After some early back and forth the market decided to go higher as the Dow gained 478 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 day but the Dow was by far the leader. Once again we are at the point where if the market was going to go lower it would have by now. Therefore I've got to believe that things are going higher from here. For whatever reason, this time when the summation index crossed the zero line stocks didn't collapse. The short term indicators for the S&P 500 are in overbought territory but not at extremes. I am back to thinking that new all time highs in that index will be hit at some point next week. Gold was up $29 on the futures. The US dollar was lower along with interest rates. The XAU was up 2 3/8, while GDX added about 1/2. Volume was light. The short term indicators for GDX are oversold and it continues to hold above its 200 day moving average. I am thinking that perhaps this is the time to try the GDX October calls but I'll look things over again this weekend. The overall US dollar and interest rate environment does not favor gold at the moment. Mentally I'm feeling a bit tired. The VIX was lower today and that fits with a positive day for stocks. The short term indicators here are back to heading lower. We'll get inflation data on Wednesday followed by the jobs report on Friday next week. The month ends on Wednesday as well. So there will be excuses to move the markets. I'll be going over all the charts this weekend to try and come up with some type of game plan for next week. Europe was mixed and Asia higher with China closed to end the week. It's Friday afternoon and time for a rest.

A little volatility today but the market mostly just hung around as the Dow fell 161 points on good volume. The advance/declines were around 2 to 1 negative. The summation index continues lower. The NASDAQ and S&P 500 ended the day flat. We had a small gap lower at the open followed by a jump at noon. Otherwise it was mostly a sideways affair. I'm not exactly sure what the next catalyst will be. The short term indicators on the S&P have started to move sideways. Gold was off $9 on the futures. The US dollar was slightly higher and interest rates finished mixed. The XAU dipped around 6 points, while GDX shed 1 1/4. Volume was average. GDX bounced off of its 200 day moving average. The short term indicators there are still heading lower. I am still considering the GDX October calls at some point. Mentally I'm feeling OK. The VIX was higher today but down from the best levels on the session. The short term indicators here are trending higher but with no conviction. Not sure exactly what's next for the VIX. The US/China get together hasn't had any surprises yet. The summation index has now crossed the zero line and we haven't seen stocks fall apart. That isn't the normal course of action. Not sure what it means but would still be careful about getting too interested in the long side until the summation index starts moving up. The market breadth is still negative most every session. Europe and Asia were lower with the exception of Japan. We'll close out the trading week tomorrow.

Sellers took over on Wednesday as the Dow fell 352 points on average volume. The advance/declines were better than 3 to 1 negative. The summation index is moving down. I had thought that it would turn around here at the zero line but that isn't happening. Caution is advised. The NASDAQ led the way lower and that is a negative. Things didn't exactly fall apart but that possibility now looms. Some of the short term indicators on the S&P 500 have turned down and its daily candlestick chart now has a bearish formation on it. Not exactly sure what happens next here so I'll remain on the sidelines for now. Gold lost $54 on the futures. The US dollar was higher and so were interest rates. The XAU fell 16 2/3, while GDX lost 4 1/4. Volume was good to the downside. Yesterday I was concerned about missing the next leg higher in the gold shares. Today, not so much. I considered chasing the gold shares higher yesterday but thankfully did not. The short term indicators for GDX have turned back down and are not yet oversold. GDX is already back below the down trend line that it broke yesterday. Back on the sidelines with regards to the GDX options for now as well. Mentally I'm feeling OK. The VIX was higher today and that fits with a down market. The short term indicators here are turning up. We'll see if there is any follow through higher tomorrow. China and the US get together for a meeting of their leaders tomorrow. What comes out of that might get the markets going one way or the other. Asia was mixed and Europe lower overnight. We'll keep an eye on the overnight developments.

Today was a mixed bag with the Dow lower and the NASDAQ higher. The most watched index fell 185 points on good volume. The advance/declines were about even. The summation index is still trending lower at the zero line but appears to be trying to turn around. The NASDAQ was up today and the S&P 500 basically unchanged. Waiting on the next catalyst to get things moving again, perhaps the Thursday meeting between the US and China. Some of the short term indicators for the S&P are overbought and others are moving sideways. I'm in the camp that we will hit a new all time high on the S&P in the near future. But I could be wrong. The breadth hasn't been all that good lately, however you cannot argue with price. Option premiums remain high. Gold was up twenty bucks on the futures. The US dollar finished slightly higher and interest rates ticked lower. The XAU gained almost 14 points and GDX was up 3 1/3. Volume was average. Looks like that we missed out on the GDX calls here again. GDX has broken above its short term down trend line today. The short term indicators here are moving higher with plenty of room to go. Perhaps this is a move that should be chased. Mentally I'm feeling OK. The VIX was lower today and the short term indicators are moving down in oversold territory. During rallies the VIX can stay oversold longer than usual. We'll see if that is the case this time around. Right now I suspect that it is. Europe finished pretty flat and Asia was higher with the exception of India last night. We'll see what tomorrow brings.

Moving to the upside to begin the week as the Dow rose 366 points on lighter volume. The advance/declines were positive. The summation index is beginning to slow its downward movement as we are at the zero line. My guess is that it will be successful and turn around barring any unforseen catastrophe. Stock markets opened with a gap higher and it was off to the races from there. The NASDAQ led the way higher by finishing up over 2%. It finally hit a new all time high. The S&P 500 was up over a hundred points. The short term indicators there are moving up and are not yet completely overbought. Buyers have returned and it appears that sellers have lost control. Gold dipped $41 on the futures. The US dollar was higher and interest rates lower. The XAU dropped 4 3/4, while GDX lost over a point. Volume was light. Some of the short term indicators on GDX are heading lower. Would like to see GDX get back to completely oversold before trying the October calls there. Markets rarely cooperate. Mentally I'm feeling OK. The VIX was flat today which isn't exactly what you want to see with such a strong market. In oversold territory for the short term indicators on the VIX but there is some room to go lower. Not a lot of economic data out this week. A US/China meeting on Thursday will be the most watched factor for the next few days. It appears that the selling has concluded and the S&P 500 should follow the NASDAQ to new all time highs at some point this week. The Dow on the other hand is pretty far from that. Option premiums are high so we will wait and see on the next trade for now. Asia and Europe were up as money is finding a home in stocks now around the globe. I'll keep an eye on the overnight developments.

We opened up with a gap higher and spent the rest of the day in a sideways channel. However the Dow fell 95 points on expiration heavy volume. The advance/declines were 2 to 1 negative. The summation index continues lower. Both the NASDAQ and S&P 500 posted light gains with the NASDAQ leading the way. The short term indicators for the S&P are at mid-range with some beginning to stall. Todays breadth was not good but I still think that the market goes higher from here. But getting this close to the zero line in the summation index could really spell trouble so we'll remain on the sidelines for now. Gold was off $16 on the futures. The US dollar was a touch lower and interest rates rose. The XAU and GDX had fractional losses on below average volume. The short term indicators for GDX are still trending higher. Considering the GDX October calls as the next trade. Mentally I'm feeling OK. The VIX was lower and the short term indicators here continue to move down. Another reason not to get too bearish here. The market is still at risk from the next Iran conflict headline but at least we've got the Fed and inflation data behind us for the time being. I'll be going over all the charts this weekend as we roll into the October option cycle. Asia was generally higher and Europe lower to close out the week. It's Friday afternoon and time for a break.

Bouncing back today as the Dow gained 316 points on good volume. The advance/declines were around 2 to 1 positive. The summation index is still moving down. We got a signal last night from the McClellan oscillator for a big move within the next two trading sessions and today fulfills that. Both the NASDAQ and S&P 500 were up over 1%. The NASDAQ led the way and that's a plus for the bulls. The short term indicators for the S&P have turned up from oversold territory. Out next task is to figure out if this is just another bounce out of nowhere as we work our way lower or the start of something more sustained to the upside. I'm inclined to think that it's the latter as most of the medium term indicators are now oversold and in areas that previously denoted more than just a short term bottom. However with the summation index in close proximity to the zero line, we can't rule out a further decline at the moment. We also do not know how much of the price action today was option expiration related. The game is never easy and we will be rolling over to the October option cycle so premiums will be high. Gold finished flat on the futures but its recent decline has subsided. The US dollar was barely lower and interest rates dipped. The gold shares followed the market higher. The XAU gained 13 points and GDX was up 3 1/8. Volume was average. The short term indicators for GDX are now pointing up. I'm still considering the GDX October calls. Mentally I'm feeling OK. The VIX was lower today and its short term indicators are moving down with room to go. The daily chart here appears that it wants to go lower which would support more gains in stocks. The fact that the VIX couldn't make it above its 200 day moving average is another sign that the bulls could be on the verge of taking charge here. We'll see. Europe was up and Asia mixed overnight. Expiration Friday on tap tomorrow.

Volatility returned as the Fed raised rates as most expected. The Dow fell another 631 points on heavy volume. The advance/declines were negative. The summation index continues to drop. The Dow led the way lower as it has recently. A final hour rally kept things from being worse. The NASDAQ was barely lower and that is a plus for the bulls. The S&P 500 had a modest loss and finished off of its lows as well. The short term indicators there remain oversold. Two days left in the September option cycle and if I was a short term trader I'd consider the SPY calls. But the short term trades are not my best efforts. I also thought that there was a chance that the Fed would leave rates unchanged but that didn't happen. Gold was off $23 on the futures after being positive for much of the session. The US dollar was higher and most interest rates ticked up. The XAU lost 5 1/2, while GDX shed 1 1/3. The gold shares came up from their lows on the day as well. Volume was good to the downside. GDX opened with a gap higher and sold off for the rest of the day. I did adjust my order for the GDX September calls a couple of times in the morning. However gold itself was remaining pretty positive and the gold shares weren't doing anything. I canceled my order for the GDX calls and did not think it was worth the risk. Preservation of capital took over. I am looking out to the GDX October calls as it is now oversold on a short term basis. But the fundamental backdrop for gold isn't positive here with higher rates and a stronger US dollar. Mentally I'm feeling OK. The VIX was up today but remains below its 200 day moving average. The short term indicators here are overbought but not completely. I'm not sure where the VIX is heading next. Stocks had a chance to fall apart at the end of the day but did not. The zero line on the summation index remains in sight. So it is a tough call as to what happens next here. The reason that I would favor the SPY calls with two days to go for the September options is the fact that we didn't see a negative close today when the market had every reason to seek one. Markets don't wait around to go down. The next two days should be interesting. Asia and Europe finished higher overnight. We'll see what tomorrow brings.

