Volatility returned early on today and the Dow fell 66 points on pretty heavy volume. The advance/declines were slightly positive. The summation index continues higher. The NASDAQ had a slight loss and the S&P 500 was unchanged. The employment report came in better than expected and that got things moving up and down. There was a gap higher at the open which immediately turned around into a modest loss. The rest of the day was spent in a sideways drift. The short term indicators for the S&P have begun to stall. Next up will be the inflation report on Friday to contend with. I still think that the S&P will be hitting a new all time high soon. Gold was up $81 on the futures. The US dollar finished slighly higher and interest rates were up. The XAU gained over 10 points, while GDX added 3. Volume was average. The short term indicators for GDX are moving up with room to go. My open order for the GDX February calls was filled. It is showing a modest loss. It now looks like this idea was past its time as the technical picture for GDX appears now to be positive. Perhaps it was one of those ideas that I fell in love with and didn't let go. I would like to give it until Friday before bailing out but we'll have to see how tomorrow goes first. Mentally I'm feeling OK. The VIX was just a bit lower today. The short term indicators here are moving sideways. Appears as though it could go either way here. The overall technical picture for the stock market is not as clear as I'd like it to be. Six days remain in the February option cycle. Asia was generally higher and Europe generally lower overnight. I'll keep an eye on tonights headlines.

Another mixed pictire today as the Dow rose 52 points on heavy volume. The advance/declines were positive. The summation index is moving higher. The market was trending sideways before dropping late in the day. Both the NASDAQ and S&P 500 posted modest losses with the NASDAQ leading the way lower. Not exactly sure why the late exit from stocks but perhaps a bit of fear ahead of tomorrows jobs report. Some of the short term indicators for the S&P 500 are beginning to stall. I remain in the bullish camp here though and expect new all time highs for the S&P soon. I would change my mind if we see some kind of sharp downside price action tomorrow but I do not think that is in the cards. Gold was off $26 on the futures. The US dollar finished little changed and interest rates dropped. The XAU added 3 points and GDX was up an 1/8 or so. Volume was light. The gold shares did better than gold itself and we haven't seen that lately. The short term indicators for GDX are beginning to stall at mid-range. I did place an order overnight for the GDX February puts again and I'm leaving it out there. Not sure it will get filled as there is a very wide spread in the strike price that I'm trying to buy. We'll see what happens tomorrow. Mentally I'm feeling OK. The VIX was a bit higher today and that fits with todays overall price action. The short term indicators here didn't move much. It's all about the employment report tomorrow. I don't know what to expect from that but the market reaction will tell the story. Asia was up and Europe slightly lower overnight. We'll keep an eye on tonights developments ahead of tomorrows data.

We did see some upside follow through to Fridays huge gains but the Dow only managed a gain of 20 points on heavy volume. The advance/declines were positive. The summation index is trying to move higher. The NASDAQ was by far the leader today and that is a plus for the bulls. The S&P 500 is poised to make a new all time high. The short term indicators there are now trending higher with room to go. Plenty of earnings and economic data due this week so there will be excuses for market movement. I'm in the bullish camp for now regarding the S&P. Gold was up $123 on the futures to close back above the $5000 level. The US dollar was lower and interest rates finished little changed. The XAU gained almost 23 points and GDX was up 5 1/2. Volume was above average to the upside. Has the decline for gold and the gold shares ended already? That is the question we are dealing with. The short term indicators for GDX are now moving higher with room to go. I'm still considering the GDX February puts and will think about putting in a overnight order for them. But we also have to consider the possiblity that the sharp decline we saw a week ago may be it for the downside as the parabolic move higher stalled. As usual the trading is never easy. Mentally I'm feeling OK. The VIX was lower today which fits an up market. The short term indicators here are trending lower and not yet oversold. The VIX seems to be supporting higher stock prices going forward for now. Asia and Europe were higher to begin the week as global funds return to stocks. We'll see how things go tomorrow.

Stocks exploded to the upside today with the Dow closing above the 50000 level for the first time. The Dow gained 1207 points on heavy volume. The advance/declines were 4 to 1 positive. The summation index has now turned back up but is still in a sideways configuration. Yesterday looked like the market was going to fall apart and today it seems there is no stopping it to the upside. Perhaps the idea of the SPY calls was simply a day too early. However we are always wary when rallies appear out of nowhere, especially in what was considered a weak market. The Dow was the best performer today but all the major indices had stellar gains. The short term indicators for the S&P 500 have turned back up. We are going to have to look things over this weekend to decide where we're going next. Gold was up $87 on the futures. The US dollar was weaker and interest rates finished flat. The gold shares followed the overall market higher. The XAU gained 19 1/4, while GDX added 5 points. Volume was lighter than it has been. The short term indicators for GDX are still in oversold territory but they are trying to move up. I'm still considering trying the GDX February puts but this will also be something that needs a closer look over the weekend. Mentally I'm feeling OK. The VIX sank with the rise in stocks and is back below the 20 level. The short term indicators here are moving down. It could be that the decline for stocks is over for now but we'll know more about that in the coming week. We'll get the late jobs report and some inflation data. There will be plenty of charts to check over this weekend as we try and figure out the next trade. Still two weeks to go in the February option cycle less one day for a holiday. Asia was mixed and Europe higher to finish off the week overseas. It's Friday afternoon and time for a break.

