will follow. My open order for the GDX calls remains out there. Today the gold futures finished flat along with the US dollar and interest rates. Are you seeing a trend here? Markets are just hanging around waiting for a catalyst one way or the other. The XAU and GDX had fractional losses on average volume. GDX remains in a negative mode with the down trend line that began at the beginning of the year remaining in force at the 27 level. So tonight I'll have to ask myself. Do I want to try this trade or not? Mentally I'm in a mood of indecision or so it seems. Perhaps I should head to the sidelines but there's no making any money over there. No losing any either. The VIX was lower today and closed on its 50 day moving average. Short term oversold here but not extremely. I'm not sure what's next for the VIX. Decisions will have to be made tomorrow ahead of Thursdays data. Europe and Asia were up last night. We'll watch tonights headlines and get ready for Wednesday.

Another mundane Monday as the Dow lost 62 points on light volume. The advance/declines were negative. The summation index continues sideways. The S&P 500 was lower and didn't hold up here until Tuesday as I had hoped in order to try the SPY March puts. We'll see how things go in the next couple of days but this trade may not happen for me since the index is already starting to drop. The technical picture hasn't changed for the S&P with the negative RSI divergence on the daily chart. Inflation data out on Thursday should be the main mover of the week unless we get some kind of surprise before then. The NASDAQ had the least loss on the day. Gold dropped $7 on the futures. The US dollar was lower and interest rates ticked up. The XAU lost 1 1/2, while GDX shed 3/8. Volume was average. The gold shares did come up from the lows on the session. My open order for the GDX March calls is still out there. Another day like today will probably get it filled. This trade seems to be getting riskier as time goes on as the signal is not as clear as it was. I may adjust it lower overnight. If the overall market starts to drop as I think it will, the gold shares will probably go with it. Mentally I'm feeling OK. The VIX finished flat on the day. Not a clear signal here now one way or the other. When in doubt stay out is an old market saying but perhaps it's appropriate for now. Europe was mixed and Asia generally lower with the exception of Japan. We'll keep an eye on the overnight developments.

Just hanging around today to digest yesterdays huge gains as the Dow rose 62 points on light volume. The advance/declines were positive. The summation index is still moving sideways. The Dow led the way today and the NASDAQ posted a small loss. New all time highs for the Dow and the S&P 500 again. The S&P remains short term overbought with the negative RSI divergence still in place on the daily chart. If we can remain positive into Tuesday I'll be trying the SPY March puts. Inflation data due out on Thursday. Gold was up $15 on the futures. The US dollar ended flat again and interest rates were lower. The XAU gained 1 7/8, while GDX was up 1/2. Volume was good to the upside. The short term indicators for GDX have turned up and the daily candlestick chart looks positive. My open order for the GDX March calls wasn't filled and it looks like I've maybe missed this trade. I'll leave the order out there and see what happens in the beginning of next week. Mentally I'm feeling OK. The VIX was lower and the short term indicators still have room to move down. The VIX still implies higher stock prices in the near term. We'll see. I'll take the weekend to go over the charts for some type of game plan next week. For now I'm still a believer in the negative RSI divergence on the S&P daily chart. Throw in a short term overbought signal on Tuesday and I'll be trying the puts. But we have to get there first. Europe finished higher and Asia was mixed to close out the week. It's Friday afternoon and time for a break.

The stock market exploded to the upside today as the Dow climbed 456 points on average volume. The advance/declines were positive. The summation index remains in a sideways pattern. NVDA came out with a better than expected earnings report and guidance after the bell. The result was buying upon buying today along with short covering. The NASDAQ led the way up roughly 3% on the day. The S&P 500 hit a new all time high along with the Dow. The NASDAQ is just about there. To me it is getting a bit out of control but that doesn't mean that we won't move higher. I'm still looking at the negative RSI divergence on the S&P daily chart but upside follow through tomorrow may take care of that. However when one stock can set off a rally like this it is a cause for concern. The breadth today was nothing to write home about either. You cannot argue with price though. Gold finished flat on the session. The US dollar ended flat as well and interest rates ticked up. The gold shares did not go along with the overall market today as the XAU shed 2 1/4 and GDX lost 2/3. Volume was good to the downside. Newmont set a new 52 week low as there is no love for gold stocks at the moment. My open order for the GDX March calls wasn't filled and I adjusted it lower. I'm not sure if this is still the right idea for now. I'm considering going out to the April option cycle but we'll see what happens tomorrow. Mentally I'm feeling OK. The VIX was lower today and that fits the rally. The short term indicators have rolled over with room to go. This implies yet even higher stock prices going forward. Asia and Europe were higher as it appears there's a worldwide run into equities. Not sure where all the money is coming from but the bulls are clearly in charge. We'll close out the trading week tomorrow.