Another day of selling ahead of the Fed as the Dow dropped 328 points on average volume. The advance/declines were 2 to 1 negative. The summation index is moving down. I would be remiss here if I didn't mention the summation index is getting closer to the zero line. That means there is an increased risk that the market simply starts to fall apart here. The summation index usually isn't anywhere near the zero line so the fact that we are getting close should not be ignored. It doesn't mean that the market will crash but the odds of it happening go up. The short term indicators for the S&P are trending sideways in oversold territory. Any bounces for the S&P that we've seen lately haven't gone anywhere. We also haven't seen any huge declines or panic selling yet. I am not looking to trade any SPY options the rest of this week. Gold dipped $13 on the futures. The US dollar was higher and interest rates continue to move up. The XAU and GDX finished little changed on light volume. They did come up from the lows of the session. My open order for the GDX September calls wasn't filled. I adjusted it but it still did not get hit. I'm leaving it out there to see what happens tomorrow morning. If GDX dips early on I will most likely buy some calls ahead of the Fed. If not I'll cancel the order and see what happens after the Fed announcement. The short term indicators for GDX are oversold so this is where I'd like to try the calls. That doesn't mean GDX will rise from here as it can stay oversold during down trends. But this is where we think it could be worth the risk with only three days left in the September option cycle so we will try and take on this idea. Mentally I'm feeling OK. The VIX was slightly higher today as the 200 day moving average continues to provide resistance. The short term indicators on the VIX are starting to move sideways. This indicator should get going one way or the other tomorrow after the Fed. Asia and Europe closed lower overnight. Wednesday should be an interesting session and I should be up for the challenge. We'll keep an eye out for any overnight news.

Players returned from the weekend in a selling mode as the Dow fell 152 points on average volume. The advance/declines were negative. The summation index continues lower. The NASDAQ led the way down but not by much. There was a huge gap lower at the open but stocks recovered during the session. However they didn't make it back to positive territory. Finished up off the lows though. The short term indicators on the S&P 500 are now trending lower or sideways with most in oversold territory. No clear signal here and with only four days left in the September option cycle anything could happen. Retail sales due Wednesday morning but the Fed that afternoon is the main story. Not sure what to expect there with the majority of players expecting a hike. I'm not considering the SPY puts here anymore. Gold was off $84 on the futures. The US dollar was higher and interest rates ticked up. The XAU fell 11 3/4, while GDX lost almost 3. Volume was just above average. I did place an overnight order for the GDX September calls but it wasn't filled. GDX also opened with a big gap down and never recoverd. GDX is now short term oversold on some of its daily indicators. This too is a risky trade but it is the idea that I decided on trying over the weekend. It will depend on the market reaction to whatever the Fed does but getting to short term oversold on GDX was what we were looking for. I'm leaving the order out there so we'll see if it gets filled or not. If it doesn't get filled ahead of the Fed announcement on Wednesday, I'll cancel it. Or perhaps I'll adjust it tomorrow. Mentally I'm feeling OK. The VIX was up today which fits a down market. The short term indicators here are turning back up but the 200 day average proved to be resistance again. If the VIX breaks above there we could be looking at a bigger decline. Hasn't happened yet. Europe and Asia were generally lower. I'll keep an eye on the overnight headlines.

Some buying for a change today as the Dow climbed 509 points on lighter volume. The advance/declines were positive. The summation index continues lower. The inflation data came in where expected and the market had a big gap higher at the open. The rest of the day was spent in a sideways pattern that limped home to the close. Now we have to figure out if this is the start of something to the upside or another bounce out of the blue that turns around and heads for lower lows. Once again the Dow, NASDAQ and S&P 500 had about the same percentage move on the session. The S&P closed back above the 7600 level and some of the short term indicators have turned back up. We've got the Fed to deal with next week and a rate hike is now expected. I would not be too sure of that. Gold dipped $14 on the futures. The US dollar was barely higher and interest rates ticked up. The XAU was up 2 1/3, while GDX gained a point. Volume was light. I did place an order overnight for the GDX September calls in case we got some selling today but that did not happen and I canceled the order. Some of the short term indicators for GDX are almost oversold. If rates do get raised in the US next week, owning the gold share calls is probably not the best idea. Mentally I'm feeling OK. The VIX dropped which fits the positive day for stocks. Most of its short term indicators have now turned back down from overbought territory. That could mean that the decline is over. However the breadth today wasn't all that great considering the move up that we had. I will have to go over everything this weekend and determine which trading idea to take next week. Either the SPY September puts or the GDX September calls with only a week to go in the option cycle. Risky indeed. However we should definitely see some market movement post Fed. I would like to be positioned in something before that event. Or perhaps I'll remain on the sidelines. We'll see. Europe higher and Asia lower to close the week. It's Friday afternoon and time for a break.

Sellers remain in control as the Dow fell 316 points on average volume. The advance/declines were around 3 to 1 negative again. The summation index is moving down and we will take our cues from that. It has been an orderly decline thus far as panic has yet to arrive. The inflation data for producer prices came in about where expected. The Dow, NASDAQ and S&P 500 all dropped the same percentage. The short term indicators for the S&P continue to fall and are short term oversold now but not completely. The S&P has broken its up trend line along with closing below 7600 and its 50 day moving average. I suppose tomorrow will tell the story if we are headed for a steeper decline or perhaps if the inflation data is OK, some kind of bounce. We have missed the SPY September put trade it appears. Gold was down $96 on the futures. The US dollar was higher and interest rates jumped. The XAU lost 14 2/3, while GDX dropped around 3 1/3. Volume was average. The short term indicators for GDX are still heading lower with room to go. I still like the idea of the GDX calls at some point before option expiration. I might even place an order for them overnight in case the inflation number comes out hot and stocks tank early in the morning. But next week might be a better time to purchase. There is also the possibility that things fall apart for the market here and gold goes along for the ride. Which would make purchasing any calls the wrong strategy. There will be a lot of risk in taking on any trade now as we are running out of time in the September option cycle. Mentally I'm feeling OK. The VIX was up again but stopped at its 200 day moving average. The short term indicators here are now overbought. Still below the 20 level. If the VIX stays overbought there will be more downside in the markets to go. That usually doesn't happen though. Interesting times but caution is advised. Asia was mixed and Europe lower overnight. We'll see how the inflation data reads and go from there.

No buyers to be found as the Dow fell 405 points on average volume. The advance/declines were around 3 to 1 negative. The summation index is moving down. The Dow continues to lead the way lower which isn't the usual case. Producer prices out tomorrow and it probably won't be good news but who knows? More weight is attached to Fridays consumer price gauge so we should see some fireworks in the marketplace then. Too late for the SPY September puts at this point unless the market goes into free fall. The S&P 500 has now barely broken through the up trend line on the daily chart that began in April. The short term indicators there are still moving down. There remains some support at the 7600 level but the mood lately has been negative and sellers have control for now. Gold was up a couple bucks on the futures. The US dollar finished flat and interest rates continue to rise. The XAU was up 4 1/2 and GDX rose a point. Volume was light. The short term indicators for GDX are now stalling at the mid-range level. I still like the idea for the GDX September calls at some point before next weeks option expiration. However we don't have a clear technical signal one way or the other at the moment. We do not want to guess what will happen ahead of two days of inflation data. Mentally I'm feeling OK. The VIX continues higher and the short term indicators are moving up. Not yet overbought here so more near term selling is not out of the question. Still well below the 20 level though. We sit on the sidelines for now as we look back and see that the big rally out of nowhere last Thursday was the time to try the September SPY puts. The thought did cross my mind but we had not seen a prior big decline ahead of it which is usually how it works. I will keep my eyes open for some type of trade before next Friday though. Asia and Europe were down overnight. We will keep an eye on the evenings news.

The Dow got crushed today as it fell 628 points on average volume. The advance/declines were shy of 2 to 1 negative. The summation index continues to trend lower. We did get a signal from the McClellan oscillator on Friday for a big move within the next two sessions and the Dows move lower today takes care of that. Both the NASDAQ and S&P 500 fell to begin the week but certainly not as much as the Dow. The NASDAQ dropped the least and the bulls will point to that. Many of the short term indicators for the S&P 500 are moving lower. The S&P now sits on the up trend line that began in April on the daily chart. We are at the moment of truth here. I still like the idea of the SPY September puts but it just might be too late. Inflation data on Thursday and Friday but it looks like the market isn't going to wait for that. I may place an order overnight for the SPY puts in case things reverse tomorrow. Gold was off $71 on the futures. The US dollar was lower and interest rates ticked up. The XAU dipped 1 2/3, while GDX slipped around 3/4. Volume was light. The short term indicators for GDX are turning lower. I do have an idea for the GDX September calls but will have to see what happens this week before taking on that trade. It would be a pretty risky one with time running out in the September option cycle but it will be based on the technical condition for GDX ahead of the Fed next week. Mentally I'm feeling OK. The VIX was up today which fits the down market. The short term indicators here have turned back up with room to go. Still a low reading for the VIX but the gap up today could spell trouble for the bulls. Asia was lower and Europe little changed overnight. We'll see how it goes tomorrow.

