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

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

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

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

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

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

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

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

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

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

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

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

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

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