The Dow closed the week with a huge gain of 246 points on good volume. Advance/declines were over 6 to 1 positive. Banks led the way and that is a positive for the market. We should see some follow through on Monday. I have no OEX trades in mind but if it sets up properly, I'll try the puts next week. We'll see. Gold lost a couple bucks and the XAU dropped 1/2. ABX, GG and NEM were all down fractionally with GG leading the way. We are oversold here on a daily basis but there is no interest in the gold shares. Volume was weak again today. I will probably try the May calls here anyway if we have any weakness next week. Why? The technicals point to it. However there is also the possibility that we simply break down from here on the gold shares and that is the risk you take in this trade. I'll think about it over the weekend. Mentally I'm feeling OK. Expiration week is the next event and it looks like it could be strong early and then we'll see what happens. That's a guess. It's a long weekend so perhaps I'll relax for a couple of days before I try to come up with some type of game plan for next week. I'll take a closer look at the charts and go from there. For now it's time for a break.

The Dow gained 47 points today on the recent light volume we've seen. It is a holiday week. Advance/declines were over 2 to 1 positive. Not exactly sure where we're going here as it is a sideways affair. I suppose that I'll wait until next week for the OEX. Gold gained a couple bucks while the XAU lost about a half. Fractional losses for ABX, GG and NEM in lackluster trade. I'm looking at the May calls for the gold shares. I don't know if it will work but that is my focus at the moment. Interest in gold has waned which could be a problem for the long side. But we are getting oversold on a daily basis and I will probably do something next week. Mentally I'm feeling OK. Finish up the short week tomorrow and take it from there. No need to press things here because there really isn't much going on. The market is kind of acting like it can in the April cycle. Sideways with not really any great trading opportunities as yet. So it's the sidelines as it has been. I'll keep an eye on things and remain patient.

No buyers today as the Dow lost 186 points. Advance/declines were over 3 to 1 negative and the volume was light. It looks like the OEX put trade will be put on hold because we have already worked our way lower for now. Perhaps it will set up for the calls next week. Hard to say. We could get sideways action which is sometimes typical for this time of year. So it's a time to be patient and wait for the proper set up. Gold gained $10 today and the XAU managed to gain 2/3 of a point. Not encouraging for the long side. ABX, GG and NEM had fractional moves both ways on light volume. No interest in gold at the moment. I do think that I'll try the May calls there when the stochastic reaches the bottom of its range. Could be soon. However the weekly charts don't look promising for the long side. So it is a tough situation to trade for now. I'll try and remain patient. Mentally I'm feeling OK. Only 2 trading days left for this week, with a long weekend approaching. Not a time to be too bold I think. I would like to do some type of trade for the April cycle but nothing is looking clear at the moment. As time goes by the risk increases. So it's the sidelines for now and I'll keep an eye on things going forward.

Weakness for Monday as the Dow lost 41 points on average volume. Advance/declines were negative. We were getting to overbought so a pullback wasn't out of the question. I don't think it's anything major. I'm looking for the market to continue higher into early next week and then a better drop. That's what I'm hoping I guess because the next trade will be OEX puts before April expiration. If it sets up properly. So we'll see. Gold lost another $25 today and the XAU fell 4 1/4. We were lower than that but came back. ABX lost 1 1/2, GG off 3/4 and NEM down a buck. Volume was light. GG and NEM finished well off their lows so perhaps we'll bounce tomorrow. ABX was at its low so the picture is mixed. I'm going to wait until the technicals get oversold on the gold shares before the next attempt at the calls. The dollar was stronger today as well. As the market rallies the safe haven play of gold loses its luster. I still like the gold shares from the long side longer term but for now it doesn't look like the place to be. I could be wrong and often am. Mentally I'm doing OK. I have somewhat of a game plan going forward but it will have to set up right. We could just bounce around here as well considering it is April. A short week here as well, the market will be closed on Friday. So I'm going to try and be patient for the OEX puts. We'll see what happens.

The Dow closed the week with a gain of 39 points on average volume. Advance/declines were positive. The employment report was terrible as expected but we continued higher. The trend remains up. You can't argue with the market. Summation index pointing higher. There is a lot of resistance coming up so I don't expect some huge upside move but you never know. The next signal looks like it will be a sell. However no OEX trades for now. Gold dropped another $10 and the XAU lost almost 7. ABX down 1 7/8, GG off 1 2/3, NEM shed 2 1/3. The volume was better than lately. Getting oversold here but we have broken down. I'm going to have to give the gold shares some time to find a bottom. Perhaps getting long the May option cycle. We'll see. Mentally I'm a bit tired. It's the end of the week and the weekend is upon us. Next week is a short week with a Friday holiday. It could be a sideways affair here for a while too. No need to press the issue here. If something looks like it has a chance to succeed, I'll give it a shot. Otherwise I'll have to remain on the sidelines. Time for a break before a check of the charts over the weekend.

The Dow climbed 216 points today on good volume. Advance/declines were 6 to 1 positive. We were up over 300 at one point. But profits were taken ahead of tomorrow employment report. The trend is up even if we sell off tomorrow. I don't expect the employment report to have any good news really. However the markets will go wherever they want. No OEX trades for now. Gold lost almost $20 and the XAU dropped 6 and change. Volume increased to the downside and that's a negative. ABX off 1 1/2, GG down 2 and NEM fell over a buck. The dollar was weaker today as well but it didn't help the gold market. Oil was higher and gold fell anyway. So perhaps the flight to safety trade in gold is now unwinding. That's a guess. However price and volume is what I try to follow and today wasn't positive for the gold shares. It could all change tomorrow but I'm going to stay on the sidelines for now. Mentally I'm feeling OK, slept well enough. Thankful that I didn't chase the gold shares here but it isn't easy trying to be patient. I'm going to have to wait for a decent signal to trade the OEX as well. Trin readings still support higher prices but some other indicators are overbought. So it's a waiting game for me at the moment.