The employment report was much stronger than expected but stocks didn't enjoy that news as the Dow fell 272 points on light volume. The advance/declines were about even. The summation index is stalling here. Will it turn around with a stock rally or roll back over with a market decline. Always plenty of questions with no clear answers ahead of time in this game. The Dow led things lower and that's not the most bearish scenario. The short term indicators on the S&P are now mixed. I'm waiting to see if we can move higher ahead of the inflation data next week to try the SPY September puts. No clear signal either way as of now but I'll be checking things over the long holiday weekend. Gold lost $58 on the futures. The US dollar was higher and interest rates were up slightly. The XAU fell almost 7 points and GDX lost 2 1/4. Volume was average. The short term indicators for GDX took a step back today. Not sure if I'm going to trade the GDX options ahead of the data next week but might try them the following week with the Fed meeting. There really isn't a clear signal here either right now. Only nine days left in the September option cycle. Mentally I'm feeling a bit tired. The VIX was up slightly today but remains at a very low level. The short term indicators here are oversold but not completely. Not sure what comes next for the VIX. Plenty of time this long weekend to go over the charts and get a game plan for next week. All the players should be back on Tuesday. Asia was higher and Europe mixed to close out the week. It's Friday afternoon and time for a break.

A good day for the bulls as the Dow climbed 624 points on light volume. The advance/declines were positive. The summation index is beginning to stall. The NASDAQ led the way higher. I had expected perhaps a quiet session ahead of tomorrows jobs report but that was not the case. Probably some short covering in there with the buyers. The short term indicators for the S&P 500 are moving up. If we continue to rally from here, new all time highs could be on the table for next week. I am still considering the SPY September puts though if things line up for that idea ahead of the inflation data due out late next week. However we also have to consider that the support at 7600 on the S&P held up and the up trend line that started in April is still intact on the daily chart. Gold took off to the upside as the futures gained $105. The US dollar fell sharply and interest rates dipped. The XAU added 12 1/4, while GDX was up 3 7/8. Volume was good to the upside. The short term indicators for GDX have turned around from the mid-range level. I canceled my open order for the GDX September calls as it appears that GDX is not going to get completely oversold as I had hoped. Another missed opportunity but we will wait and see if GDX can get above the recent highs. Mentally I'm feeling OK. The VIX was lower which fits an upside day for stocks. The short term indicators here are heading down but not yet completely oversold. Not sure what to expect with the market reaction to the jobs report but if today is any indication stocks will most likely continue higher. Asia lower and Europe higher overnight. We'll close out the trading week ahead of a long weekend tomorrow.

Some buyers returned to action today as the Dow was up 295 points on light volume. The advance/declines were positive. The summation index is still heading lower. The Dow led things higher and that isn't the most bullish outcome. We had a rally early on and then traded sideways for the rest of the session. The S&P 500 is still above the support at 7600. Its short term indicators are trying to turn back up. My guess is that we'll be in a holding pattern tomorrow ahead of Fridays jobs report. Gold was up $36 on the futures. The US dollar was a bit lower as were interest rates. The XAU was up 11 3/4 and GDX added almost 3. Volume was average. The short term indicators for GDX are beginning to stall at the mid-range level. I did place an overnight order for the GDX September calls but it will take more of a drop in GDX for it to get filled. But I do have to wonder if this is the place for that trade if the mid-range level on the indicators proves to be support. The trading is never easy. Mentally I'm feeling OK. The VIX was lower today and some of its short term indicators have turned back down. The daily candlestick chart here now looks like it wants to go lower. Not sure what's next for the VIX. Simply waiting for the employment report at this point unless some overnight news gets things going early tomorrow. A long weekend on the horizon but everybody should be back at their desks by Tuesday. Asia and Europe closed lower overnight. I'll keep watch on the overnight developments.

Heading down as the Dow fell 419 points on light volume. The advance/declines were better than 2 to 1 negative. The summation index is moving lower. The NASDAQ led things down and that is not a plus for the bulls. The S&P 500 had a decent drop and the short term indicators here are now more oversold. It remains above the support at 7600. It appears that it is too late for the SPY September puts but you never know. Gold fell $107 on the futures. The US dollar was higher along with interest rates. The XAU lost 15 3/4, while GDX shed 3 3/4. Volume was good to the downside here. The short term indicators on GDX are moving down but are not yet short term oversold. When it gets there we will most likely try the GDX September calls. That is the plan at the moment. Mentally I'm feeling OK. The VIX moved higher today and that fits with a down market. The short term indicators here are moving up but not yet overbought. Still far below the 20 level on the VIX. With the summation index moving down the path of least resistance is lower. The key is what happens at 7600. There is support from previous tops along with the near term up trend line that began in April. We should know what happens by the end of the week. Asia and Europe were lower overnight. I'll keep an eye on tonights headlines.

Lower to start the week on the last day of August as the Dow fell 374 points on good volume. The advance/declines were negative. The summation index is moving lower. The NASDAQ and S&P 500 posted small losses. The Dow leading the way down isn't the worst possible scenario. The short term indicators for the S&P appear to be rolling over in oversold territory though. Near term support on the S&P is still at around the 7600 level. Gold was off $26 on the futures. The US dollar was lower and interest rates were higher. The XAU fell 5 1/2, while GDX slipped 1 1/8. Volume was light. The short term indicators for GDX are still trending lower with room to go. I am still looking at the GDX September calls but will wait for now. Getting back to short term oversold on the gold shares before option expiration would be the ideal time for this idea but markets rarely cooperate. I am also in favor of the SPY September puts at some point unless things simply unravel from here. The volume was better today so perhaps players are back at their desks ahead of Labor day. Or it could just be the result of the end of the month squaring. The VIX was higher today which fits a down market. Its short term indicators are trying to turn back up. That would not bode well for stocks if it happens. Plenty of economic data out this week highlighted by the jobs report on Friday. Europe and Asia were generally lower to begin the week. We'll see how the market starts the month of September tomorrow.

An up and down session to end the week that finished mostly lower across the board. The Dow only fell 9 points on light volume. The advance/declines were negative. The summation index is still trending lower. The Fed chairman spoke and the market sold off. The NASDAQ led the way down. The short term indicators for the S&P 500 are starting to roll over. We still like the idea of the SPY September puts. But will everybody be back at their desks next week or do we have to wait until after Labor day? No clear signal that I can see on what happens next. Gold got slammed and the futures fell $158. The US dollar jumped and interest rates were higher. The XAU lost 15 1/3 and GDX shed 4. Volume was heavy to the downside. The short term indicators on GDX have begun to move lower but are still on the overbought side of the ledger. The question is whether or not this is the opportunity to try the GDX September calls. We'll consider the answer over the weekend. Mentally I'm feeling OK. The VIX was a touch lower today which doesn't fit with a down market. Some of the short term indicators here are beginning to turn sideways. Yesterday the VIX looked like it wanted to go lower but now the picture isn't as clear. What is clear is that the breadth remains lousy and the NASDAQ has yet to confirm the other averages recent new all time highs. I'll be going over the charts as usual this weekend. Europe and Asia were higher to end the week. It's Friday afternoon and time for a break.

Moving higher as the Dow rose 105 points on light volume. The advance/declines were negative. The summation index is still in a sideways channel. The NASDAQ led the way higher thanks to the NVDA outlook last night. The S&P 500 jumped 55 points. The short term indicators there are now moving higher. My guess is that we are about to test the all time highs again. However the recent volume has been light and the breadth has not been that positive. I still like the SPY September puts at some point. The Fed chairman will be giving a speech tomorrow and that could impact prices. Gold was up ten bucks on the futures. The US dollar finished unchanged and interest rates were barely higher. The XAU added 4 1/4 and GDX was up 1 1/4. Volume was light. The short term indicators on GDX are still traveling in overbought territory. Mentally I'm feeling OK. The VIX was down today and the short term indicators here are heading lower. The daily price chart and indicator movement for the VIX looks like it wants to go lower which would be positive for stocks. For the most part Asia and Europe finished lower overnight. We'll close out the week tomorrow.

Slightly lower today as we got more of the same going nowhere market price action. The Dow slipped 113 points on light volume. The advance/declines were slightly negative. The summation index is heading sideways. The inflation data came in about where expected and did not have much effect on prices. Perhaps the after the close NVDA earnings will get things moving. Most of the short term indicators for the S&P 500 remain oversold. Lighter volume reflects the lack of all the players being in the game at the end of summer. We will most likely let this week pass and go from there. Gold finally took a breather with the futures off $46. The US dollar was higher and interest rates finished flat. The XAU lost 11 3/4, while GDX dropped 3 1/8. Volume was average. The short term indicators for GDX have turned down but remain overbought. We would need to see more of a decline here for GDX before we consider the September calls. Mentally I'm feeling OK. The VIX was a bit lower today which doesn't fit with a lower market. The short term indicators on the VIX are now at mid-range so it could go either way from here. Combine that with a sideways S&P 500 for the past week and you get the picture. So we will sit things out until we have a better picture of things one way or the other. Asia and Europe were generally positive overnight. I'll keep an eye on the overnight developments.

Higher across the board today as the Dow rose 160 points on light volume. The advance/declines were positive. The summation index is beginning to turn sideways. The NASDAQ led the way up today and that is a plus. There was a gap higher at the open and then the market traded sideways for the rest of the day. We once again got a signal last night from the McClellan oscillator for a big move within the next two trading sessions. This signal has not worked lately but we'll see if it can tomorrow. Some of the short term indicators for the S&P 500 have turned up in oversold territory. Perhaps the inflation data tomorrow can spur some kind of activity. NVDA earnings will be released after the close. Gold was up $24 on the futures. The US dollar was a bit lower and interest rates dropped. The XAU was up almost ten points and GDX added two. Volume was a bit above average. Gold and the gold shares continue to attract capital. The current rally is relentless. There are no pullbacks to try the GDX September calls. The short term indicators for GDX remain extremely overbought. We certainly will not chase it at this point. Mentally I'm feeling OK. The VIX was lower today which fits an up market. However some of the short term indicators on the VIX continued to move up. I'm not sure what that means, if anything. Curious movement though. Remaining on the sidelines for now. Europe and Asia finished mostly higher. We'll see how things go tomorrow.