Sellers have taken control as the Dow fell 593 points on very heavy volume. The advance/declines were 2 to 1 negative. The summation index is beginning to move lower. Not sure what's going on here but we cannot argue with price. Once again the NASDAQ led the way lower and that's a negative which it has been for a while. I was leaning towards the SPY calls but that thought was wrong. The short term indicators for the S&P are moving down and it closed below its 50 day moving average. The short term up trend line here has now been broken. Things could get ugly before they get better. Gold dropped $118 on the futures. The US dollar was higher and interest rates dropped in a flight to bonds. The gold shares got whacked. The XAU fell almost 25 points and GDX lost6 1/3. Volume remains heavy. It appears that the early week bounce for the gold shares is all that we are going to get, which makes it too late for the GDX February puts. Unless we see some kind of dramatic turnaround higher tomorrow in the precious metals. Some of the gold stocks have already lost over 20%. Looks like just another missed opportunity. Mentally I'm feeling OK. The VIX was up today and closed above the 20 level. Volatility has returned. The short term indicators here are now moving up with conviction and are almost short term overbought. Lower stock prices seem to be the future going forward. Perhaps we'll look for a bounce out of nowhere to try the SPY puts but it is most likely too late for that. We never got a clear signal for direction but the action of the market recently was puzzling. We now know it was a precursor to lower prices. Tomorrow should be interesting. Asia and Europe were genrally lower overnight. We'll close out the trading week tomorrow.

A mixed bag today as the Dow gained 260 points on very heavy volume. The advance/declines were positive. The summation index is moving sideways. We got a signal last night from the McClellan oscillator for a big move with the next two sessions and todays drop in the NASDAQ qualifies that. Both the NASDAQ and S&P 500 posted losses on the session, with the NASDAQ once again leading the way lower. It is hard to have a positive outlook going forward with the NASDAQ down in the dumps. The short term indicators for the S&P are still trending lower and are at the mid-range level. Sellers have the upper hand for now. Gold was up $29 on the futures. The US dollar was higher and interest rates finished flat again. The XAU was off 7/8 and GDX rose 1/2. Volume remains good here. The short term indicators for GDX are starting to trend sideways. We still like the idea of trying the GDX February puts going forward. Mentally I'm feeling OK. The VIX was higher today. The indicators here are still tracking higher but without any conviction. Got above the 20 level again but then fell back. Again, we are getting a mixed picture from the indicators when it applies to the SPY right now so we are waiting for a solid signal one way or the other. There is still plenty of time in the February option cycle to put on a trade with regards to the SPY. Remaining patient for now. I'm leaning towards the calls. Asia and Europe were higher except for the NIKK and the DAX. I'll keep an eye on the overnight headlines.

We had the return of volatility today as the Dow fell 166 points on very heavy volume. The advance/declines were slightly positive. The summation index continues to track sideways. It was a one day downside reversal for most indices as stocks opened higher and closed lower. Once again the NASDAQ led the way lower and that's a negative. The S&P 500 dropped almost sixty points. The short term indicators there are now moving lower. It did bounce off of the 50 day moving average though. I do not think we are in for a big drop here right away but I could be wrong. We are still waiting for a signal to trade the SPY options. Gold had a much needed bounce today as the futures gained $310. The US dollar was a bit lower and interest rates finished flat. The XAU rose over 17 1/2, while GDX added 4. Volume remains pretty heavy here. Some of the short term indicators for GDX have begun to turn up. This is a start to the bounce we are looking for in order to try and get the GDX February puts again. Ideally this would occur at around the 105 level for GDX if it can make it back that far. We'll see. Mentally I'm feeling OK. The VIX shot higher today before falling back below the 20 level. The short term indicators here are now pointing higher. It appears that volatility has made a comeback which means that the trading has to be quite nimble to be successful. I don't have a good handle on the SPY right now so we will have to sit things out there. I do favor the GDX puts again at some point before the February option expiration. However we will remain patient for now. Asia was higher and Europe slightly lower overnight. I'll keep an eye on tonights developments.