Looking for direction as the Dow gained 48 points on light volume. The advance/declines were about even. The summation index is moving sideways. We bounced around trending lower for much of the session before a last half hour rally sent indices into positive terrritory with the exception of the NASDAQ. The Fed beige book was a non event. Waiting on NVDA earnings after the bell to set the tone for tomorrow. The S&P 500 is now mid-range its Bollinger band channel with the short term indicators drifting lower. There is no clear trading signal one way or the other here so we'll be on the sidelines with regards to the SPY for now. Gold was off a few bucks on the futures. The US dollar was a bit lower along with interest rates. The XAU and GDX had slight fractional losses on average volume. I did place an order for the GDX March calls but it will take some selling there to get filled. I'm leaving it open overnight. Newmont earnings on tap for tomorrow. The gold shares seem to be holding in here so this trade may have been missed as well. Mentally I'm feeling OK. The VIX was a touch lower today. The daily candlestick chart here looks like it has put in a small top and that the VIX will be heading lower near term. That would be a plus for higher stock prices. I still like the idea of the SPY March puts at some point during the monthly option cycle but need to see a decent signal first. We'll have to stay patient for now. Europe and Asia were mixed again. We'll keep an eye on the overnight headlines.

Sellers took over after the long weekend as the Dow fell 64 points on average volume. The advance/declines were negative. The summation index remains in a sideways channel. The overall market was much weaker than the Dow with the NASDAQ leading the way lower. We did recover from the lows of the session though. The S&P 500 is still in overbought territory but not at extremes. The short term indicators have rolled over. The up trend line from last November is in jeopardy. I still like the idea of the SPY March puts but will not chase things here. If the S&P somehow moves up from here and the indicators stay below their previous highs the puts are worth a shot. But that's asking a lot and I would not be surprised if we just head down from here. Gold was up a dozen on the futures. The US dollar was lower and interest rates nudged down. The XAU finished basically unchanged, while GDX added 1/8. Volume was light. I do like the GDX March calls on a pullback this week if we see one. However with gold up and the gold shares not following it isn't the most positive environment at the moment. Mentally I'm feeling OK. The VIX was up today and closed above its 200 day moving average and upper Bollinger band. Not sure what to expect here next but the short term indicators have room to go higher. It is a short trading week without a lot of economic data on tap. The Fed beige book is out tomorrow with NVDA earnings due after the bell. I suppose it is best to sit tight for now. Europe and Asia finished mixed in last nigths trade. We'll see how things go tomorrow.

The inflation data came in more than expected again and after an intitial drop in the first half hour the market came back to positive territory until there were two hours to go. Sellers then took over and the Dow fell 145 points on light volume. The advance/declines were 2 to 1 negative. The summation index remains trending up but within a sideways range. The NASDAQ led the way lower. I thought that perhaps we would see some kind of blow off top for stocks here but that isn't the case. If it was we'd already be going straight up. Todays price action puts the market in a tenuous position in my view. The negative RSI divergence on the daily chart for the S&P 500 is still intact. However the long term up trend line is still working as support. But to me the rate of ascent is too steep and I'm looking for a pull back to the 4800 level. I could be wrong and often am. I'm considering the SPY March puts. Gold was up ten bucks on the futures. The US dollar finished flat and interest rates rose. Both the XAU and GDX had slight fractional gains on about average volume. The weekly candlestick chart for GDX looks bullish as it has bounced off of its lower Bollinger band this week. It is also oversold on a medium term basis. There is a down trend line still in effect there though and a negative week next week would negate this weeks potential positive candlestick. The trading is never easy. If the market drops next week as I believe that it will the gold shares will probably go with it. Newmont earnings are due on the 22nd as well. I am looking at the March GDX calls. Mentally I'm feeling a bit tired. The VIX was up a bit today. Not seeing any clear signal one way or the other on the daily indicators here. There will be plenty to ponder over the long weekend coming up. Rolling into a new option cycle as well. I'll be going over the charts as usual to try and come up with some kind of game plan for the comming trading week. I'll try and not dwell on the recent losing GDX trade and missing out on the SPY puts this week. Europe and Asia finished higher to close out the trading week. It's Friday afternoon and time for a rest.