A mixed bag to begin the week as the Dow was higher and the overall market lower. The Dow rose 140 points on light volume. The advance/declines were about even. The summation index is still trending lower. The overall market was down, with the NASDAQ losing 200 points. The S&P 500 had a slight loss. The short term indicators there are mostly oversold. Stocks are having a problem gaining any traction to the upside lately. Inflation data due out on Wednesday should be benign. I'm still interested in the SPY September puts but will wait for some kind of move higher in the near term before trying them. Gold was up another $28 on the futures. The US dollar was a bit higher an interest rates a bit lower. The XAU was up 4 1/8, while GDX added around 3/4. Volume was average. Gold and the gold shares have had quite a run in past few weeks. The short term indicators for GDX remain extremely overbought. This condition cannot go on forever. However we are not about to fight it. Mentally I'm feeling a bit tired. The VIX was up today which fits an overall down day for stocks. The short term indicators here are back to pointing up. Not sure where the VIX heads next. Now into the September option cycle and premiums are high. It's the last full week of trading in August and many players are getting in their final summer vacations. We are in no hurry to put on a position right away. We'll see if our patience pays off. Europe and Asia were generally lower to start the week. I'll keep an eye on tonights headlines.

Buyers returned on expiration Friday as the Dow climbed 517 points on lighter volume. The advance/declines were positive. The summation index is trending lower. The Dow led the way higher and that isn't the most bullish scenario. Still waiting on the NASDAQ to confirm the most recent highs in the Dow and S&P 500. The short term indicators for the S&P are still moving lower. Not sure how long that short term buy signal for the S&P we just got will last. Prefer to try the SPY puts once we get back to an overbought technical condition. Gold keeps rolling along as the futures gained $106. The US dollar finished little changed again and interest rates were a bit higher. The XAU rose 13 1/8 and GDX added 3. Volume continues to be good here. GDX is extremely short term overbought but in rallies like this one it doesn't matter. Money is coming into the gold shares and declines are viewed as buying opportunities. We will wait for some kind of pullback before attempting to buy the GDX calls. If one doesn't occur we will continue to look for an entry point for the SPY puts. Mentally I'm feeling OK. The VIX was down today and the short term indicators here have now turned lower. I'm not sure where the VIX is heading next. Just over a week left in August as summer is winding down. I'll be checking the charts over the weekend as usual. Rolling into the September option cycle but there's no hurry to do anything at the moment. We'll get some inflation data in the middle of next week. Asia was mixed and Europe higher to end the week. It's Friday afternoon and time for a break.

Back to the downside today as stocks cannot seem to gain any traction. The Dow fell 703 on lighter volume. The advance/declines were about 2 to 1 negative. The summation index is back to trending lower. The Dow led things down but both the NASDAQ and S&P 500 had decent losses. The short term indicators on the S&P are now heading lower and are at the mid-range level. There is strong near term support at the break out level of 7600. The longer term up trend line comes in at 7550. If for some reason those levels don't hold then we will be in for more downside. Getting close to a short term buy signal on one of our indicators for the S&P. Gold is the place to be as the futures added another $38. The US dollar finished about flat and interest rates rose. The XAU gained almost ten points, while GDX was up 2 1/2. Volume is still good to the upside here. GDX remains overbought on all the short term indicators. The medium term indicators still have room to go. Looking to try the GDX September calls if we see any pullback. Mentally I'm feeling OK. The VIX was up today and the daily chart looks like it wants to go higher. The short term indicators here are moving higher and are no longer oversold. It looks like volatility is going to make a comeback. I also still like the idea for the SPY September puts. Asia was higher and Europe lower overnight. We'll close out the week tomorrow.

Minor gains were posted today as the Dow rose 119 points on average volume. The advance/declines were positive. The summation index is trending lower. We had a small gap up at the open, rallied for a couple of hours but then sold off for the rest of the session. None of the major averages could keep the lions share of their intra-day gains. For some reason stocks cannot find any traction here during expiration week. The short term indicators for the S&P 500 are starting to turn sideways. Gold jumped as the US treasury secretary indicated that they would be buying more bonds to keep rates down. The precious metal futures were up $146 to over $4500. The US dollar got clobbered and longer term interest rates dropped. The XAU climbed over 32 points and GDX was up around 8 1/2. Volume was heavy to the upside. The short term indicators for GDX have turned back up in overbought territory. The pullback to the broken down trend line that we were looking for never happened. The gold shares simply took off to the upside and never looked back. GDX is up over 30% in 2 1/2 weeks. The gold shares have far outperformed gold itself. Not sure how much longer that can go on but I'm still a fan of the GDX September calls if we see some selling in the gold shares. However the ideal timing for this trade was missed by us once again. Mentally I'm feeling OK. The VIX was lower today which fits with an upside market. The short term indicators remain in oversold territory. I'm not sure where this indicator heads next. Still remaining on the sidelines for now with regards to the SPY and GDX options. Asia and Europe were mostly lower overnight. I'll keep an eye on tonights headlines.

The selling continues today as the Dow dropped 116 points on light volume. The advance/declines were negative. The summation index is trending lower. We had a big gap down at the open and then traded sideways for the rest of the day. The overall market fared much worse than the Dow with the NASDAQ leading the way down. We are still waiting for the NASDAQ to confirm the new highs made by the Dow and S&P 500. If that doesn't occur we will be heading lower. The short term indicators on the S&P have turned lower but remain overbought. I am considering the September SPY puts but the premiums are pretty high. The mood of the market seems to be changing here. Gold was down $74 on the futures. The US dollar was slghtly higher and interest rates slightly lower. The XAU fell 10 7/8 and GDX dropped 2 7/8. Volume was average. The short term indicators for GDX are still overbought. Mentally I'm feeling OK. The VIX was up today which is what to expect with a down market. The short term indicators here are moving higher but most remain in the oversold range. The VIX is still well below the 20 level. Three days left in the August option cycle and we'll remain on the sidelines for now. Considering the SPY September puts and the GDX September calls at the moment. Asia was mixed and Europe generally down overnight. We'll see how it goes tomorrow.

Starting expiration week on a down note as the Dow fell 272 points on light volume. The advance/declines were better than 2 to 1 negative. The summation index is back to tracking sideways. Most stock markets opened higher and closed lower. We got another signal on Friday from the McClellan oscillator for a big move within the next two sessions. This signal hasn't worked lately but we'll have to see what happens tomorrow. The Dow and S&P 500 led things lower today. The short term indicators for the S&P 500 have turned down but remain overbought. No SPY option trades in mind at the moment. Gold was up $39 on the futures. The US dollar finished a bit lower and interest rates just a bit higher. The XAU added 7 points and GDX was up 1 7/8. Volume was light. GDX remains short term overbought. I am looking at the September GDX calls but am still waiting for some kind of pullback before purchase. Markets rarely cooperate. Mentally I'm feeling OK. The VIX was up today and that coincides with a down market. Still short term oversold on the measures here. I'm not sure where the VIX is headed next. Not a lot of economic data due out this week as we continue to travel through summer. Haven't heard much about the US/Iran conflict lately but that could change on a moments notice. Waiting for the next decent technical signal but at this rate it could be a while. Asia was generally higher and Europe lower to begin the week. We'll keep an eye out for any overnight developments.

Weakness for much of the session as the Dow fell 107 points on very light volume. The advance/declines were slightly positive. The summation index is trending higher. Retail sales came in less than expected but after a brief pop the market was lower and sideways for the rest of the session. It had the feel of a Friday in the summer with not much action and players away from their desks. We could be getting this for the next couple of weeks in August but we'll see. Small losses for both the S&P 500 and the NASDAQ. The short term indicators continue to trend sideways in overbought territory for the S&P. Option expiration week coming up and we'll see if it has the usual positive bias. Gold was up ten bucks on the futures. The US dollar was lower and interest rates higher. The XAU gained 6 3/4, while GDX was up around 1 2/3. Volume was light. The short term indicators for GDX are trying to turn back up in the overbought range. I canceled my open order for the GDX August calls as we are running out of time in the August option cycle. Might try the September calls there but would have to see some sort of pullback first. Will try not to force the issue here because if summer doldrums trading mode takes effect it makes the options game that much tougher. Mentally I'm feeling tired. The VIX was lower again today and that does not fit with a down market. Extremely oversold on some of the short term indicators here. Not sure what's next for the VIX but it has been hanging around in oversold territory for two weeks. That won't last forever. Five days left in the Auguust option cycle so the risk is high there. Not sure that I'll be taking on any trades next week but you never know. The bulls remain in charge for now. I'll be checking the charts over the weekend to see what I can come up with. Asia and Europe finished mixed. It's Friday afternoon and time for a rest.