Higher prices to begin the week as the Dow gained 515 points on heavy volume. The advance/declines were positive. The summation index continues sideways. The Dow led the way today and that isn't the most bullish scenario. Both the NASDAQ and S&P 500 posted modest gains. Most of the short term indicators remain overbought for the S&P. Not sure where it is heading next but it is on the cusp of a new all time high. We were waiting for Fridays jobs report but it now is delayed due to another Federal government shut down. Not sure when it will be coming out. Waiting on the next signal for trading the SPY options. Gold dropped $62 on the futures. The US dollar was higher along with interest rates. The XAU was off 1 1/2 and GDX lost 1/4. Volume remains heavy here. The short term indicators for GDX are still moving down with some already oversold. We are waiting for a bounce in the gold shares to try the GDX February puts. The gold shares lost around 17% from the high to the low in two days to end last week. Hoping for some kind of bounce off of that but we may just see a grind lower as well. Not expecting gold itself to make it back the the all time high anytime soon. Mentally I'm feeling OK. The VIX was lower today and the daily candlestick chart looks like it wants to go lower. The short term indicators here are now heading down. This would bode well for stocks in the near term but we'll have to wait and see. Really need to see the NASDAQ get going to the upside for the bulls to be in charge. Europe was higher and Asia lower with the exception of India to begin the week. We'll see how things go tomorrow.

We saw some selling to end the month of January as the Dow fell 179 points on very heavy volume. The advance/declines were negative. The summation index is still in a sideways pattern. The NASDAQ led the way lower again and that is not a positive. The S&P 500 had a modest loss but again finished off of the worst levels on the session. The short term indicators here are rolling over but some remain in overbought territory. The question is are they rolling over to start a significant decline or are we going to bounce back to new all time highs? The NASDAQ daily chart has a more bearish look to it and is usually the leader. I'll ponder the possibilities this weekend. Gold got beaten to death as players headed to the exits. The gold futures lost $470 today to close back below $5000. Silver fell over 25%. In one day. The parabolic moves never end well. They are violent on the upside and equally severe going down. Take a look at the gold or silver weekly and monthly candlestick charts to get a view. My guess is that there will be more downside to follow. We will still be looking at the GDX puts on any near term rally before the February option expiration. The US dollar was higher and interest rates finished mixed. The XAU lost over 54 points and GDX fell 13 3/4. Volume exploded to the downside for the busiest day in years. This is what happens when everybody is trying to get out at the same time. The short term indicators for GDX are heading lower with some already oversold. We will try the GDX February puts on any bounce. Is it possible that gold and silver turn back up and head to new highs soon? I sincerely doubt it. Mentally I'm having mixed feelings. It was good that we were at least on the right track with regards to the gold shares. However not getting filled on the put orders means that the right adjustments were not made and we missed out on what would have been a profitable trade. There are no moral victories in this game. We are here to make money and it is as simple as that. The VIX was higher again which fits a down market. The short term indicators are trending higher with room to go. However there is no conviction with the way they are moving at the moment. Not sure what that means. Asia was lower and Europe higher to close out the week. I'll be checking the charts this weekend as usual. It's Friday afternoon and time for a break.

Volatility made a comeback today but the Dow managed a gain of 56 points on very heavy volume. The advance/declines were positive. The summation index is still tracking sideways. The NASDAQ led the way down for most major indices but came up from the lows of the session. The S&P 500 was down over 100 points during the day but came back to post only a small loss. Most of its short term indicators remain overbought. Not sure what to expect next here as the short term sell signal that we received may have run its course after todays price action. The option premiums for SPY remain elevated. Gold got whipped around like the stock market today but the futures ended with a gain of $80. The US dollar closed a bit lower as did interest rates. The XAU fell over 14 points and GDX lost 4 1/2. Volume was extremely heavy here on a one day downside reversal. My open order for the GDX February puts didn't get filled and I adjusted it a couple of times early this morning to no avail so I canceled the order. The premiums for the GDX puts did not go lower even when GDX itself was making new highs. That usually never happens but it was a tip off that the market makers knew something that we didn't. The short term indicators remain overbought for GDX. I still like the idea of the February puts for GDX but will wait to see if it trys to reach the near term highs again. As I have said before both gold and silver have gone parabolic and that condition cannot last. There's plenty of time left in the February option cycle with three weeks to go. Might place another open order for the GDX February puts overnight. Mentally I'm feeling OK. The VIX was higher today but again retreated from the best levels on the session. The short term indicators here are turning up. Once again I'm not sure where this indicator goes next. Asia was higher and Europe little changed with the exception of the DAX which lost 2%. End of the month tomorrow.