Continuing higher as the Dow was up 348 points on average volume. The advance/declines were better than 4 to 1 positive. The summation index is back to trending higher but remains in a sideways panel. The Dow was the leader today and that isn't the most bullish scenario. Retail sales came in lighter than expected. The S&P 500 was up and remains short term overbought but not extremely so. My guess here is that the S&P either morphs into a blow off top or we get another negative RSI divergence on the daily chart and we roll over. The up trend line from last November remains intact so the path of least resistance is higher. The big sell off on Tuesday has only been met with more buying. Not sure where the liquidity is coming from but we won't fight price. Remaining on the sidelines for now as we'll let expiration Friday pass. Gold was up a dozen on the futures. The US dollar was lower and interest rates finished flat. The XAU gained 3 1/4, while GDX added 3/4. Volume was good again to the upside. The bounce signal we were looking for from one of our indicators doesn't look like it will show up as the gold shares are already starting to move up. The short term indicators for GDX have started to move higher. Perhaps if GDX heads back down to the 26 level we'll try the March calls there. There is a down trend line on the GDX daily chart that comes in at around 27.75. Mentally I'm feeling OK. The VIX was lower today with some of the short term indicators now at mid-range. Not sure what to expect next here. We have seen the stock market come back in the past couple of days. Not sure if it is the next move to a new all time high or just something option expiration related. We'll know in the next few days. Asia and Europe were both up overnight. Inflation data out on expiration Friday so we'll close out the trading week on that.

Higher today as we did not see any downside follow through to yesterdays debacle. The Dow gained 151 points on light volume. The advance/declines were around 4 to 1 positive. The summation index is tracking sideways. The NASDAQ led the way up and that's a plus for the bulls. After todays price action we have to consider that yesterday was simply a one day wonder but we'll see how the rest of the week plays out. The long term up trend line in the S&P 500 from last November does remain intact. The short term indicators there have now turned back up as they have for most of the duration of the rally. The negative RSI divergence on the daily chart of the S&P may have played itself out in one day. We'll know more as the rest of the week goes on. Plenty of economic data out tomorrow with retail sales being the main event. On the sidelines for now with regards to the SPY trading. Gold fell $3 on the futures. The US dollar was a bit lower along with interest rates. The XAU and GDX had slight fractional gains on above average volume. We are waiting to see if one of our indicators gives a buy signal for GDX. If it does we'll try a bounce trade there. If not we'll look elsewhere. GDX remains short term oversold on the daily indicators and has been for quite some time. Mentally I'm feeling OK. The VIX was lower today which fits an up market. The short term technical indicators there have turned lower or are in the process of doing so. The VIX is implying that the selling is over but again we'll have to see how the rest of the week shapes up. A long weekend ahead in the US as well. More inflation data out on Friday along with option expiration. So it should be a busy final two days of this week. Asia was mixed and Europe up in last nights trade. We'll see how the markets react to the data tomorrow.