Moving up on lighter than expected inflation data but the Dow only gained 69 points on light volume. The advance/declines were positive. The summation index is trying to move higher. The NASDAQ led the way, up over 200 points. The S&P 500 had a decent gain of fifty for a new all time closing high. It appears to be breaking to the upside from the recent sideways activity. The short term indicators here remain overbought and staying there. No overhead resistance and the bulls are in charge. Gold dropped $63 on the futures. The US dollar finished flat and interest rates were lower. The XAU was off 10 points and GDX lost 3. Volume was pretty good to the downside. The short term indicators for GDX have moved lower but remain overbought. Perhaps this is the beginning of the awaited pullback towards the broken down trend line that we've been looking for. I still have my open order out there for the GDX August calls but with only six days left in the August option cycle I might have to move out to September. We'll see how things go tomorrow and take it from there. Mentally I'm feeling OK. The VIX was up a touch and that doesn't fit with an overall positive day for stocks. Oversold and staying there is the story here. We are still waiting for the NASDAQ to confirm the new all time highs for the Dow and S&P. Also waiting on the TRAN to confirm the move higher for the Dow. Asia was mixed and Europe lower again. Retail sales out on Friday and we'll finish the trading week tomorrow.

Most stock markets moved higher but the Dow lost 21 points on light volume. The advance/declines were positive. The summation index is still moving sideways. Inflation data came in at the consensus, which wasn't what I expected. Thankfully we did not own the SPY August puts as there was a big gap up at the open followed by a sideways drift for the rest of the session. We did receive a signal from the McClellan oscillator last night for a big move within the next two trading sessions. We'll see if we get that move tomorrow. The NASDAQ led the way higher again today and that remains a plus for the bulls. The short term indicators for the S&P 500 are still overbought and staying that way. Now joined by the medium term gauges as well. Not sure how much longer this can last but can be longer than expected during rally phases. Gold up another thirty bucks today. The US dollar was higher today, while interest rates finished relatively flat. The XAU was up 3 1/8 and GDX added 7/8. Volume was light. GDX remains short term overbought like the overall market. I did place an order overnight for the GDX August calls but it will take some selling to get filled. I'm leaving the order out there but may have to switch to the September option cycle going forward. We have yet to see GDX make a pullback to the down trend line that it broke. Mentally I'm feeling OK. The VIX was lower today which fits with an overall up market. Still oversold and staying that way. The bulls are in charge. More inflation data on the docket for tomorrow. Asia was mixed and Europe a bit lower overnight. I'll keep watch on this evenings developments.

Just another slow day in the summer as the Dow fell 184 points on lighter volume. The advance/declines were slightly positive. The summation index continues sideways. Modest losses for most of the major averages with the NASDAQ leading the way. Inflation data tomorrow should get things going one way or the other. The S&P 500 is tracking sideways for now but that should end tomorrow. The short term indicators here are still running in place on the the overbought side of the ledger. I canceled my open order for the SPY August puts as it wasn't going to get filled. I did not want to pay up for the puts even though that is the trade that I feel makes the most sense here. We'll see. Gold was up $11 on the futures. The US dollar finished flat and interest rates were just a touch lower. The XAU and GDX had fractional losses on light volume. The short term indicators for GDX are still overbought. If the markets do drop tomorrow on higher inflation the gold shares will probably go with them. I still like the idea of the GDX August calls on a near term pullback. I may even place an order for them overnight. We are waiting for some kind of move lower back towards the down trend line that was recently broken in GDX. Hasn't happened yet. Perhaps will have to wait and try the September GDX calls here. Mentally I'm feeling OK. The VIX was lower today which doesn't fit with a down market. The short term indicators here simply remain oversold. We'll see how the markets react to tomorrows data and go from there. The US/Iran conflict has been quiet lately but that won't last. Europe was mixed and Asia lower with the exception of Japan. All eyes on tomorrows inflation report.

Another slow summer Monday as the Dow dipped 61 points on good volume. The advance/declines were negative. The summation index is starting to track sideways again. The NASDAQ led the way lower but the losses were small for all the major indices. It appears to be a waiting game on the inflation data due Wednesday and Thursday. The short term indicators for the S&P 500 are traveling sideways in overbought territory. I did place an open order for the SPY August puts but it wasn't filled. I'm leaving it out there. It will take some gain in the S&P to be filled and that may not happen before Wednesday. It would be a short term trade and out before the end of the week if it gets filled. Gold continues to shine with the futures up another $48. The US dollar was higher along with interest rates. The XAU was up 2 1/3 and GDX added over 1/2. Volume was average. GDX remains short term overbought on the daily indicators. Any pullback here would perhaps give us a shot at the GDX August calls as buyers have returned to this space in force. Mentally I'm feeling tired. The VIX was higher today which fits a down market. The short term indicators remain oversold. The VIX is well below the 20 level as the bulls are in charge. I will have to decide tomorrow if I want to pay up for the SPY August puts. Probably not is my feeling at the moment but we'll have to wait and see. Asia was higher and Europe mixed to begin the trading week. I'll keep an eye on tonights headlines.

Buyers returned today as the Dow rose 151 points on good volume. The advance/declines were around 2 to 1 positive. The summation index is back to trending higher. The jobs report was weaker than expected and we had a gap higher at the open. There was some back and forth during the day but stocks remained positive throughout. The NASDAQ was the leader and that's a plus for the bulls. The S&P 500 had a decent gain and closed at a new all time high. The short term indicators here are now moving sideways in overbought territory. The sell signal we received turned out to be short lived but that was not unexpected. There is no overhead resistance for the S&P. Gold continued its run higher as the futures were up $103. The US dollar was lower along with interest rates. The XAU was up 23 1/2, while GDX climbed almost 6. Volume was heavy again to the upside. GDX is short term overbought and will probably stay that way. Gold and the gold shares had a tremendous week to the plus side with huge gains. GDX was up 20% in just a week, breaking through down trend lines that were in charge. I still like the idea of the GDX calls on a pullback but the lions share of the gains have most likely already been made. Mentally I'm feeling a bit frustrated as taking the big loss in the gold share calls last month probably helped deter me from trying them again last week. There was an opportunity and I let it slip through my hands. It has happened before and it will probably happen again. The market doesn't care. The VIX was lower to a new six month low. It remains very oversold on the short term indicators but can stay that way during rallies. I will be going over all the charts this weekend but I do have a trade in mind already for next week if the market cooperates. Inflation data will be out on Wednesday and Thursday of next week. If the market continues higher early in the week and the NASDAQ does not break out to a new all time high I'll be looking at the SPY August puts. It would be a short term trade to be entered prior to the inflation numbers. Market rarely cooperate though. Plus we remain at the mercy of the next headline out of the US/Iran conflict. Asia was once again mixed and Europe higher to close out the week. It's Friday afternoon and time for a break.

Hanging around on a summer Thursday but the Dow got clocked to the tune of 464 points on heavy volume. The advance/declines negative. The summation index is beginning to stall. Waiting on tomorrows jobs report. The Dow led the way lower and that isn't the most bearish scenario. The NASDAQ and S&P 500 posted minor losses. The short term indicators for the S&P are starting to trend a bit lower in overbought territory. My guess is that the past two days were spent digesting the big previous gains. We'll know more after tomorrows price action. Gold finished flat on the session. The US dollar was higher along with interest rates. The XAU and GDX had fractional moves one way or the other on average volume. The short term indicators on GDX are now overbought. I'll consider the August calls here for GDX if we get some near term decline towards the recently broken down trend line on the daily and weekly charts. Mentally I'm feeling OK. The VIX was lower today which doesn't fit with a negative market. The short term indicators for the VIX remain oversold. I'm still not sure what comes next for the VIX. At this point it appears that we'll let tomorrow come and go. Then we will focus on next week and a possible trade there. Still at the mercy of the next US/Iran conflict headline. Asia and Europe were mixed overnight. We'll see how the market reacts to the employment report tomorrow.

Back to a mixed picture as the Dow rose 263 points to close at another record high on heavy volume. The advance/declines were negative. The summation index is still trending higher. Both the NASDAQ and S&P 500 posted losses on the session with the NASDAQ leading the way lower. The Dow along with the S&P 500 and other major indices have recently posted record highs. The NASDAQ however has not. This is a fly in the ointment for the recent rise. I expect that it will work itself out and the NASDAQ will post new all time highs soon. But if it doesn't we'll need to watch out. The S&P had a one day downside reversal today as it opened higher and closed lower. The short term indicators here are beginning to stall in overbought territory. One of the indicators that we use is now flashing a sell signal for the S&P. There is a chance that the S&P will return to the breakout point of 7600 but that would be viewed as an opportunity to try the SPY August calls. Gold soared as the futures climbed $154. The US dollar was lower and interest rates slightly lower. The XAU gained 22 1/4 and GDX jumped 5 3/4. Volume was heavy to the upside as GDX got above the down trend line on its daily chart that has been in effect since the beginning of the year. The short term indicators here are pointing up but are short term overbought now. Any decline in the gold shares can now be bought. If we see a snap back to the line that was broken, the GDX August calls will be in order. We believe that todays high volume break out above the down trend line for GDX is for real and will now chase this move if given the chance. Mentally I'm feeling OK. The VIX had a wide range but finished the day lower. The short term indicators for the VIX are moving sideways in oversold territory. During rallies the VIX can remain oversold for some time. We'll see how it goes this time around. Waiting on a so called peace agreement for the US/Iran conflict and Fridays employment report. Asia was higher and Europe mixed overnight. We'll see how it goes tomorrow.

Powering higher to record levels as the Dow gained 907 points on pretty heavy volume. The advance/declines were 2 to 1 positive. The summation index is moving higher. The NASDAQ continues to lead the way and that's a plus. New all time closing highs for the Dow and S&P 500. The S&P has broken out to the upside from the sideways congestion zone. The short term indicators here continue higher and are almost overbought. There is no overhead resistance now for the S&P so we will have to see how far it can go from here. Gold was up $43 on the futures. The US dollar finished flat again and interest rates were lower. The XAU was up 8 3/8, while GDX added 1 7/8. Volume was just shy of average. The short term indicators for GDX are still trending higher. GDX has now broken above the down trend line on its weekly candlestick chart. However the week isn't over yet. The daily chart still has the down trend line in effect. A close above 79 would be a positive sign there. Obviously we've missed out on the calls for GDX but we'll see where things go from here. Mentally I'm feeling a bit tired. The VIX was up today and that does not fit with a huge move higher in stocks. The short term indicators here are starting to move sideways in oversold territory. I'm not sure what comes next for the VIX. The conflict in Iran along with earnings continue to be on the forefront of trading for now. There is still plenty of time in the August option cycle. Europe was up and Asia mixed overnight. I'll keep an eye on tonights headlines.