The Fed came and went but there weren't any fireworks as the market traded sideways for much of the day. The Dow rose a dozen points on heavy volume. The advance/declines were negative. The summation index is beginning to trend flat. The NASDAQ posted a slight gain and the S&P 500 ended the day basically unchanged. We got a signal last night from the McClellan oscillator for a big move within the next two sessions. We'll see if that pans out tomorrow. The S&P 500 touched 7000 for the first time but did not close there. Some of its short term indicators have reached overbought territory. The short term sell signal on one of our indicators remains in place. We've got some tech earnings coming in after the bell and that may get things going one way or the other. On the sidelines regarding the SPY options for now. Gold blasted off $290 higher on the futures today. The US dollar was a bit higher along with interest rates. The gold shares were up but they didn't have as big an advance as gold itself. The XAU was higher by 10 1/2, while GDX added 2 7/8. Volume remains good to the upside. I thought that my open order for the GDX February puts would get hit today but it wasn't. I'm leaving it out there at the price I'm willing to risk on this idea. Maybe it will get filled tomorrow or maybe I'll cancel it. Gold is moving straight up and that cannot last forever. Overdue for a pullback or at least some kind of rest for the precious metals but buyers show up on any dip for now. Mentally I'm feeling OK. The VIX was unchanged on the session but down from its best levels. The short term indicators here are tracking sideways. The daily chart now looks like it wants to go lower from here which would be a positive for stocks. However with the sideways indicator readings for the VIX things really could go either way here. I'm certainly not sure and that's another reason why we are waiting on the next SPY option trade. Asia up and Europe down overnight. I'll keep an eye on tonights headlines.

Somewhat of a mixed picture today as the Dow fell 409 points on heavy volume. The advance/declines were higher. The summation index is still moving higher. Much of the Dow loss can be attributed to the steep drop in UNH. Both the NASDAQ and S&P 500 posted decent gains with the NASDAQ leading the way higher. The S&P closed at a new all time high. The short term indicators there are still moving higher with some already overbought. We are getting a short term sell signal on the S&P from one of our indicators but I'm holding off on the SPY February puts for now. Option premiums here remain high. Gold was up $90 on the futures. The US dollar got crushed today which helped support gold. Interest rates were little changed or slightly higher. The gold shares had a one day upside reversal as they opened lower and closed higher. The XAU rose 4 1/3 and GDX was up around 1 3/4. Volume was good. The short term indicators for GDX remain overbought. I've still got my open order for the GDX February puts out there but will reconsider this idea tonight. The negative action in the US dollar today could be a cause for concern and drive gold higher instead of turning around here as I thought. As usual, the trading is never easy. Mentally I'm feeling OK. The VIX was up a bit today and the short term indicators here are trending sideways. The daily candlestick chart has the look like it wants to go higher which would not bode well for stocks. We'll see. The Fed is on tap tomorrow but that seems to be in the background which hasn't happened for a while. We still expect no change in rates as does the rest of the world. All eyes and ears on what the chairman has to say after that. Asia and Europe were higher with the exception of the DAX. We'll see what tomorrow brings.

A positive start to the week for stocks as the Dow gained 313 points on heavy volume. The advance/declines were barely positive. The summation index is still trending up. The Dow was the leader today and that isn't the most bullish outcome but we'll take the gains. The short term indicators for the S&P 500 are moving higher with room to go. We are almost at a short term sell signal there ahead of the Fed on Wednesday. Option premiums remain high though. Not sure if we are going to try the SPY February puts here. Gold rallied over the $5000 mark as the futures were up sixty bucks. The US dollar was lower along with interest rates. The XAU was up 1 3/4, while GDX added around 1/2. Volume was heavy for the gold shares as they fell back from the best levels on the session. My open order for the GDX February puts wasn't filled in the morning when the gold shares soared. It certainly should have been filled in my mind. The fact that it didn't get filled lets us know that the market makers know more than we do as the put premiums remained high despite the move up in the gold shares. It tells me that the GDX puts should work here as the gold shares remian overbought and have gone parabolic. I'm leaving my open order out there and we'll see if GDX trys to make it back to the high of today. Mentally I'm feeling OK. The VIX finished flat today. The short term indicators here are starting to trend sideways. They are not yet oversold. Not sure what comes next here for the VIX but if the indicators start to move up we'll be in for a decline. That would be even more compelling for the GDX put trade or the SPY puts. But it hasn't happened yet. Geo-political tensions remain in the background with the Fed on Wednesday as the possible main event. We don't expect any change in interest rates but the speech after the announcement may be the catalyst. Asia was generally lower and Europe higher to begin the trading week. I'll keep an eye on the overnight developments.