Continuing higher as we sold off early and roared back with the Dow gaining 152 points on average volume. Advance/declines were 3 to 1 positive. The market is refusing to sell off at this point even with Mondays action. The trend is up for now and should stay that way for the April option cycle. You can't argue with price. Gold was only up a couple bucks but the XAU rose 6 points. Beginning of the month and quarter money perhaps? ABX and GG were up 1 1/2 while NEM continues to lead, up 2 1/2. The only thing lacking was the volume which wasn't that great. But nobody was selling the gold shares here either. So it looks like I missed it again for GG. We are overbought and staying there. I am going to try not to chase the gold shares here but you never know. It is frustrating but you've gotta move on. At this point I suppose I'll just wait for the employment report on Friday. Mentally I'm tired, did not sleep well or enough. I'd like to make some money here but nothing is happening for me at the moment. I will try not to press things here. So what can you do? I'll try and be patient and not do something stupid. But you never know.

We ended the month and the quarter on a positive note as the Dow gained 87 points on average volume. Advance/declines were 3 to 1 positive. We were up 200 points during the day but sold off late. Still it's not a time to be negative on the market just yet. Waiting for the employment report on Friday. No OEX trades for now. Gold gained back what it lost yesterday and sold off a touch in the aftermarket. The XAU gained 1/2. ABX was flat while GG and NEM each lost 1/2. Volume was light again. Not a lot of interest in the gold shares here lately as we move sideways. I'm still interested but we'll see. I might have to get some calls before the employment report as planned. The daily charts are still overbought though. We'll have to see how tomorrow shakes out. Mentally I'm feeling OK. Sometimes waiting for the next trade is the hardest thing to do. You get anxious because you know there is money to be made but you have to wait for the odds to get in your favor. I do not have a clear signal for the OEX or the gold shares at the moment. I'm leaning towards the GG calls trade but it isn't set in stone. If GG shows some weakness before Friday then I might give it a shot. Patience is not to be underrated.

A downer Monday as the Dow lost 254 points on average volume. Advance/declines were 6 to 1 negative. Quite a way to start the week but I don't think it is the beginning of another leg down to new lows. I could be wrong but I don't think so. We were oversold on the trin and are now more so. End of the month and quarter tomorrow. That could get things moving. The summation index is still pointing higher but that would change with another day like today. I'll be looking to get some OEX calls if a clear signal is generated. Sidelines for now. Gold lost about $7 today and the XAU dropped 2 1/4. ABX was flat while GG and NEM had fractional losses. Volume was lighter than lately. The volume pattern in the gold shares is favoring higher prices and I still would like to try the calls here. Timing is everything as usual. I may leave in an overnight order. However the indicators here still show an overbought condition and that has me concerned for the immediate upside. So we'll see. Mentally I'm feeling pretty good, slept well. I am going to try and not push things here but you never know. The employment report on Friday is the main focus for me this week. That could be the day to do something perhaps. Or maybe be positioned ahead of the number. I don't have a clear picture right now so it is probably best to wait. Hard to do though. The game is never simple.

A day late for Fridays commentary due to some appointments yesterday. The Dow lost 148 points on lighter volume. Advance/declines were 3 to 1 negative. We are a bit oversold on the trin here short term. I do think we are going to go higher but there is a lot of resistance at around 425 on the OEX. Summation index still pointing higher. The volume on the up days for the most part is greater than the volume on the down days. So we'll see. Gold lost over $15 and the XAU dropped 4 1/4. ABX lost 3/4, while GG and NEM each lost over a buck. The volume was light here though and the gold shares have the same positive volume trend as does the overall market. I still would like to try the gold shares for the April option cycle and perhaps will purchase some calls if there is weakness next week. That was the original plan to try and get long before the employment report. The dollar has stopped falling at the moment though. It is never easy. The weekly and daily XAU charts are overextended here so it's a tough call. Mentally I'm feeling good here on Saturday. Slept well and it's a day off from the hustle and bustle of the usual trading day. End of the month and the quarter coming up early next week. I'm still in the bullish camp for now but this has been a crazy market. I'll continue checking the charts this weekend and take some time to relax. Back at it on Monday.

Fresh new highs and we closed on the high of the day as the Dow gained 175 points on average volume. Advance/declines were around 4 to 1 positive. The rally off the early month lows continues. No need to think it will stop anytime soon. The long term down trend line is still quite a way off. We are breaking through the first weekly down trend line as of today in the major indices. There is some resistance to appear at around 425 on the OEX from a prior consolidation. Gold was up a few bucks today and the XAU rose a point. ABX and GG were up slightly, while NEM gained a buck. NEM continues to lead. However the volume was light today on the gold shares and perhaps we'll get more than a day of pullback. That's a guess. Money has certainly been attracted to gold lately. So we'll see. Nothing else on the radar screen at the moment. Mentally I'm feeling OK, could have slept better. So it looks like I'll let this week pass and look to do something next week before the employment report. The market is moving higher. How high is the question. I'll have to check the charts and come up with some numbers over the weekend.

Up, down and back up again as the Dow gained 90 points on good volume. Advance/declines were positive. It was a volatile day with a 300 point range in the Dow. We came back in the last hour and that's usually a good sign. The economic data is being viewed as positive for the time being. Summation index still pointing to the upside so that is what we'll look for. Gold was up over $10 and the XAU rose over 4. ABX and GG were up around a buck on better volume. NEM up 2 on good volume. The gold shares continue to outperform the metal and if we get any kind of pullback, I think that is the place to be. Overbought here though so I'm going to be patient if I can be. Money continues to be attracted to the gold shares. I'm not going to chase it though. Nothing else on my radar screen at the moment. As I've said before, sometimes the April option cycle is a sideways affair. Staying on the sidelines unless something compelling appears could be the best strategy. Mentally I'm feeling fine, slept well. Not much else for today. Final GDP will be reported tomorrow and it won't look good but I think it's already in the market. So we'll see.

Back down after yesterdays spectacular rise as the Dow lost 115 points on average volume. Advance/declines were about 2 to 1 negative. Where are we going? Overbought here but that doesn't mean we just fall apart. The market is having a nice rally and there is no reason to think that we won't head higher. Lots of resistance coming up but we aren't there yet. Just broke through the near term barrier yesterday. No OEX trades for now. Gold lost $25 today and the XAU fell 2 1/2 after being down a lot more. The gold shares are holding up pretty well here and that should be the next play. ABX down 1, GG off 1/2 and NEM dropped 3/4. Volume picked up a bit to the downside and that would be a concern going forward. GG is showing good relative strength and that is probably where I'll be looking. But it's the sidelines for now. Mentally I'm doing OK but a bit tired. The prudent thing to do here is wait for the gold shares to work off the overbought condition created by last weeks rise. That's what I'm trying to do now. There's no telling what the end of the month next week will do also. So it's a waiting game for now. Keep an eye on things and if it looks like it's time to trade, do it.