Big gains for stocks today as the Dow climbed 693 points on heavy volume. The advance/declines were better than 2 to 1 posiitve. The summation index is trying to turn higher. The NASDAQ led the way up and that's a plus for the bulls. The S&P 500 was up 110 points. The short term indicators for the S&P are moving up and some have room to go before hitting overbought territory. This index is knocking on the door of new all time highs and at this rate will hit them tomorrow. I have to admit that my prognosis for the SPY August puts here is wrong. Todays market breadth was much better and it appears that the S&P will break out to the upside of the recent 3 month congestion zone on the daily chart. That doesn't mean that we won't try the puts at a later date but it does mean that we've missed this move higher. Gold was flat on the futures. The US dollar finished flat as well and interest rates dipped. The XAU was up about 7 1/2, while GDX gained around 2 points. Volume was pretty light here as the interest in the gold shares remains tepid. The short term indicators for GDX are back to moving up with room to go. GDX is once again close to breaking the down trend line of its weekly chart. That would be a major positive if it happens. Mentally I'm feeling OK. The VIX was just a bit lower today. Some of the short term indicators here are starting to trend sideways. Not all are oversold yet. I'm undecided about what's next for the VIX. More earnings this week and the jobs report on Friday. However the market remains hostage to the next headline on the US/Iran conflict. More bombing would probably send things lower and an agreement of a peace deal would send things higher. The reality of the situation is that we don't know what will happen next. We will stick with the technicals and can say that if the S&P breaks out here it would be bullish for stocks. Asia was mixed and Europe higher with the exception of the FTSE to begin the trading week. I'll keep watch on the overnight developments.

Upside follow through to yesterdays big gains as the Dow climbed 277 points on heavy volume to close out the month of July. The advance/declines were slightly negative. The summation index is still trending sideways in a slight downward channel. The gains would have been even better but there was a drop at the close as somebody was getting out. Once again the NASDAQ led the way and that is encouraging for the bulls. The short term indicators for the S&P 500 are still moving up with room to go. Perhaps my view of caution here is wrong but I'm sticking with it for now. Again today the breadth isn't near what it should be for a market traveling higher. We are looking at the SPY August puts. Gold was off over fifty bucks today to finish the week. The US dollar was slightly higher and interest rates rose. The XAU lost ten points and GDX slid 2 2/3. Volume remains light here. Some of the short term indicators on GDX have turned lower while others are moving sideways. Yesterday I failed to mention that GDX had made it back to the longer term down trend line from the beginning of the year on its weekly chart. It was turned away again today. Getting through that line would further strengthen the case for the GDX calls. But it hasn't happened yet. If the short term indicators for GDX continue to weaken that line will remain in effect. Mentally I'm feeling tired. The VIX bounced around today but finished lower which fits with an up market. The short term indicators for the VIX are heading lower with some at the mid-range level. The VIX looks like it wants to go lower but I certainly don't have a good handle right now on this gauge. A lot going on this past week as we saw big moves in both directions for stocks. Definitely not a quiet summer thus far. I'll be checking the charts seeking clues to the next trade over Saturday and Sunday. Asia and Europe were higher to close out the week with the exception of the FTSE. It's Friday afternoon and time for a rest.

Bouncing back in a big way today as the Dow gained 614 points on heavy volume. The advance/declines were positive. The summation index is heading sideways. The rally was led by the NASDAQ which is a plus for the bulls. Inflation data came in where expected. There was a gap higher at the open and after bouncing around stocks took off to the upside. The short term indicators for the S&P 500 are now moving up. The S&P is trying not to roll over now as it trades in a channel defined by the levels of 7600 and 7250. Todays breadth wasn't all that impressive considering the move higher for stocks. I'm still in the camp for caution as the market will have to prove that it wants to go higher for me. Gold was up $72 on the futures. The US dollar got crushed yet interest rates finished a bit higher. The XAU was up 12 3/4 and GDX climbed over 3 points. Volume was average. The short term indicators for GDX are back to moving up with some almost overbought. At this point it appears that I've missed the GDX August call trade but we'll see. I'm not going to chase it here but that may not be the right strategy. Mentally I'm feeling OK. The VIX had a big drop which fits with a strong upside day. The short term indicators here are heading down with conviction. After a one day breach of the 20 level the VIX is now comfortably below there. It looks like the VIX wants to continue to decline but my views of this indicator haven't been correct lately. Europe and Asia were mostly higher overnight. We'll close out the week and the month tomorrow.

Volatility is now the name of the game as the Dow plunged 1153 points on pretty heavy volume. The advance/declines were better than 2 to 1 negative. The summation index is starting to turn back down. The day started with a steady decline but turned around after the Fed announcement to move higher for the session. But the final hour found relentless selling as buyers disappeared. The Dow led the way down with the NASDAQ falling 1 3/4% and the S&P 500 off 1 1/2% by the close. The short term indicators for the S&P turned lower and they were already oversold. That is not a good sign. Perhaps the after the bell tech earnings can hold things together for the bulls. The daily chart for the S&P looks like it is breaking down though. Maybe tomorrows inflation data can provide a spark of hope for the bulls. But the charts say otherwise as it looks like this could be a repeat of the rollover that we saw in March. Stay tuned. Gold was up $11 on the futures but was higher during the session. The US dollar was lower and interest rates finished mixed. The XAU dipped 2 1/2 and GDX lost 2/3. Volume was above average. The short term indicators on GDX are moving lower. I am going to try and wait for GDX to reach oversold on the daily chart before trying the calls there again. It might take a few days or more if we do see more selling going forward. Mentally I'm feeling OK. The VIX was higher today and closed above the 20 level. The short term indicators here have turned back up and some are almost overbought. With the VIX above 20, expect volatility to continue. What it means for the SPY trades is that we'll be looking for entry points to try the August puts. Rallies are to be treated as suspect. Trading durations should be shortened up. There will be opportunities so it will be the matter of whether you can take advantage of them or not. Markets remain at the mercy of the US/Iran conflict. Still plenty of time in the August option cycle. Europe was mixed and Asia higher with the exception of Japan overnight. We'll keep an eye on the evenings reports.

Hanging around again as the overall picture is still mixed but the Dow gained 537 points on heavy volume. The advance/declines were positive. The summation index is beginning to stall. Once again the NASDAQ posted a small loss. The S&P 500 recorded a small gain. The short term indicators for the S&P are turning up with plenty of room to go. The Fed should get things going one way or the other tomorrow. Some big tech earnings out as well but after the close. We will remain on the sidelines with regards to the SPY options for now. Gold dropped $53 on the futures. The US dollar was lower along with interest rates. The XAU lost around 6 3/4, while GDX shed 1 1/2. Volume is still light here. Some of the short term indicators for GDX are turning lower with others heading sideways. Waiting for the next signal before trading this space again. We are still looking at the calls though. Mentally I'm feeling OK. The VIX was a bit lower today. The short term indicators here are trying to turn back down. Not exactly sure where the VIX goes from here but the daily candlestick chart appears to want to head lower. I haven't had a good feel for the VIX lately. Just waiting on the Fed at this point. Asia was generally lower as Japan got whacked. Europe finished to the upside. We'll see what tomorrow brings.

Another day of indecision but the Dow managed a gain of 262 points on good volume. The advance/declines were positive. The summation index is still trending lower. The NASDAQ posted a small loss and the S&P 500 finished basically unchanged. We opened with a huge gap higher but then sold off hard all the way back into negative territory. No summer doldrums here. The rest of the day was spent mostly going sideways in negative territory until the final hour. I'm not sure what's going on here but the S&P remains oversold on the short term indicators. We've got the Fed on Wednesday and inflation data on Thursday to deal with. End of the month on Friday. Option premiums remain elevated but I am leaning towards the SPY August puts at some point. Gold was up $15 on the futures. The US dollar was a bit higher and interest rates a bit lower. The XAU was up 1 1/2 and GDX rose 1/2. Volume was pretty light. The short term indicators for GDX are still moving up with room to go. I'm still considering the GDX August calls but not in a hurry to purchase them as the light volume for the gold shares isn't exactly a bullish sign. Mentally I'm feeling OK. The VIX was up slightly to begin the week. The short term indicators here are moving sideways in mainly overbought territory. The daily candlestick chart here looks inconclusive. We will remain patient and on the sidelines for now. Asia and Europe were higher to start off the week. I'll keep an eye on tonights headlines.

A mixed bag on a summer Friday as the Dow gained 235 points on good volume. The advance/declines were positive. The summation index is moving lower. The NASDAQ lost over 150 points, while the S&P 500 had a very slight rise. As long as the NASDAQ continues to lead the way lower I don't see any sustainable rallies in the near future for the overall market. I could be wrong but probably not this time around. Some of the short term indicators on the S&P are beginning to stall and others are moving lower. Not yet completely short term oversold here. The market remains in headline risk mode and at the mercy of the US/Iran conflict. Gold was up five bucks on the futures. The US dollar finished flat and interest rates had a small bounce up. The XAU and GDX had slight fractional moves one way or the other on very light volume. The short term indicators for GDX are stalling at the mid-range level. I still like the idea of the GDX calls going forward. However the lack of volume in this space still shows that there isn't much trading interest here at the moment. Summertime might have something to do with that along with a negative fundamental picture right now for the precious metals. It could be that sideways price action is the most we can expect from this group for now. I'll take another look at things over the weekend. Mentally I'm feeling OK. The VIX was slightly lower today. The short term indicators here are hanging around and I'm not sure what to expect from this indicator next. I'll be checking out the charts over the weekend as usual. We've got a Fed meeting next week along with some inflation data so things should get interesting. Asia lower and Europe higher to close out the week. It's Friday afternoon and time for a break.