A mixed bag today as the Dow fell 285 points on good volume. The advance/declines were negative. The summation index is still moving up. The NASDAQ posted a slight gain and the S&P 500 finished around unchanged. The short term indicators for the S&P are beginning to stall. We've got the Fed next week and the backdrop of waiting for the next headline out of Washington. My guess would be that we are on our way to a new all time high in the S&P 500 but that isn't etched in stone. SPY option premiums remain high. Gold was up $66 on the futures to close at a new all time high on its way to $5000. The US dollar took a big hit and interest rates were slightly lower. The XAU was up 8 1/3 and GDX added 1 7/8. Volume was slightly below average. GDX remains short term overbought as it has been for a couple of weeks. My open order for the GDX February puts remains out there as I moved the strike price on the ticket. We'll see what happens over the weekend and go from there. The lower US dollar is a boost for gold so perhaps this idea for the puts is not best one at this time. I'll reconsider over the next couple of days. Mentally I'm feeling OK. The VIX was a bit higher today. Some of its short term indicators are beginning to track sideways. Not exactly sure what's next for this indicator. After a rough start to the short week stocks turned around and finished higher. I'm not sure if it is the beginning of a new leg higher for the S&P or a snapback to the broken short term up trend line. We'll probably know the answer next week. I'll be going over the charts this weekend to try and come up with a game plan moving forward. Asia was higher on Friday with the exception of India and Europe finished mixed. It's Friday afternoon and time for a break.

Moving higher as the Dow gained 306 points on heavy volume. The advance/declines were positive. The summation index is moving up. The NASDAQ led the way higher today and that's a plus. The S&P 500 posted a decent gain and some of the indicators there continue to move higher. Not overbought or oversold there. It still feels like the market remains at the mercy of the next headline. Gold was up $83 on the futures. The US dollar was lower and interest rates finished flat. The XAU gained 15 1/2, while GDX added over 3 3/4. Volume is still above average to the upside. GDX remains short term overbought and staying there. I did place an overnight order for the GDX February puts but it did not get filled. I'm leaving it out there overnight but might change my mind. Perhaps move to a different strike price or cancel the order altogether. Gold looks like it wants to travel to the $5000 level and it is almost there. Gold and silver are extremly overbought on all timeframes along with parabolic moves higher on the weekly and monthly charts. It is a fools game to try and pick the top for these two which is why I might just cancel my order for the GDX puts. We'll see. I also may just wait to try this idea at some point next week ahead of the Fed announcement. Mentally I'm feeling OK. The VIX was lower today with its short term indicators heading down with room to go. Tuesdays decline in stocks seems to be in the rear view mirror. Not sure how this week will close out. It's earnings season but that seems to be in the background for now. ASia and Europe were higher overnight. I'll keep an eye on this evenings headlines.

Back to the upside today as we enter a whipsawed world for now. The Dow gained 588 points on heavy volume. The advance/declines were shy of 4 to 1 positive. The summation index is heading back up. Now we won't have new tariffs as we are at the mercy of the next headline or sound bite. It makes the trading environment even tougher than it already is. We are not thinking that this is the end of the world as the market is in a seasonal good period for stocks. The fact that the TRAN has recently reached a new all time closing high to finally follow the Dow is longer term plus. On a shorter term basis some of the indicators for the S&P 500 have turned back up. Options premiums remain high. Still waiting on a decent signal for the next trade. However at the moment you've got to take profits when you get them because of the increase in volatility. Gold was up $58 on the futures. The US dollar was slightly higher and interest rates dipped just a bit. The XAU was down five points, while GDX dropped 1 1/2. Volume was good. Gold up and the gold shares down isn't bullish. GDX remains short term overbought. I would think that a short term trade with the GDX February puts might work here. However with the current unabated strength in gold right now it may not be worth the risk. We'll look at it tonight. Mentally I'm feeling OK. The VIX dropped today and that fits the upside in stocks. The short term indicators here moved lower and some already have made it down to mid-range. It makes it appear that yesterdays decline was simply a one day wonder. Time will tell on that. Europe and Asia finished mixed overnight. We'll see what tomorrow brings.