An explosive rally on the heels of the bank toxic asset program release as the Dow soared 497 points on average volume. Advance/declines were 8 to 1 positive. We have broken the resistance and are moving higher. Summation index moving higher. Is the bear market over? Maybe but I doubt it. It is more than a short term rally though so we'll see how far it goes. Gold lost a few bucks and sold off in the aftermarket. The XAU gained 1 1/2. ABX was off 1/3, GG was flat and NEM rose 40 cents. The volume was lighter than we've seen lately. I still want some gold share calls for April and that is the next play that I am looking for. We are overbought there and if we get a decline here, I will be getting long. I'll probably try GG again. GE had a good day, up around a buck on good volume. No trades there for now. Mentally I'm feeling OK. The April option cycle has begun with a bang to the upside. The premiums are expensive. There's no hurry to trade here but you still have to keep an eye on things. I'd expect some follow through to the upside tomorrow. So I'll be watching the gold shares and waiting for an opportunity to get long.

A lower expiration as the Dow lost 122 points on good volume. Advance/declines were around 3 to 1 negative. Weakness here was expected as we were quite overbought. I don't think it's the beginning of another leg down but we might test the lows. However I don't want to forget that the trend is now up. The OEX puts I sold yesterday doubled from where I sold them. I couldn't take the risk with only a day left. You have to live with your decisions and move on. Gold lost a couple bucks today and the XAU dropped 1/3. ABX was flat, GG up 40 cents and NEM gained more than a buck. Volume was average. NEM has been leading the way and continues to do so. I'll be looking at getting some April calls next week if we get a pullback. My plan for now is to be long the gold shares before the employment report in the first week of April. Gold had quite a move this week and I would expect it to take a rest before the next leg up. I could be wrong. Mentally I'm feeling fine, slept well. We are moving into the April option cycle. Sometimes the April time period is a sideways event. I'll need to watch out for that. I'll check the charts over the weekend and go from there. Time for a break.

It was a down day on the street as the Dow lost 86 points on average volume. Advance/declines were about even. We were and still are overbought and we are at resistance. So some selling was expected. I dumped the OEX puts but certainly could have done a better job there. The gain was over 50%. With only one day left in the March cycle, as much as I wanted to hold on for another day, I had to sell them. I wouldn't be surprised to see the market down tomorrow as well. But I decided to cut the risk. Gold was up another $40 today in an incredible move since the Fed announcement. It's where I should be. The XAU tacked on another 7 points. ABX up 1 1/2, GG up 2 and NEM up 2 3/4. Volume heavy again. Price and volume moving there and that tells me it's for real. I'll be looking to get long on any pullback. GE had a one day reversal, opening higher and closing lower. It ended down 20 cents on heavy volume. It could be a sign for the market to move lower near term. It led the way on the upside. Mentally I'm feeling tired with not enough sleep in the past couple of days. I certainly could have gotten a better price on the OEX puts today but got a touch greedy. I also think that holding them overnight might have worked. But there's nothing I can do about it now. Decisions must be made and then you move on. It's never easy in the game. I'll try and do better the next time.

Volatility returns as the Dow was down over 100, up over 150 and ended the day 90 points on the upside. The Fed announcement caused some crazy moves. I did buy some OEX puts as we hit the upside resistance. They are slightly profitable but the way the market is acting here to the upside is a cause for concern to me. We are overbought both short and medium term though. Advance/declines today were 3 to 1 positive and the volume was good. So with just 2 days to go the risk is pretty high. Gold went crazy today. After being down $25, once the Fed announcement came out, we were up $25. The XAU reversed and was up 10 1/2 points. ABX and GG were up 3 and NEM up 3 1/2 all after being down early. Volume was extremely heavy. It is a solid reversal for certain. I did have a chance to get some calls right after the announcement but didn't. I just wasn't fast enough and was concentrating on the OEX. Perhaps I should have been looking at gold instead but who would have known what was about to happen? Mentally I'm doing OK, a bit tired from not enough sleep. So I really should be out of this OEX trade on any weakness tomorrow. That is the plan. I suppose we could just continue higher but the market is really due for a rest. Throw in expiration week and there should be a bit more volatility in the next couple of days. But who knows? The markets go where they want.

Squeeze those shorts as the Dow rose 178 points on average volume. Advance/declines were over 2 to 1 positive. Yesterdays one day reversal to the downside was not confirmed. It looks like we will run it up early in the expiration week. I am going to get some OEX puts tomorrow if the opportunity presents itself. Still short term overbought and I think strength tomorrow should be sold for a quick profit. We do have the Fed meeting and announcement which kind of throws a wrench into things as far as timing goes. But I do think that buying OEX puts at some point tomorrow will work. Gold lost $5 today and the XAU fell 1 3/4. ABX, GG and NEM all had fractional losses on light volume. I do still want to get some gold share calls for April but am concentrating on the OEX scenario for now. The weekly gold share charts still imply higher prices near term. So we'll see. Mentally I'm feeling fine, slept well. So the OEX will be the next trade. The market has changed here, make no mistake about that. The decline is over for now. However expiration week can be volatile and I believe there will be some decent downside action before Fridays close. The entry will be tough and I hope I'm up to the challenge. We'll see what happens.

So we had a one day reversal, as the Dow was up over 160 points and ended the day down 7. Volume was average. Advance/declines were positive. We were short term overbought and we're working that off. I did want to get some OEX puts but from higher levels. I don't think I'll do it now but you never know. The candlestick charts on the stock indices look like a short term top has been put in. So we'll see. I wouldn't be surprised if we squeeze the shorts again this week too. Gold lost 8 bucks and the XAU dropped 1 1/4. The gold shares themselves were mixed. ABX was flat, GG of 1/3 and NEM down a point. Volume was light. I'm still thinking April calls there. I'll need to see more of a pullback though. GE closed flat after being much higher. Nothing doing there. Mentally I'm doing OK. Got a late start today but I don't have anything imminent in the works. Checked the charts over the weekend and getting some OEX puts looks to be the only trade this week. However, I was looking for strength into Wednesday and we have already turned around. So it looks like a waiting game for now. We'll see what tomorrow brings.