To the downside with some conviction as the Dow fell 507 points on heavy volume. The advance/declines were around 3 to 1 negative. The summation index is now heading lower. A late bounce in the last ten minutes prevented things from being worse. The NASDAQ continues to lead the way down and that is not a good sign. Trading began with a huge gap lower and never recovered. The S&P 500 lost ninety points. Most of the short term indicators there are heading south and not yet completely oversold. We can forget about new all time highs on the S&P for now. Gold dropped a hundred bucks on the futures today. The US dollar was up and interest rates continue to climb higher. The XAU lost 6 3/4, while GDX shed 1 2/3. Volume was light to the downside. Considering the drop in gold itself the gold shares held up rather well. That hasn't been the case lately and that shift has me thinking that the gold share calls might be the proper trade going forward. A few of the short term indicators on GDX are beginning to stall. I would like to see GDX get short term oversold again during the August option cycle but that may not happen. Mentally I'm feeling a bit tired. The VIX was up today and that fits todays price action. The short term indicators here have turned back up. Yesterday the daily chart for the VIX looked like it wanted to go lower. After today I'm not sure what to think. Still below the 20 level though. With the summation index now heading down we will look at the SPY August puts at some point. Premiums remain high since there are over four weeks left in the August option cycle. A light volume drift higher from here would be the ideal scenario. Markets rarely cooperate. Still at the mercy of the US/Iran conflict. Europe was down and Asia up with the exception of India overnight. We'll close out the trading week on Friday.

Pretty much a sideways summer session as the Dow dipped 6 points on good volume. The advance/declines were negative. The summation index remains in a channel. The NASDAQ led the way lower which is not a plus. Waiting on after the bell earnings as there isn't much to trade off of this week. The S&P 500 posted a small loss. The short term indicators there have begun to stall at the mid-range level. No clear signal one way or the other on the S&P so I will remain on the sidelines with regards to the SPY options for now. Gold continued higher as the futures gained $63. The US dollar was a touch lower and interest rates continued to climb. The XAU was up 9 3/4 and GDX added 2 1/2. Volume was average here. The short term indicators for GDX are moving up. It appears that I've missed this move higher for the gold shares but we'll have to see where it goes from here. I still like the idea of the GDX calls moving forward. Mentally I'm feeling OK. The VIX was bit lower today. Its short term indicators are stalling. The daily candlestick chart here still looks like it wants to go lower. Trying to remain patient here as we look for the next trade. The markets are still in headline risk mode. We will wait for the next good technical signal and go from there. Not sure how long that will take. Asia was generally lower and Europe higher overnight. I'll keep an eye on tonights events.

Higher from the start today as the Dow gained 385 points on heavy volume. The advance/declines were positive. The summation index remains in a rising channel. The NASDAQ led the way up and that's a plus for the bulls. Waiting on earnings reports as there is not much economic data due out this week. Some of the short term indicators for the S&P 500 have turned back up but they never made it all the way down to oversold territory. Waiting on some kind of signal here as option premiums are high and there is plenty of time in the August option cycle. Gold rallied today as the futures were up $73. The US dollar was higher along with interest rates. Normally higher rates along with a strong US dollar would be bearish for gold. Not sure what's going on here. The XAU climbed 15 3/4, while GDX added 3 1/2. Volume was light. The short term indicators for GDX are starting to move up from oversold territory. Will they finally make it higher this time around? Stay tuned. I still like the idea of the GDX calls going forward but will not chase this move as all the recent previous attempts to move up have failed. I will also try to not let the previous losing GDX call trade influence the next trade here. Mentally I'm feeling OK. The VIX dropped and that fits with a rally in stocks. The short term indicators here are now heading south and it appears that the 20 level has kept things in check. The daily candlestick chart on the VIX looks like it wants to go lower which would bode well for stocks. However we do remain in headline risk mode as geo-political tensions have not gone away. Asia mixed and Europe higher overnight. We'll see what tomorrow has in store for us.

We had one day downside reversals for most of the major averages today as the Dow fell 307 points on heavy volume. The advance/declines were negative. The summation index is still stuck in a channel. The Dow led things lower and that isn't the most bearish scenario. Still at the mercy of the next war headline and now there's earnings season to deal with as well. The short term indicators for the S&P 500 are still heading down and are not yet completely oversold. No trades in mind here yet as we don't have any technical signals in place. Gold dipped $8 on the futures. The US dollar was a bit higher as were interest rates. The XAU was down 1 1/3, while GDX slupped 1/2. Volume remains light here. The short term indicators for GDX are trending sideways in oversold territory as buyers are yet to be found. That said, we did see on the longer term charts that one of our preferred indicators for GDX is getting close to a buy signal. If that signal is hit I will be trying the GDX calls again. Hasn't happened yet but we are keeping an eye on it. Mentally I'm feeling OK. The VIX was a touch lower today which doesn't fit with a down market. Some of the short term indicators here are now moving sideways and are not yet overbought. Not sure what's next for the VIX. Getting close to the 20 level but still shy of it. If the VIX gets above 20 we'll see more volatility. No summer doldrums so far for this year. Asia and Europe were mixed overnight. We'll keep and eye on tonights developments.

Expiration Friday was a downer as the Dow fell 406 points on heavy volume. The advance/declines were around 2 to 1 negative. The summation index remains in an ascending sideways channel. There was a huge gap lower at the open and the market spent the rest of the session trying to make it back. It didn't make it. The NASDAQ led the way down and that is not a plus. The short term indicators for the S&P 500 have rolled over with room to go. It looks like new all time highs there will have to wait. The market remains at the mercy of the next US/Iran headline. Gold found a bid and the futures rose $27. The US dollar finished around unchanged as were most interest rates. The XAU was off 1 1/4, while GDX dipped 1/8. Volume was light. GDX continues to remain short term oversold. There remains no interest in owning the gold shares. Mentally I'm feeling OK. The VIX jumped up today which fits the downside day for stocks. The short term indicators here are moving up. Another day like today would put the VIX back over the 20 level. Hasn't happened yet. I'll be checking the charts over the weekend to try and come up with the next trading idea. Asia and Europe were lower with the exceptions of India and the FTSE. It's Friday afternoon and time for a break.

Heading lower today and it would of been worse but we got a pop back up in the last 10 minutes. The Dow dipped 105 points on heavy volume. The advance/declines were positive. The summation index remains in a sideways channel. The NASDAQ led the way lower. Retail sales came in where expected. The S&P 500 was lower and has remained in a sideways pattern for a little over a week. The short term indicators here are trending sideways with most in overbought territory. I've been looking for a new all time high on the S&P but the longer it takes, the less I think it is going to happen. Markets can stay overbought for quite a while at times though. The question is whether or not now is one of those times. Gold remains weak and dropped $68 on the futures to close below $4000. The US dollar was up and interest rates had a slight gain. The XAU lost 11 3/4 and GDX dropped 2 1/2. Volume was a bit above average. GDX closed below the near term support at 73. The short term indicators are still oversold. The longer term up trend line support for GDX comes in at 55. Is it going to go that low? We'll see. Mentally I'm feeling a bit tired. The VIX was back up today as it tries to make up its mind where to go. The short term indicators on the VIX are back to pointing higher. These indicators have moved back and forth for a couple of weeks. So you can see that the market is trying to make up its mind on which way to go. Europe and Asia finished mixed. We'll close out the week tomorrow.

Back and forth today and the Dow managed a gain of 150 points on heavy volume. The advance/declines were positive. The summation index is moving sideways. The inflation data was weaker than expected just like yesterday. The NASDAQ is still leading the way higher and that's a plus for the bulls. The S&P 500 posted another modest gain as the short term indicators here remain overbought. Continuing to wait and see if we can get to a new all time high on the S&P as earnings season begins. However we are still at the mercy of the US/Iran renewed conflict. Gold was off four bucks as it bounced around today. The US dollar was lower along with interest rates again. The XAU was off 2 3/8, while GDX shed 7/8. Volume remains light. The short term indicators for GDX are tracking sideways in oversold territory. I booked a 95% loss on my GDX July call trade. Did not have a stop loss order this time around and it cost me. I let a recent previous trade where the stop loss order stopped me out of a big winner dictate my tactics here. That was foolish. Should have been out of this trade yesterday when GDX opened with a big gap higher and could not move up from there. Also should have realized that nobody is interested in gold now as the light volume proves. Not sure if I simply fell in love with this idea or did not want to admit it wouldn't work. GDX is still holding on to the support at 73. Not sure if I want to try the August calls here. Mentally I'm feeling disappointed. Just took my biggest loss of the year with nobody to blame but myself. But you still have to move on because the market certainly doesn't care how you feel. The August option cycle has an extra week built in so premiums will be high. The VIX was lower today. It remains short term oversold with some of short term indicators drifting down. Not sure where the VIX is heading next. Asia higher and Europe lower overnight. I'll keep an eye on tonights headlines.