Tariff tantrums return as the Dow fell 870 points on heavy volume. The advance/declines were better than 3 to 1 negative. The summation index is begining to stall. The NASDAQ led the way down and that's negative. We had a big gap down at the open for stocks and continued lower from there. The short term up trend line for the S&P 500 has been broken. The short term indicators there are moving down with room to go although some are already oversold. Support could come in at 6700 or 6600 but we don't know at this point. It might be a lot lower. The market is at the mercy now of the next headline and that is a risky game to play. Option premiums have also gone up with the increase in volatility. Not exactly sure what our next trade will be. Gold took off to the upside as haven demand increased. The yellow metal was up $166 on the futures. The US dollar sank while interest rates continue to rise. The XAU jumped over twenty points and GDX climbed 5 1/2. Volume was good to the upside. GDX is overbought, extremely so and showing no signs of slowing down. Money simply continues to find a home here. Mentally I'm feeling OK. The VIX took off to the upside and closed above the 20 level. The short term indicators there are now overbought but not completely. It appears that stocks could be in for wild ride this week. We are looking at both the puts and the calls for the SPY. But the better approach might be staying on the sidelines and waiting for a legitimate technical signal. We'll see. Asia and Europe were lower as players head for the exits. I'll keep an eye on the overnight developments.

A day of hanging around on expiration Friday as the Dow fell 83 points on heavy volume. The advance/declines were negative. The summation index is moving up. Minor losses were posted by the major averages. The short term indicators for the S&P are still heading sideways. Rolling into the February option cycle which has an extra week in it. A holiday weekend here in the US as well. We are waiting for the next signal to put on the next trade. Gold dropped $35 on the futures. The US dollar finished little changed and interest rates continue to rise. The XAU and GDX had fractional moves higher on about average volume. The indicators for GDX simply remain overbought. Mentally I'm feeling OK. The VIX ended the day flat. The short term indicators here are still mid-range. So the VIX remains in a position of implying that things could go either way. I'll be going over the charts during the long weekend as usual. Sometimes you have to remain patient in the game while awaiting the next perceived opportunity. That is the position that we are in now. It isn't always easy to wait but it is better than trying to force things. Markets go where they want. Europe and Asia were down with the exception of India. It's Friday afternoon and time for a break.

Some upside today but the market did fall from its best levels on the session. The Dow gained 292 points on heavy volume. The advance/declines were 2 to 1 positive. The summation index is moving up. The Dow was the leader again today and that isn't the most bullish scenario. It appears that my idea of the Dow reaching 50000 and the S&P hitting 7000 before option expiration isn't going to happen. The NASDAQ and S&P only had slight gains today. The short term indicators for the S&P 500 are starting to move sideways. We'll get through the expiration tomorrow ahead of a long weekend with Monday being a holiday in the US. Moving into the February option cycle and we'll see what we can do with that. Waiting on the next decent technical signal. Gold dipped $26 on the futures. The US dollar was higher along with interest rates. The XAU was up 1 3/8, while GDX rose about 1/4. Volume was light. GDX is overbought, staying that way and might be for a while. I suppose we could wait and see if it makes it back to the up trend line that began six months ago but that may not happen. All declines here are being bought. Mentally I'm feeling OK. The VIX was down today and some of the short term indicators have now moved lower. Most of the short term indicators here are mid-range or near that level. So where the VIX heads next is up in the air. I'm going to let expiration Friday go by and we'll take it from there. Asia was mostly lower and Europe mixed overnight. We'll close out the trading week tomorrow.

Lower overall today but the Dow only dropped 42 points on heavy volume. The advance/declines were positive. The summation index is moving up. The inflation data was a bit higher than expected. The NASDAQ led the way down today off 1%. The S&P 500 posted a modest loss but did come back from the lows on the session. The short term indicators there have now rolled over from overbought territory. The short term up trend line for the S&P is still intact although we did reach down to touch it today. The market did not cooperate with the set up we preferred for the purchase of the SPY January puts so we will have to put that idea to rest. With only a couple of days left until option expiration the risk is too high and the time for that idea has probably passed. That doesn't mean that we can't go lower in the following sessions but we probalby should not going to risk any money on it. Gold was up $37 on the futures. The US dollar finished flat and interest rates dipped. The XAU added 1 1/8 and GDX was up around 1/3 on average volume. GDX simply continues to remain short term overbought. Mentally I'm feeling OK. The VIX was up today but came off of its best levels. Most of the short term indicators are still moving up which still implies more selling in the near term. The problem here is that we are running out of time for the January options. The prudent course of action would be to roll into the February option cycle which has an extra week in it. Asia was generally higher and Europe generally lower overnight. We'll keep an eye on the overnight headlines.