The Dow is climbing higher as we gained another 54 points today on average volume. Advance/declines were positive. Perhaps the sellers are finally through for the time being. Option expiration week coming up. No OEX trades in the works for now. We'll see about next week but I don't foresee anything at the moment. Gold was up another $6 today and the XAU gained 1 3/4. ABX was up 3/4, while GG and NEM rose a buck. The volume was light though. I still like the weekly gold share charts and perhaps will get some April calls on weakness next week. I'll have to think it over. GE was flat today. Mentally I'm feeling fine, slept well. It wasn't a good week as I exited another losing trade. I'll need to come up with a new game plan over the weekend. A check of the charts and I'll go from there. I may just stay on the sidelines as well. For now it's time for a break.

Continuing higher as the Dow gained 240 points on average volume. Advance/declines were 8 to 1 positive. Cover those shorts. The McClellan oscillator will move into positive territory after todays action. It should turn around the summation index. I'm sticking with the prognosis that the decline is over for now. So I guess it is time to trade from the long side if the opportunity presents itself. Getting short term overbought here though and I haven't mentioned that condition for quite some time. Gold was up around $15 and the XAU rose 4 1/2. Did I bail out of the GG calls at the wrong time? Well, yes but that doesn't make them profitable now. They are too far out of the money with very little time to go. ABX was up 1 1/2, GG up 60 cents and NEM added about a buck. Volume was nothing special. I must say that the weekly charts for the gold shares still look very positive here. It is a dilemma here for me. Perhaps I will try the April calls in the gold shares after all. I'll mull it over this weekend. March is historically the worst month for gold. So it's risky. GE had another great day, up over a buck on very heavy volume. Certainly missed out on that trade. Mentally I'm a bit tired again, restless sleep. I'm trying not to do anything stupid here but you never know. 6 days left in the March cycle. I don't think the market will just run up into the expiration but who knows? We were very oversold. We'll see how the week ends up.

Up and down today but basically nowhere as the Dow gained 4 points on average volume. Advance/declines were solidly positive. No follow through from yesterdays huge move. So we'll see what happens tomorrow. Gold gained back about $15 and the XAU was up 6 points. ABX, GG and NEM were all up by around 1 1/2 on average volume. Not enough to save my old GG calls. I'll be looking to get some April gold share calls if things pan out in the next couple of weeks. That's about the only idea for now. GE lost 1/3 on heavy volume. It has moved pretty good percentage wise lately. No trades there. Mentally I'm feeling a bit tired, did not sleep well. Just trying to stay on the sidelines here as the trading thus far this year has been atrocious. Yes, I'll regroup and move forward but the inability to do what needs to be done when it needs to be done is troublesome. I'm in a slump, recognize that and will go from here. There's no need to dwell on it. The fact that I have no good ideas here doesn't help things. Confidence is important and I don't have any at the moment. I'll try and tread lightly.

An explosion to the upside as the Dow gained 379 points on average volume. Advance/declines were 8 to 1 positive. This is what everyone has been waiting months for. It has been way overdue. It's not the beginning of a new bull market but the lows set here should hold for a while. I will say that it is the end of the decline for now. The S&P 500 has had what looks like a classic 1 2 3 4 5 pattern or ABCDE decline. It will take some time for a real bottom to form. Months if not over a year or so. But it's all just a guess. The market will go where it wants. Gold lost over $20 again today and the XAU lost 5 1/2. ABX and GG were off around 1 3/4, while NEM fell 2 3/4. Volume was heavy and picked up to the downside. My GG calls died and I sold them for an 85% loss. I blew it on this trade since they were profitable at one point. I was sick, didn't get up early when I needed to and suffered the consequences. I knew they were dead yesterday and yet again failed to just take the loss. It's the sidelines for me now as punishment. Not to mention that I have had a horrendous start to the trading year and readjustments must be made. Mentally I'm doing as well as can be expected. GE had a banner day, up almost 1 1/2 on heavy volume. Perhaps it was foretelling todays action by holding up rather well the past few days. Again, hindsight. It does nothing for me now. So it's back to the drawing board and I have no real ideas going forward. 8 days remaining in the March option cycle. Hopefully I'll stay flat.

The malaise continues as the Dow lost 80 points on average volume. Advance/declines were over 2 to 1 negative. Not a lot of news this week and there is really no reason to get excited about stocks here. We are oversold and the McClellan oscillator is where it should bounce. But none of this means much lately. No trades in the OEX for me here. Gold got whacked, down $25. The XAU lost 4 points. ABX, GG and NEM all lost around a buck or more. The volume was light though. That's the only thing that kept me from taking the loss on the GG calls trade. Maybe tomorrow. I should have been out early Friday morning. Hindsight is always correct. But it doesn't do much for me now. We'll see how it plays out because the weekly chart is what kept me in the trade. GE managed a gain on heavy volume and that could be a signal that we are going to turn things around here with regards to the overall market. We'll see. Mentally I'm feeling better, not sick anymore. I'm running out of time on the GG calls trade and at this point it looks like another loser for 2009. We'll see what tomorrow brings.

The Dow ended the day up 32 points on average volume today. We were up over 100, down over 100 and came back in the last half hour. Advance/declines were negative. I don't exactly know what to make of it. The employment report was viewed as a good thing early. Even though the rate was higher and hundreds of thousands of jobs were lost. GE is showing strength here and that may be a good thing for the overall market going forward. We'll see. Gold was up over $10 today but the XAU only managed a gain of 1/3. That's troublesome for the long side. We also were higher early and closed lower. ABX and GG had fractional losses, while NEM dropped 1 1/2. Volume was better to the downside as well. My GG calls are at break even. The only thing that kept me in this trade today was the fact that the weekly chart looks very constructive for a positive move next week. 2 weeks to go on these calls and they need to be sold on a rally next week. I probably should have bailed out early this morning but didn't. I will be out at some point next week and looking to April. Mentally I'm feeling better, the cold is dissipating. I'll have to check the weekly calendar and see what reports are due out next week. It is the weekend and time for a break. I'll try and rest up and get ready for the new trading week. A check of the charts and go from there.