Inflation data came in higher than expected and the markets got clobbered as the Dow fell 524 points on good volume. The advance/declines were 12 to 1 negative. The summation index is back to trending lower but it is in a sideways channel. The NASDAQ led the way down. A last half hour rally brought the market back or it would have been worse. I did place another order overnight for the SPY February puts but it wasn't filled. I was thinking yesterday that perhaps this trade was missed and it was. The negative RSI divergence on the daily chart for the S&P 500 finally came to fruition. The S&P did manage to make it back to finish on the up trend line that began last November at the 4950 level. I don't think this level will hold though but we'll see. The short term indicators for the S&P have rolled over with room to go. The next area of support comes in at around 4800 or so. If we can somehow hang around here for a while, I'll try the SPY March puts. But markets go where thay want. Gold dropped $27 on the futures. The US dollar was higher along with interest rates. The XAU lost 6 7/8, while GDX fell 1 3/8. Volume was heavy in a rush to the exits. Yesterday I thought that the gold shares were about to rally and they simply continue to fall. There is an indicator that we look at on a longer term basis that is pretty reliable to spot a point when the gold shares will at least bounce. It hasn't gotten all the way there yet but if and when it does I'll be trying the GDX March calls for a short term trade. I also thought yesterday that all the bad news was out there for Barrick Gold but it sold off on its earnings report today. Mentally I'm feeling OK despite missing the SPY put trade. At least my idea there was correct unlike the recent GDX loss that was a disastor from the start. One thing for sure in the game is that you've always got to keep moving forward despite the results. The VIX had a huge spike higher and closed above its 200 day moving average. It would have been even higher had the market not made a late comeback out of nowhere. The short term indicators have moved up but are not completely overbought yet. Not sure what to expect here next but you can certainly make a case for higher VIX readings and lower stock prices. Three days left in the February option cycle ahead of a holiday weekend. I doubt that I'll be taking on any short term trades from here but who knows? What was open in Asia was generally higher while Europe was lower. We'll keep an eye on tonights developments.

A mixed bag today as the Dow rose 125 points on light volume. The advance/declines were better than 3 to 1 positive. The summation index is back to moving up. The overall market was weaker than the Dow. It was a one day reversal to the downside for the S&P 500. I did place an order for the SPY Feruary puts overnight but it wasn't filled. The S&P 500 remains short term overbought but today may have been the chance to try the puts. If we are higher tomorrow I may try this idea again but it could be too late. Inflation data out in the morning and that should be a market mover. I'm looking at the hourly chart on the S&P and if we get a high above todays high with a lower RSI reading I'll give the puts a try. But this would be strickly short term in nature as it's option expiration week. Gold was off $4 on the futures. The US dollar finished flat along with interest rates. The XAU was up 1 1/4, while GDX rose 1/3. Volume was below average. Gold shares up with gold down is a plus for the bulls as we haven't seen that for a while. Perhaps it is the beginning of a rally in GDX that I was looking for as it remains short term oversold. Barrick Gold reports earnings tomorrow and we've seen about all of the bad news from that stock lately. Mentally I'm feeling a bit concerned that I might have missed the SPY put trade. The VIX was up today. It rose a point even though we hardly had a market drop overall. The short term indicators have turned up. It could represent more near term weakness for stocks but we'll have to wait and see. Europe finished higher and most of Asia was closed for holiday. We'll see how it goes tomorrow.

The climb higher continued for the overall market but the Dow fell 54 points on average volume. The advance/declines were around 2 to 1 positive. The summation index is now tracking sideways. The NASDAQ led the way by far today and that's another plus for the bulls. We didn't see a big move in the overall market so the recent signal for that in the McClellan oscillator failed. The S&P 500 did get its close above the 5000 level though. Still short term overbought on the S&P with a potential negative divergence for the RSI on the daily chart. If we stay positive into Tuesday I'll try the SPY February puts. At least that's the idea before the weekend. My market prognosis hasn't been good lately as it appears that simply buying some SPY calls and holding them was the proper play. There's also the posibility that we see some kind of blow off top next week into the option expiration. Gold was off $8 on the futures to finish the week. The US dollar was a bit lower and interest rates remained steady. The XAU lost another 1 1/8, while GDX shed 1/3. Volume moved up to be about average.. I ended up selling my GDX February calls for a 95% loss. Even another breakout of violence in the Middle East probably wouldn't have saved this trade. A loser from the start and poorly managed once again. My market sense is off right now. Not a lot of money involved but it is the negative expending of the mental capital that holds you back. Your ideas need to fit the market narrative, not the other way around. I'll put this trade behind me and start fresh on Monday. Mentally I'm feeling OK all things considered. Losing trades are part of the game but they should not eat up 95% of the trade. Moving on is part of the deal too when it comes to this game. The VIX was up today which doesn't fit with an overall higher market. Not sure what that implies. I'll be checking the charts over the weekend as usual. Perhaps I'll consider moving into the GDX March calls as GDX is oversold and staying there. But there's time to consider things in the next couple of days this weekend. Much of Asia was closed and Europe ended the week slightly lower. It's Friday afternoon and time for a break.