The Dow took a hit today as it fell 398 points on heavy volume. The advance/declines were slightly positive. The summation index continues higher. The inflation data came in where expected with more due tomorrow. The S&P 500 and NASDAQ posted small losses. This means our idea of buying the SPY puts is in jeopardy but we'll see how tomorrow plays out. The S&P 500 remains short term overbought. We still might try the SPY January puts on strength tomorrow or perhaps wait until Thursday. But the risk may not be worth it. Gold was off a dozen on the futures. The US dollar finished flat and interest rates were barely lower. The XAU was up 3 2/3, while GDX added 3/4 on about average volume. GDX continues to be short term overbought. Mentally I'm feeling OK. The VIX was higher today. The short term indicators here are now moving up which implies more near term selling for stocks. Not yet overbought for GDX but some of the indicators are close. Which means that any attempt at buying the SPY January puts has to be a strictly short term trade and shorter than the three days remaining on those contracts. Or perhaps we should simply pass on this idea. I'll ponder it overnight. Asia and Europe finished mixed overnight. We'll see what tomorrow brings.

The week starts with a dramatic one day upside reversal as stocks opened with a big gap lower only to come all the way back to close in positive territory. The Dow rose 86 points on heavy volume. The advance/declines were positive. The summation index continues higher. The NASDAQ and S&P 500 had modest gains. New highs for the Dow and S&P. The S&P remains short term overbought but still not completely. I did place an order overnight for the SPY January puts as the futures were weak. However I canceled it during the morning when it was obvious that the market was not about to tank. We are still considering getting the SPY puts if we continue to see strength into Wednesday morning. Inflation data due out the next couple of days. Not sure what the reaction will be as some of the numbers are old due to the US government shutdown. Gold was up over $100 on the futures today as uncertainty and geo-political tensions are still center stage. The US dollar was lower and interest rates finished little changed. The XAU was up about 14 points and GDX climbed 3 1/4. New highs for both. Volume was good to the upside. GDX is short term overbought and staying there. Obviously owning the GDX calls here was the way to go. This was once again a move that should have been chased. Mentally I'm feeling OK. The VIX was higher today which doesn't fit an up market. Still mid-range on the short term indicators which means things could go either way. It is possible that we will see the positive expiration week bias in effect which would make the SPY put idea the wrong one. But I'm willing to take the risk if the market cooperates in the next two sessions. We'll see. Asia and Europe closed higher with the exception of France. I'll keep an eye on the overnight developments.

Moving higher as the Dow gained 237 points on heavy volume. The advance/declines were positive. The summation index is moving higher. New all time closing highs for the Dow and S&P 500. Waiting on the NASDAQ but at least it was the leader today. The jobs report had no surprises. The S&P 500 is short term overbought on some of its indicators but not completely. No overhead resistance for the S&P. I did place an overnight order for the SPY January calls again but it wasn't filled and I canceled the order. We've missed this trade and there are only five days left in the January option cycle. Might try the SPY puts near the end of next week if we get a set up. Gold was up $56 on the futures today. The US dollar was higher and interest rates finished mixed. The XAU was higher by 7 1/4, while GDX gained 7/8. Volume here remains on the light side. GDX is still short term overbought. No trades for us there right now. Mentally I'm feeling OK. The VIX was lower today which fits an up market. Some of the short term indicators here are starting to turn back down. The VIX is implying more near term upside for stocks. I'll be going over all the charts this weekend but the odds of a trade for us in the January option cycle appear to be slim at this point. We'll see. Europe and Asia were higher to close out the week with the exception of India. It's Friday afternoon and time for a break.

A mixed bag today with the Dow up and NASDAQ down. The most watched index rose 270 points on heavy volume. The advance/declines were better than 2 to 1 positive. The summation index is trying to move up. Just waiting on the jobs report at this point. The S&P 500 finished flat. The short term indicators there are still moving sideways. That should change tomorrow. There are a couple of up trend lines on the S&P that we are looking at. The shorter term one comes in at 6890, while the longer term one is at 6875. If the S&P can drift down to those levels we will be trying the SPY January calls. Running out of time in the January option cycle but that is the game plan at the moment. I may put in an open order for the calls overnight. Gold was up $25 on the futures. The US dollar was higher and interest rates ticked up. The XAU and GDX had fractional gains on light volume. GDX has gotten to short term overbought on some of its indicators. Mentally I'm feeling OK. The VIX finished little changed. Still in a mid-range spot for the short term indicators there. So you could make your case either way. I'm not sure where the VIX goes from here. We'll see the market reaction to the employment report and take it from there. Asia was lower and Europe little changed overnight. We'll close out the first week of January tomorrow.