Continuing to fall apart as the Dow lost 281 points on average volume. Advance/declines were over 8 to 1 negative. And we haven't even seen the employment report yet. I think that tomorrow could be a washout event. Something whereby we get sold out so much that all the sellers are gone. A climatic sell-off that signals the end of this downturn for now. I'm guessing here. I don't know what will happen tomorrow. Bu this won't go on forever and the shorts will start to cover in a big way at some point. Gold had a good day, up over $20. The XAU rose 5 3/4 points. ABX up a buck, NEM up 1 1/2 and GG up almost 2. The volume was only average though, that was the only drawback. My GG calls are in the black. Should I have just bailed out today? It is always hard to make the adjustments as new information comes in. It is an ever changing game and that's why it is so difficult. The weekly gold share charts are now looking constructive and point to higher prices near term. So I might be holding on here longer than previously thought. Or not. We'll have to see what happens tomorrow. Mentally I'm starting to feel a little better but not all the way back from getting over this cold. The game is tough and not feeling 100% doesn't help things. Tomorrow should be interesting to say the least.

A bounce today as the Dow gained 150 points on average volume. Advance/declines were 3 to 1 positive. Does it mean anything? Who knows? We're still oversold but I don't see a lot of buying before the employment report is released. I could be wrong. GE lost another 40 cents on super heavy volume. Does somebody know something? They already cut their dividend. I really doubt GE is going out of business but stranger things have happened I guess. Gold continues lower, off $7. The XAU was flat but higher early on. ABX and GG had fractional losses and NEM had a fractional gain. Volume was average. My ill timed GG calls are worth half as much. Probably should get out soon and that is the plan. I do have a thought of the dollar falling on the employment report and gold rallying. I'm probably going to wait for that. Mentally I'm tired and still not feeling well. It might be best to be on the sidelines here but I'm not. You really need to be up for the job. It's never easy. Where we go from here is anybodies guess. I'd be surprised if the jobs report had any good news. How the market reacts to that will be the key going forward short term.

The market is trying to stabilize as the Dow lost 37 points on good volume. Advance/declines were about 2 to 1 negative. Short and medium term oversold here so a bounce is expected. But can it last? The employment report is due on Friday. That will be interesting. So we'll see what happens. Gold lost $25 today but the XAU rose over 3 points. ABX and NEM were up fractionally, while GG gained over a buck. The volume was decent. My GG calls are still losers. I'll be looking to get out this week and then position for the April cycle if all goes well. No telling what will happen at this point. March is a historically weak month for gold and that must be taken into consideration. However these are not your normal times. GE continues lower on absurdly heavy volume. GE is now under $7 a share. Mentally I'm a bit slow, still have a slight cold. I'm thinking there will be a wild end to the week here. The employment report can't possibly have any good news. Until then it's wait and see I guess. I'll keep an eye on the GG calls and go from there.

So fall apart it is as the Dow lost 300 points to start the week. Advance/declines were over 10 to 1 negative. Volume was average. There are no buyers. We'll find a bottom somewhere. GE lost another buck on heavy volume. Will GE go out of business? I sincerely doubt it. Summation index lower. So down we go but I think that down the road anybody buying now will be glad they did. Gold lost a couple bucks and dropped hard in the aftermarket. There is no flight to safety. It is a liquidation event again. I left in an overnight order for some gold calls, thinking the gold shares would attract assets when we fell. Of course that didn't happen. I got filled and GG was off 2 bucks on heavy volume. The calls I bought got cut in half. The XAU dropped 9 points. ABX lost over 2 and NEM lost over 3. Heavy volume as well since money must be raised. I should be out of the calls this week, most likely with another loss. I should have just sat on the sidelines. I wasn't patient. I really do want some gold share calls for April. Chalk it up to another mistake in a mistake prone year so far. Mentally I'm feeling tired, did not sleep well. I'm also not feeling 100% with a slight touch of a cold. But there are no excuses, my trading has been terrible this year. So what to do from here? Sit tight I suppose. Exit the GG trade and wait. There will be opportunity.

Drifting lower to close out the month as the Dow lost 119 points on good volume. Advance/declines were negative. Opened lower, came all the way back and then back down again at the close. Summation index headed lower. GE lost 1/2 and my calls were stopped out for a 55% loss. I kind of figured on that a couple of days ago. GE announced a dividend cut and rallied but then sold off again. So another losing trade for 2009 and that has been the story here so far. Gold was flat on the day and the XAU was off 3/4. The gold shares were mixed with ABX off a buck, GG flat and NEM up a buck. Volume was heavy in the gold shares. I suppose my next trade will be here. The gold issues are short term oversold. I'll have to check things over the weekend. Mentally I'm feeling tired, did not get enough sleep. The stock market cannot gain any traction. I still think that we could really see some more downside unless it holds up here. But I don't know where the buying will come from. So on it goes. It is quite a bear market. I'll have to check the charts over the weekend and see what to do from there. For now it's time for a break. Rest up a bit and start fresh on Monday.

The Dow lost 88 points today on average volume. Advance/declines were negative. We were much higher and closed on the lows of the day. That usually doesn't bode well. End of the month tomorrow. More selling? We'll see. We are overbought on some of my indicators and if we don't hold up in here it will be ugly. GE was much higher and reversed. It ended up a nickel on good volume. My calls are under water and if today is any indication of what's ahead I'll be stopped out tomorrow. Gold lost over $20 but came back a bit in the aftermarket. However the XAU was up almost 2 points. Perhaps gold will stop heading lower. ABX and NEM were up fractionally, while GG gained over a buck. ABX has been a laggard as of late. Perhaps I'll try the GG calls for the next gold share trade. We'll see. I'm trying to stay patient there. Not much else on the radar screen for now. I guess we'll see if the market can hold up here. I'm thinking about getting short before the employment report next Friday if we hold up that long. Mentally I'm feeling good, slept well. I'm really starting to think we are about ready to collapse here but I hope that I'm wrong. Summation index heading lower. Rallies just do not follow through. We are at the last area of support. It sounds ominous. Perhaps things will turn around but I can't seem to find any catalyst for the upside. We'll see how the month ends.