More of the same today as we seem to be waiting for a close above the 5000 level on the S&P 500. The Dow added 49 points on average volume. The advance/declines were positive. The summation index is now trying to move sideways. The NASDAQ was the leader today but all the gains were small. We did get a signal last night on the McClellan oscillator for a big move within the next two sessions. We'll see if that pans out tomorrow. There doesn't seem to be any sellers around for now. Still considering the SPY February puts some time before expiration Friday on the 16th. Gold was lower by a couple bucks on the futures. The US dollar finished flat and interest rates ticked higher. The XAU fell 1 1/8, while GDX was off over 1/8. Volume remains very light here. GDX remains short term oversold but not at extremes. My GDX February calls are now 90% losers. Looks like no cutting that loss now. I'll hold on to them over the weekend in case the Middle East heats up but that's about it. No saving this bad trade though. Mentally I'm feeling OK. The VIX was slightly lower and remains short term oversold. We've got the lunar new year coming up in Asia so some of those markets will be closed going forward from here for around a week. Mainly affects China. Europe and Asia finished mixed overnight. We'll close out the week tomorrow.

The market seems like it just wants to keep going up as the Dow gained 156 points on strong volume. The advance/declines were barely positive. The summation index is still trending lower. The NASDAQ led things higher today. The S&P 500 remains in the same short term overbought technical condition. It is on the cusp of closing at or above the 5000 level for the first time. Markets can stay overbought longer than you can stay solvent is one familiar saying for times like these. The breadth here though is lacking for a market moving higher. I'm not giving up on the SPY February put idea but will wait for a valid signal. The NASDAQ is on its way but still hasn't made it to a new all time high. Gold finished flat on the session after being a bit higher early on. The US dollar was lower and interest rates remained steady. The XAU slipped 1 1/4, while GDX lost 1/4. Volume was very light again as there is no interest in this sector right now. My GDX February calls continue to lose ground and are on the way to being an eighty to ninety percent loss unless some buying comes out of the woodwork. Still hanging around the 27.5 support so there is some hope of cutting the loss to something more manageable. But this trade was a loser from the beginning and should have been dumped right away. One of the drawbacks now is being stuck in this negative position while other opportunities are out there. But I'll eventually move on like I always do. Mentally I'm feeling OK. The VIX continued lower and is now below its 50 day moving average. The short term indicators continue to slide and they aren't extremely oversold yet. The VIX still implies higher stock prices to come. It is one reason to hold off on the SPY puts for now. Asia was mixed and Europe lower overnight. We'll keep an eye on the overnight headlines.

Kind of hanging around today as the Dow managed a gain of 141 points on better than average volume. The advance/declines were north of 2 to 1 positive. The summation index is still trending lower. The Dow was in the lead once again. The S&P 500 remains short term overbought with its potential negative divergences. We are in a waiting game to try and attempt the SPY February puts. A nice light volume rally from here would do the trick. The market rarely cooperates. Gold was up $9 on the futures. The US dollar was lower along with interest rates. The XAU was up 1 3/8, while GDX added 1/3. Volume was extremely light as there isn't any real interest in owning gold or the gold shares at the moment. My GDX February calls remain mired in the red and we're running out of time in the February option cycle. I don't think that this trade will be saved by some kind of rally in gold so we are in cut the loss mode. Mentally I'm feeling OK. The VIX was lower which fits with todays market action. The short term indicators are now heading south with room to go which implies more near term gains for stocks. We'll see. Asia was mixed and Europe higher in last nights trade. We'll see what tomorrow brings.

