A mixed bag to begin the week as the Dow fell 196 points on light volume. The advance/declines were about even. The summation index is moving up. The NASDAQ finished higher on the day while the S&P 500 was flat. The S&P remains short term overbought as do most of the major stock indices. Not a lot of economic data out this week and there's an extra week in the June option cycle. With that in mind we'll be on the sidelines with regards to the SPY until we get some kind of signal either way. Gold was up $16 on the futures. The US dollar was higher along with interest rates. The XAU gained 2 1/8 and GDX rose 3/8. Volume was a bit above average. Short term overbought here as well and we are not interested in trying the GDX puts. We'll have to wait for GDX to get back to oversold and that might take a while. So again, patience will be required and we'll have to wait on the markets. We are not going to try and force things as that will most likely lead to losing trades. Mentally I'm feeling OK. The VIX was up slightly and continues to be short term oversold. It has been a lenghty stay in the short term oversold region for the VIX and this will not last forever. However trying to determine when it will end is virtually impossible. We'll keep an eye on things. Europe and Asia were higher to start the week. I'll keep watch on the overnight headlines.