The Dow lost 80 points today on average volume. Advance/declines were negative. Summation index still pointing down. Oversold on a medium term basis. My guess here is that we either hold up and move higher or crash. End of the month on Friday. GE lost a dime on heavy volume. My calls were a tick away from being stopped out. I adjusted the price down 5 ticks which probably wasn't the smartest thing in the world to do. We'll see what happens. Gold lost 3 bucks today and is selling off in the aftermarket. The XAU fell 1 1/4. ABX, GG and NEM were all off fractionally on heavy volume. I'm going to try and wait it out here for the gold shares and perhaps go out to April on the calls. Short term oversold on the gold shares here. However I'm inclined to let a base build, if and when that happens. No OEX trades as the premiums are still high with the new option cycle. Mentally I'm feeling tired, did not sleep well. Interesting times in the market at the moment. It's possible we could just grind lower here as well. The GE trade was supposed to be a bounce trade and we didn't get much of a bounce. That could be a problem. However the GE chart looks like this could be the bottom so we'll have to see how it plays out.

Finally got the expected bounce as the Dow rose 236 points on average volume. Advance/declines were about 5 to 1 positive. The beginning of something that will last? Who knows? It could all change tomorrow. GE only managed a 1/4 point gain with the Dow up over 200. Very disappointing. I'm going to get stopped out on this trade for another loss. That's how it feels at this point. Gold got clobbered, down $25 as the flight to safety trade gets reined in. The XAU lost 9 points. ABX off over 3, with GG and NEM down more than 2. All on heavy volume. Patience will be required here to get back on the long side. It's too late to short them. Mentally I'm feeling frustrated with the GE trade but what can you do? You give it a shot and keep on going. I have an appointment this afternoon, so the post is short. More tomorrow.

And down we continue to go. The Dow lost 250 points on average volume. Advance/declines were over 5 to 1 negative. So when will it end? Are we going to zero? Of course not. However we are in the fall apart zone it seems. Oversold and staying there. Both short and medium term. A bounce is overdue. But it hasn't happened. It will, but when? It also seems as though it is a sell anything point as well. GE lost another 50 cents on extremely heavy volume. GE is at 8 dollars and change. They will not be going out of business. Incredible. My GE calls are under water. The stop loss order is in and at this rate will be hit tomorrow. So on it goes. Gold lost $7 and the XAU dropped 4 1/4. ABX, GG and NEM all lost about 1 1/4 on average volume. I do think the gold shares will work again at some point but I am going to wait until they are oversold and we get a pullback in gold itself. So it's waiting game there for now. Mentally I'm feeling good, slept well. So where do we go from here? I wish I knew. It is possible that we could crash here and that would be a washout for a while. However I'm a believer in some type of bounce. Short covering or bargain hunting or whatever. I placed the GE trade in that scenario and I'm sticking to it. Tomorrow should be interesting to say the least. Will the slow melt downward continue?

Down once again into the expiration as the Dow lost 100 points on heavy volume. Advance/declines were over 3 to 1 negative. We are very oversold both short and medium term. I expect a decent bounce on Monday or Tuesday. Hence I did buy some GE calls today. GE was down about 3/4 on extremely heavy volume. My thinking is this is a washout to the downside and we should move higher from here. Of course we could just collapse as well. But I don't think so. This is supposed to be a bounce trade so I should be out on Monday or Tuesday. Yes, the last OEX bounce trade failed miserably but this is a new trade. So we'll see. Gold was up $25 today and closed above $1000 for the first time in a while. I still like gold but am looking for a pullback. The gold shares just did not follow gold as well here as the last trip to $1000. The XAU was up 4 3/4. ABX only up 1/3, GG up a buck and NEM led the way, up 3. Volume was good. So I'll try and be patient here and perhaps even wait for the April cycle. But that's a guess. When it gets oversold that will be the time. Mentally I'm feeling a bit tired after a long day. But that's the way it goes. A lot of questions to be answered next week. We are trying to hang in there at these levels. I think we will for now. The McClellan oscillator is probably in -300 territory, so a bounce is certainly in order. But who knows. You try your best and just keep on going. It is the weekend. I'll take a break and check the charts. A rest is in order and then back at it on Monday.

Grinding lower as the Dow lost 90 points on average volume. Advance/declines were 2 to 1 negative. We are about ready to take out the 2002 lows for the S&P 500. Oversold and staying there. Summation index clearly pointing down. I'm thinking of getting some GE calls for a short term trade. Yes, I know that I said that I'd never try GE again. However there is a bounce coming Monday or Tuesday and the OEX options are too pricey. GE is almost at $10. Incredible. I'll mull it over tonight but I think I might give it a try. Gold lost a couple bucks but the XAU dropped over 6 points. GG and NEM had better than expected earnings so it was a sell on the news affair. ABX and NEM both off around 2 and GG down 1 1/2. Volume was decent as well. Is it time for the gold shares to take a rest? We'll see. That could coincide with a little rally in the market. But it's all just a guess as we wind out way through an epic bear market in stocks. I think gold needs a rest for now but you never know. Mentally I'm feeling fine, slept well again. I really think that you can buy weakness for a short term bounce in the next couple of days. The McClellan oscillator is getting into deep oversold territory. I'm not saying it's the beginning of anything sustainable but it could be tradeable. Whether or not I'm up for the challenge is the main question. So we'll see what the expiration brins tomorrow.

We hung around all day as the Dow gained 3 points. Volume was average, while the advance/declines were negative. Seems like we are just waiting to go lower and we are about ready to break the lows of last autumn. No doubt oversold here but it doesn't seem to make a difference. It is a brutal bear market. I'm a fool for buying calls last Friday at the close. Gold continued higher, up over $10 on the futures and continuing higher in the aftermarket. The XAU was up 2 1/4. ABX up over a buck, GG up 3 /4 and NEM up fractionally. The gold shares sold off early and then came back. Earnings for GG and NEM tomorrow. I thought about getting the ABX calls again but did not. I do think there is a chance that ABX will take off to the upside on the earnings on Friday. However with the recent losses that I have taken it is not in the cards for me now. I contemplated leaving in an overnight order yesterday but did not. Gold simply continues higher and there is nothing to stop it at this point. Even with dollar strength. Money is looking to hide and it's hiding in gold. My ideas seem to be OK but I'm not making any money on them. And so it goes. Mentally I'm feeling good, slept well. I've racked up some pretty hefty losses early this year which is the exact opposite of the beginning of last year. Yes, I can climb my way back up but it will take a lot of work and discipline. 2 days before expiration and I shouldn't be making any more trades here this week. A bounce for the market here with expiration? Doesn't seem like it yet. Maybe Friday. Maybe not.