Sellers took control today as the Dow fell 466 points on heavy volume. The advance/declines were shy of 2 to 1 negative. The summation index is now beginning to stall again. The Dow was the underperformer as the NASDAQ actually posted a small gain. The S&P 500 was off over twenty points. The short term indicators there are trying to turn down. We now have to determine if this is a chance to try the SPY January calls or if the market is going to roll over. We were pretty sure that we were going to 50000 on the Dow and 7000 on the S&P in short order. However todays price action puts that thesis in jeopardy. We thought we would simply drift higher into Fridays employment report. Now, that is not the case. We'll be checking things over again tonight. Gold took a breather as the futures were down $32. The US dollar was up a bit and interest rates were slightly lower. The XAU was lower by around 3 2/3, while GDX shed 1 1/8. Volume was light. No GDX options trade in mind at the moment. Mentally I'm feeling OK. The VIX was up today and the short term indicators here are now at the mid-range level. The VIX now looks like it wants to go higher which would send stocks lower. We would really like to see a clear signal one way or the other for our first trade of the new year but that doesn't seem to be happening here. Asia and Europe were generally lower overnight but the DAX posted a solid gain. I'll keep an eye on the overnight developments.

Up we go as the Dow gained 485 points to a new all time high on heavy volume. The advance/declines were shy of 2 to 1 positive. The summation index is moving higher. The S&P 500 set a new all time high as well. The short term indicators there are moving up and are not yet completely overbought. It looks like that we've missed the beginning of the year SPY call trade. The laggard here is the NASDAQ which will only be a problem if it doesn't make a new high going forward. There is no overhead resistance for the Dow and S&P. At the rate we are going we will look for the Dow to hit 50000 and the S&P to make it to 7000 before option expiration. Gold continues to shine as it was up over fifty bucks on the futures. The US dollar was higher and interest rates finished flat. The XAU gained 16 3/4 and GDX was up 3 2/3. Volume was average. GDX closed at another new high and is not close to being short term overbought. We are not going to chase it here although that might be the correct strategy. Mentally I'm feeling OK. The VIX was down a bit today. The short term indicators are tracking sideways. They are neither overbought or oversold. Not sure where the VIX is heading next. Eight days left in the January option cycle. Haven't figured out at this point if we'll put on a trade ahead of Fridays jobs report. Europe and Asia were higher with the exception of India again. We'll see how things go on Wednesday.

We have all the players back now and the Dow posted a gain of 594 points to a new all time high on heavy volume. The advance/declines were 2 to 1 positive. The summation index is turning back up. The NASDAQ and S&P 500 posted gains but not as much as the Dow. The Dow leading isn't the most bullish scenario. The short term indicators for the S&P are starting to turn back up. I did place an order overnight for the SPY January calls but it wasn't filled and I canceled it. Might try this idea again depending on the market price action going forward. However the Santa Claus rally did not take place this year and that could be a warning sign. Gold was up $123 on geo-political tensions. The US dollar finished lower along with interest rates. The XAU climbed 11 1/4, while GDX jumped 2 3/4. Volume was a touch above average. The short term indicators for GDX have turned back up but it did finish well off of the highs on the session. However there is no shortage of buyers it seems on any sell off. Mentally I'm feeling OK. The VIX was up today which doesn't fit with higher stock prices. The short term indicators here are inching higher. Not sure what's next for the VIX. Employment data this week is the main economic event. The market price action ahead of that will determine which way we go, if we go at all. I am expecting the market to move higher this week though. I could be wrong. Europe and Asia were higher to begin the week with the exception of India. We'll see if we get any upside follow through tomorrow.

Another day of hanging around but the Dow had a nice gain of 319 points on average volume. The advance/declines were 2 to 1 positive. The summation index is starting to stall again. The S&P 500 had a slight gain and the NASDAQ posted a small loss. I expected more buying today and we didn't see it. We are now getting a short term buy signal from one of our indicators. I am looking at the SPY January calls now but the market action isn't that bullish. The short term indicaors for the S&P have rolled over but are beginning to stall. They are at or close to the mid-range area. The short term up trend line here remains intact at the 6825 level. We bounced off of that level today. A break below there would put us back in a bearish stance. Gold was off a couple bucks on the futures. The US dollar was higher and so were interest rates. The XAU and GDX had fractional moves one way or the other on average volume. The short term indicators for GDX are still moving lower but look like they want to turn around. The up trend line for GDX remains at 80. Mentally I'm feeling OK. The VIX was a little lower today. The short term indicators here are beginning to move sideways. Not sure where the VIX is heading next. This is a tough market at the moment as we have a short term buy signal but the NASDAQ is a laggard. That isn't the most bullish set up. I will go over the charts as usual over the weekend to try and come up with a game plan. Two weeks to go in the January option cycle. The Santa Claus rally isn't happening for the S&P. That is usually a warning sign for the bulls. Most of the markets that were open overseas finished higher. It's Friday afternoon and time for a break.