Moving up today on weaker than expected inflation data but the Dow only managed a gain of 9 points on light volume. The advance/declines were positive. The summation index continues sideways. The NASDAQ led the way higher and that's a plus. The S&P 500 posted a small gain. The short term indicators there have turned back up in overbought territory. Perhaps there is still a shot at new all time highs this week. Gold bounced as the futures gained $56 but it was off from the best levels on the day. The US dollar was lower along with interest rates. The XAU rose 4 1/2 and GDX was up 1 1/2. Volume here remains light as there is no interest in buying the gold shares. GDX had a huge gap higher at the open and then sold off for the rest of the session. My GDX July calls remain dead. I will book the loss at some point this week. Mentally I'm feeling OK. The VIX was lower and some of its short term indicators have turned back down. I'm not sure where it is heading next. The market has a summer feel to it as many players are out and the trading day seems slow. Being held hostage again by the US/Iran conflict plays a part as well. We'll get more inflation data tomorrow followed by retail sales on Thursday. Asia was up with the exception of India and Europe barely moved higher again. We'll see how things go tomorrow.

Lower to begin options expiration week as the US/Iran conflict has once again taken center stage. The Dow lost 138 points on light volume. The advance/declines were negative. The summation index is moving sideways. Markets are now held hostage by headline risk as whatever cease-fire agreement that there was isn't working. The NASDAQ and S&P 500 posted decent losses with the NASDAQ leading the way. Inflation data out tomorrow and we expect it to show a decline. However if some war news breaks out overnight it may not matter. Some of the short term indicators for the S&P have turned lower and it remains in short term overbought territory. The new all time highs on the S&P 500 that I am looking for won't happen if we continue down from here. Gold got clobbered to start the week as the futures fell over a hundred bucks. The US dollar was higher along with interest rates. The XAU dropped around 7 1/2, while GDX lost 2 1/8. Volume was a bit below average. The short term indicators for GDX rolled back over in oversold territory. It is trying to hold on to the 73 level. My GDX July calls are dead. GDX has simply continued to stay oversold without anything more than a minor bounce. I thought about getting some more calls today at a lower strike price ahead of the inflation data due out but did not. The US/Iran conflict flare up has changed the trading environment. However my management of the trade was wrong as it did show a profit that I did not take early on. Mentally I'm feeling OK. The VIX jumped up today which fits a down market. The short term indicators here have turned up. If the VIX continues to rise it will spell more trouble for stocks. The new Fed chairman will be speaking to Congress in the morning for the next two days. That could influence where stocks are going as well. So it should be an interesting week despite the light volume that we've seen lately. Asia was mixed and Europe barely higher to begin the week. We'll keep an eye on the overnight developments.

Today was a summertime Friday as the Dow gained 149 points on pretty light volume. The advance/declines were positive. The summation index is tracking sideways. We saw some brief volatility early on and then the market drifted higher for the rest of the day. The S&P 500 led things up today and the NASDAQ posted a small gain as well. However the volume this week has been light as many players are out. Things should perhaps pick up next week with option expiration and inflation data on tap. But you can also make a case that the summer doldrums are starting to kick in. Some of the short term indicators for the S&P 500 remain overbought and others are on their way there. I still believe that we'll be setting new all time highs for the S&P at some point next week. Gold dropped $25 on the futures. The US dollar finished slightly higher as did interest rates. The XAU slipped 1 1/4 and GDX shed 1/4. Volume here was extremely light as there is no interest in the gold shares at the moment. That should change next week. The short term indicators for GDX are trying once again to turn up from the oversold level. My GDX July calls are solid losers but at this point I'm committed to holding them until the inflation data starts to come out on Tuesday. You really don't want to be stuck in a losing trade over the weekend but that is the position that I find myself in. Mentally I'm feeling OK. The VIX closed at a fresh new low as the short term indicators head sideways in oversold territory. It is looking like the rally in stocks can continue according to the VIX. I'll be looking over the charts this weekend but I do not anticipate any SPY option trades next week right now. The chance to try the calls there has passed the ideal entry point. I'll wait and see what happens with the gold shares as we move forward. Asia was higher and Europe mixed to close the week overseas. It's Friday afternoon and time for a rest.

Back to the upside today as the Dow gained 139 points on light volume. The advance/declines were positive. The summation index is moving sideways. Good gains for both the NASDAQ and S&P 500 with the NASDAQ leading the way. The market remains at risk from the next headline. The short term indicators for the S&P have turned back up but remain in overbought territory. My thinking is that the S&P will be on its way to new all time highs next week on benign inflation data. Probably too late for the July SPY calls as the lows yesterday would have been the ideal purchase time. But we'll see what happens between now and Tuesday of next week. Gold bounced back $49 on the futures. The US dollar finished about unchanged and interest rates were slightly lower. The XAU gained 10 1/2, while GDX added 2 1/8. Volume was light. The short term indicators for GDX are trying to turn back up again from oversold territory. My GDX July calls remain solid losers. We'll see how GDX finishes the week tomorrow. Mentally I'm feeling OK. The VIX was lower today which fits an upside market. The short term indicators here have turned back lower in oversold territory. The VIX can remain oversold during rallies so we'll have to wait and see where stocks go from here. The light volume today is not a positive for the bulls. Asia and Europe were generally higher overnight. We'll close out the trading week tomorrow.

A mixed bag today but the Dow lost 576 points on good volume. The advance/declines were better than 2 to 1 negative. The summation index is beginning to stall. Middle East tensions are back in the picture. The Dow led they way lower but the NASDAQ did post a small gain on the session. The S&P 500 had a small loss after being down hard early in the morning. The short term indicators there are still tracking sideways. Not sure what to expect next here as we are back in a headline risk environment. The technical picture isn't clear but the S&P did hold at its 50 day moving average. Gold dropped $65 on the futures. The US dollar finished about unchanged and interest rates went up. The XAU fell 11 1/4, while GDX shed 2 1/4. Volume was above average to the downside. GDX closed below its support at 73. The short term indicators there are trending lower in oversold territory. My GDX July calls are all but dead in the water now. I did not use a stop loss order on this trade and it looks like that was a mistake. Once again the management of the trade was poorly executed. I will still hold on to it for now but it is in the cut the loss mode. Mentally I'm feeling OK. The VIX was up today but finished well off of the best levels for the session. The short term indicators here are starting to rise. If that continues we'll see lower stock prices going forward. Europe and Asia were lower overnight with the exception of Hong Kong. I'll keep an eye on tonights headlines.

Sellers had the upper hand today as the Dow fell 130 points on good volume. The advance/declines were negative. The summation index continues to move forward. Yesterday the NASDAQ led the way up and today it led the way down. This week could end up going nowhere as there isn't much economic data to trade off of or earnings reports to speak of. I'm not saying it will be the summer doldrums but I believe that next week will provide more movement. I would not be surprised if we see a negative bias for the rest of the week as well. I could be wrong. The short term indicators for the S&P are stalling. Gold fell forty bucks on the futures. The US dollar was up and so were interest rates. The XAU fell 10 3/4 and GDX lost around 3. Volume was about average. Some of the short term indicators for GDX have turned back down. Another day like today would take us to fresh lows there. It appears that yesterday was the day to exit our GDX July call trade as it is back to being a loser. A week and a half left on this trade. It does not look as promising as it once did but we'll see. Mentally I'm feeling OK. The VIX was a bit higher today which fits a down market. The short term indicators here have started to turn up from oversold territory. The most the bulls can hope for here is that the VIX trends sideways. Asia and Europe were down overnight. We'll see what tomorrow brings.

Stocks moved higher coming back after a long holiday weekend as the Dow gained 155 points on good volume to a new high. The advance/declines were positive. The summation index is trending higher. The NASDAQ led the way up and that's a plus for the bulls. The S&P 500 was up over fifty points and made it through the short term down trend line. The short term indicators here are trending up. Not yet short term overbought on the S&P. Gold was up $48 on the futures. The US dollar finished unchanged and interest rates dipped slightly. The XAU was off 1 1/3, while GDX rose 1/3. Volume was light. Gold itself up and the gold shares not moving is not a good sign as it shows no interest. The short term indicators for GDX are starting to move sideways. The gold shares had a big gap higher at the open and then sold off before moving sideways for the rest of the session. Not a promising picture. The GDX July calls that I own are still showing a profit but it is possible that early today was the time to sell them. My thinking here though is to hold this trade until sometime next week. The down trend line on the daily GDX chart comes in at 84 which is where I think it will get back to. Mentally I'm feeling OK. The VIX was lower today which fits an up market. The short term indicators here are now very oversold. They can stay that way during rallies but some near term selling would not be unexpected. That would not bode well for holding onto the GDX calls that we own but if it is just a pause the trade could probably handle that. We'll see. Asia was generally higher and Europe mixed to begin the week. I'll keep an eye on the overnight developments.

It was another back and forth session for the overall market but the Dow plowed ahead with a gain of 594 points on heavy volume to a new all time high. The advance/declines were positive. The summation index continues to trend higher. The jobs report came in weaker than expected and stocks took off to the upside early. As quick as they went up things turned around and were quick to go back down. A final half hour rally saved the S&P 500 but not the NASDAQ as it dropped over 200 points. The S&P finished basically unchanged. It is still hanging around the near term down trend line that it hasn't been able to break through. The short term indicators for the S&P are trending sideways. So the jury is still out with regards to which way things will go here. Gold was up over fifty bucks today. The US dollar was lower and interest rates finished mixed. The XAU climbed 11 3/4, while GDX was up 3 1/3. Volume was good to the upside. The short term indicators for GDX are starting to move north. Our GDX July calls are now showing a profit. The management of the trade from here will be the key to the trade as it always is. A continued rise in GDX from here would be welcome but we know that markets go where they want. There is still a down trend line in effect here however it is several points away. We'll have an extra day over the weekend to try and decide the proper course of action from here. Mentally I'm feeling OK. The VIX was lower today. The short term indicators here remain oversold and are starting to trend sideways. Not sure where it is going next. The Dow leading the way isn't the most bullish scenario. The lagging NASDAQ isn't a plus as well. I'll go over the charts this weekend and take it from there. Not a lot of economic data due out next week. Europe was higher and Asia mixed overnight. It's Thursday afternoon and time for a rest. Enjoy the 4th of July.