It was down from the open and we closed on the low of the day. I guess it doesn't get any bearish than that. The Dow lost 298 points on average volume. Advance/declines were 9 to 1 negative. Summation index solidly down. My OEX calls got killed. They were dead from the start. It was a 75% loss. It was risky, I was wrong and I paid the price. That was an impulse trade and a dumb one at that. Nobodies fault but mine and it continues the terrible decisions that have so far characterized my trading year. Gold was the star of the day, up over $25. However the XAU could only manage a gain of 85 cents. I got killed in the ABX calls as well for a 70% loss. ABX down 3/4, GG was flat and NEM had a gain of over a buck. Heavy volume in the gold shares and they all opened higher but closed lower. Especially ABX. I had the right direction for gold but was trading in the wrong vehicle. GLD has done fine during this gold rally but the gold shares just aren't moving higher. Earnings on Thursday and Friday and somehow I am thinking of trying ABX again for the earnings release on Friday. I may do it. I am quite sure the gold companies earnings will be stellar but that doesn't mean they will trade higher. Perhaps at this point the prudent thing to do would be to sit back and let things play out as they may. Mentally I am tired, did not sleep much. Very disappointed in losing but it is part of the game. I need to put it aside and keep on going. Easier said than done. 3 days before expiration and do I really want to do another trade after these losses? Perhaps. It's a rough start to the new year, that's for sure. We'll see what happens tomorrow.

Another downer as the Dow lost 82 points on light volume. Advance/declines were negative. We are short term oversold. I bought some OEX calls on the close, expecting a bounce on Tuesday. I could be wrong. This will be an extremely short term trade as I expect to be out on Tuesday. No waiting around on this one. It either works or it doesn't. 4 days until expiration so there is no time for it to work out. Gold lost $7 today and the XAU dropped 2 points. ABX was off a buck, GG down fractionally and NEM fell 3/4. Volume was lighter on the decline. My ABX calls have been cut in half. Can they come back in 4 days? I doubt it. Earnings on Friday and really, should I wait that long? Maybe out on Tuesday or perhaps I'll wait. Decisions to be made over the weekend. Mentally I'm tired, did not sleep well. Taking a chance on the OEX but I'm thinking this is something that could actually work if I don't hang on too long. But you never know. Hard to make a case for owning stocks here but with expiration week there should be some more volatility. Right now it's time for a break from this game and try to come back fresh on Tuesday morning.

It was a one day reversal to the upside in most indices except the Dow. We lost 6 points on average volume. Advance/declines were negative. We were down over 200 and then made a comeback in the last hour on some mortgage news. Probably short covering as there are no compelling reasons to own stocks at the moment. But you have to respect the market action. We'll see if there is any follow through tomorrow. Gold was up $5 and the XAU inched ahead by 3/4. ABX, GG and NEM were all up fractionally on lighter volume than yesterday. My ABX calls are slightly under water as gold hovers around the $950 mark. Running out of time for the options with only 5 days left. Might just have to dump them at a loss and go from there. The earnings for ABX don't come out until next Friday which is the last day in this option cycle. I'll have to mull things over tonight. Mentally I'm OK. Volatility has returned to the market. It keeps the option premiums up but it also makes it tougher to play the game. We'll have to see how things play out ahead of the long weekend We should see some follow through to the upside tomorrow. If not then who knows?

A day of rest as the Dow gained 50 points on average volume. Advance/declines were positive. I'm calling it a day of rest because that's what I believe is happening here. I still think we are going lower. 2 days before a long weekend. No OEX trades for me here. Gold continued higher, up $30. The XAU rose 8 1/2 points. Gold is breaking out and I bought some ABX calls. My overnight order wasn't filled so I adjusted it. ABX up 1 1/2, GG up 1 3/4 and NEM up 3. Volume was heavy. Price and volume are things that usually work. So we'll see. Yes I would have liked a better price but what can you do? The next question will be when and where to exit. Earnings are out next week as well. Mentally I'm a bit tired, could have slept better. So the next trade is in session. We will have to see where the market leads us. Money is definitely flowing into gold. We'll see if it keeps up. I do think the stock market will continue lower here. That should support the gold market. Not a lot of time for these options so they will have to be watched closely. On to tomorrow.

Well the market made up its mind to the downside today. The Dow lost 381 points on heavy volume. Advance/declines were 6 to 1 negative. I was thinking we would wait until the end of the week for the decline to begin but I was wrong. How low will we go? I don't know. I can't see any sustained buying in this type of environment. The credit/mortgage/banking etc. crisis continues. The government bailouts are to simply keep the banks open but nobody quite gets this. The economy won't be turning around anytime soon. Hence down we go. Gold had a good day, up over $20. The XAU opened higher and closed lower though, off 2 1/2. GG was flat on the day but ABX and NEM were down around a buck. Volume was average to heavy in GG. I'm leaving in an overnight order for ABX calls. It's risky to be sure but I think gold is going to break out above $925 here. Hopefully the gold shares will follow. Normally when gold is higher and the gold shares move lower it implies lower gold prices. The dollar was stronger here as well today. However, these are not normal times. I'm thinking that 120 will hold on the XAU and we will rally off of that. So we'll see. Mentally I'm doing OK, could have slept better. So I'm taking a chance here and it may or may not work. We could just go into a free fall here with regards to all assets, including gold. You can't rule anything out in this type of market. So we'll see what happens. I think it's too late for the OEX puts but you never know. Interesting game.

An indecisive Monday as the Dow lost about 10 points on light volume. Advance/declines were positive. We're waiting for the presidents news conference tonight and the next bank bail out plan tomorrow. What happens is anybodies guess. My trade idea for now is that if we rally or stay about where we are, I'll be buying some OEX puts on Wednesday or Thursday. We are short term overbought but could stay there for a bit. I do think that we'll see weakness towards the end of the week. I could be wrong. Gold lost over $20 today and the XAU dropped 3 1/2. ABX and NEM were off over a buck and GG down around 1. Volume was average. The dollar lost ground as well. I'm not as sure about the gold shares here from the long side. Overbought longer term and gold vs. the dollar hasn't reacted the way it used to. Only 8 days left in the February option cycle as well. But you never know, I could change my mind tomorrow. Mentally I'm feeling OK, slept well. I'm thinking that trading the OEX could be the way to go here as opposed to the gold shares. I'll have to mull it over tonight. Most likely though I will be putting on some type of trade this week. Stay tuned.