Some selling to begin the week as the Dow fell 274 points on average volume. The advance/declines were 4 to 1 negative. The summation index is now moving down. The Dow led the way lower and that isn't the most bearish scenario. The S&P 500 remains short term overbought with a potential negative RSI divergence on the daily chart. Not much on the economic calendar this week but plenty of earnings. Some Fed speak as well. I still would like to try the SPY February puts at some point before option expiration on the 16th. But we'll wait to see a clear signal first if one shows up. Gold dropped a dozen on the futures. The US dollar was higher along with interest rates. The gold shares fell as the XAU lost over 2 1/2, while GDX shed 2/3. Volume was average. My GDX February calls are solid losers and this trade is in a cut the loss mode at this point. Renewed Middle East tension over the weekend couldn't help the precious metal. A rising dollar along with higher interest rates isn't a help for the gold bulls as well. GDX closed below the important level of 27.5. I don't think anything can save this trade from being a loser. Mentally I'm feeling OK. The VIX was lower today which doesn't fit with a down market. The short term indicators remain mid-range. Europe and Asia were lower with the exception of Japan. We'll keep an eye on the overnight developments.

Tech earnings and a surprisingly robust jobs report were met with buying today as the Dow gained 134 points on average volume. The advance/declines were 2 to 1 negative. The summation index continues sideways. I thought that the jobs report could be a non-event and it wasn't. Big tech earnings, besides Apple, were met with glee. The NASDAQ led the way higher by far. New all time highs for the S&P 500. There is another short term potential negative RSI divergence there on the daily chart. But potential doesn't mean that it will be valid. However the weak breadth today doesn't have me believing that we will be going much higher without some kind of pause. Still might try the SPY February puts at some point before option expiration. But for now the bulls are in charge. Gold dropped $17 on the futures. The US dollar was higher and interest rates were lower. The gold shares got whacked with the XAU losing 3 1/2, while GDX lost a point. Volume was heavy to the downside in a complete reversal of yesterdays gains. I did place an order for the GDX February calls overnight and it was filled at the open. I thought that if perhaps GDX pulled back I could get in to try the calls. What I didn't expect was such a huge move lower. The position is already showing a loss. The entry timing was horrible. The only saving grace for now is that GDX did manage to stay above the support at 27.5. The short term indicators for GDX are mid-range and pointing down. Unless we see a turnaround back up early next week this trade will be a loser. Mentally I'm feeling a bit frustrated as trying this GDX trade was perhaps not the best thing to do. There wasn't a clear signal to base the trade off of after yesterdays price action. Patience perhaps could have been rewarded but it's too late now. The VIX finished flat and we would expect it to movve lower on a strong session like today. The technical indicators for the short term remain at the mid-range level. Not sure what to expect next here for the VIX. We are seeing a narrow leadership rally for stocks. I'm not sure that it can last that much longer but I could be wrong and often am. You cannot argue with price. If the S&P continues to climb and we get a sell signal I'll try the SPY February puts. We'll hold the GDX trade at least in the beginning of next week but we'll have to see buyers there for it to have a chance. I'll go over the charts this weekend to try and be ready for whatever next week brings. Europe and Asia finished generally higher to close the week. It's Friday afternoon and time for a break.

Powering back to the upside as the Dow gained 369 points on good volume. The advance/declines were better than 3 to 1 positive. The summation index is moving sideways. Yesterday now seems like a blip on the radar as the market wants to go higher. Not sure where the liquidity is coming from but we can't argue with price. But we'll see what happens tomorrow. The short term indicators for the S&P have turned back up. We thought that it would be a short window for the SPY February puts and it looks like it was. But we may like that idea again as the February option cycle moves on. I will try and wait for a decent signal though if one shows up. We will watch and wait for now. Gold was up $5 on the futures. The US dollar was lower along with interest rates. The gold shares came to life. The XAU was up 4, while GDX gained over a point. Volume was heavy to the upside. I canceled my open order for the GDX February calls but this may be a move worth chasing. Bonds and gold are now seeing a flight to safety on the possibility of more Middle East turmoil, this time involving the US. The short term indicators for GDX on a daily basis have moved higher with room to go. So I might place an order over night and see if it gets filled in the morning. The problem is that one of our short term timing models for GDX is already overbought and we would rather see that pull back before trying the calls. Mentally I'm feeling OK. The VIX was lower today which fits with an up market. The short term indicators here are now mid-range. The VIX did reach its upper Bollinger band in the past couple of sessions so perhaps it's ready to trend lower now. No good signal on the VIX at the moment. We've got the jobs report tomorrow and unless it is a big surprise it may not have the usual effect since we've already had the Fed put a damper on any kind of near term rate cut. But we'll see. Both Europe and Asia were lower overnight. We'll close out the trading week tomorrow.