Unemployment up but so is the market as the Dow gains 217 points on good volume. Advance/declines were 4 to 1 positive. The market has moved higher on better volume and that is a good sign for the bulls. Shrugging off bad news is another sign of a market that wants to go higher. The summation index should be back to the upside after todays action. Getting short term overbought but not there yet on a medium term basis. Maybe this is the start of a longer term up move. Or not. It is one interesting game. Gold was little changed but the XAU followed the overall market higher, up almost 3 points. ABX, GG and NEM all had fractional gains on OK volume. We are overbought on the gold shares but there is nothing holding them back either. The dollar was weaker today, however gold itself didn't do much. There have been a lot crosscurrents lately between the dollar and gold. I don't know right now what that actually means but it means something. So we will have to see how that plays out going forward. Mentally I'm feeling tired, did not sleep well. 9 days left for the February cycle with a holiday a week from Monday. So it gets a little risky going forward. I don't have any solid trades in my mind right now. I will check things out over the weekend and take it from there. It is looking bullish for the Dow now though. The transports have started a nice rise as well. For now, time for a break and then back at it on Monday.

Up ahead of the employment report as the Dow gained 106 points on good volume. Advance/declines were positive. Short covering? Does the market know that the number tomorrow won't be so bad? Will the federal stimulus package get passed tonight? No reason really but you have to respect what the market does vs. what you think it should do. We'll see what happens tomorrow. Gold was up over $12 and the XAU climbed 3 1/3. ABX up 1 1/2, GG up 3/4 and NEM up about a buck. The volume was OK. Overbought here and about to break out to the upside possibly. I'm going to wait to see what happens on the open tomorrow. I'd still like to take a shot with the gold share calls but will need to see some weakness first. There's a chance that they just open higher and keep on going as well. So we'll see. It's a tough call at this point. Mentally I'm doing OK. Trying not to do anything stupid here but I would like to put a trade on. I'm thinking that we will be down on the open tomorrow and we'll see how bad it gets. I can't imagine that the employment number will have any positive news. But there is a chance that the stimulus package gets done tonight and the market may simply focus on that. You know, it's never easy. So we'll see what happens.

The Dow lost 121 points on average volume. Advance/declines were negative. It wasn't as bad as it looked as the overall market was stronger than the Dow. So we are really at a point of indecision going into Friday. I think tomorrow won't see much one way or the other. Friday will be the key. I'm leaning towards the downside for the direction but have no trades in mind for now. We're more oversold on a short term basis. So we'll see. Gold was up $10 and the XAU rose 3 1/2. ABX, GG and NEM were all up over a buck on OK volume. I canceled the open order for the GG calls and am thinking of switching to ABX. We aren't really oversold here though. I think if gold does break out to the top it will take off in the short term. We are at resistance for the gold shares and have moved sideways. I think the prudent thing to do here would be to wait until the employment report comes out but you never know. The dollar was stronger today and gold went up anyway. That cannot last forever. Mentally I'm doing good, slept well. I'd like to put a trade on here. I'm trying to be patient. I'll look over things tonight and go from there.

Moving higher today as the Dow gained 141 points on average volume. Advance/declines were positive. The Dow rallied in the face of bad news and that's a positive. But it's hard to believe any of the moves lately. The recent lows at 8000 have held though for now. I still need to see what happens on Friday with the employment report. Not overbought or oversold now. I'm on the sidelines for the OEX. Gold lost $14 on the futures today. The XAU was flat as well as ABX, GG and NEM. Volume was light. The dollar was lower again today and gold did not rally. So there are some crosscurrents going on with that relationship. I still have an open order for some GG calls but I will have to rethink it before Friday. I still like the idea but the gold market isn't reacting well to what would normally be positive news. Mentally I'm doing OK, could have slept a bit more. I also need to get a new computer which is affecting my focus on the markets but I can't use that as an excuse really. So the game goes on.

A lackluster Monday as the Dow lost 64 points on light to average volume. Advance/declines were negative. Beginning of the month and it should have some supportive money flows. The overall market was much stronger than the Dow also. Summation index is pointing down though. Another day or 2 of decline and we will be short term oversold. Employment report due on Friday. Gold had a bad day off $20. The XAU fell over 4 points. ABA, GG and NEM all were down but the volume was light. I have an overnight order in for some GG calls. I'd like to own some gold share calls before the employment number on Friday. That's the idea at the moment. The dollar was weaker today and it didn't help gold but gold was overbought. So we'll see where we go. Mentally I'm doing OK, could have slept better. Option premiums are getting better as we have less than 3 weeks to go. I'm sure that I will try something. If there is a decent signal in the OEX, I may give that a shot. That's it for today.

Continuing to the downside as the Dow lost 148 points on average volume. Advance/declines were 3 to 1 negative. The GDP number came in better than expected but was still weak. The summation index should be back to pointing down. It seems like it is that type of market. One which is tough to trade and there is no sustainable trend one way or the other. You have to be quick to take what you can get. Gold had another good day, up over $20. The XAU however was off 1 1/2. Go figure. ABX lost a buck while GG and NEM were little changed. Volume was good again. When the metal goes up and the stocks don't follow, you have to take notice. So perhaps a pullback in gold is due. The dollar continues higher as well. However, if I feel an opportunity is at hand for the gold shares, I'll take it. Mentally I'm a bit tired. Did not sleep as well as I could have. January is over and it was a down month again. The tough times for the stock market continues. I'll take a break this weekend and get back at it on Monday.

Back to the downside today as the Dow lost 226 points on average volume. Advance/declines were 5 to 1 negative. So we negated yesterdays positive action. The GDP report is tomorrow and I think it won't be good. How the market reacts will be the key. Perhaps we are simply in a range bound market. End of the month tomorrow as well. Gold was up over $15 and the XAU gained 5 points. ABX up over 2, GG up 1 1/2 and NEM had a gain as well. Volume was good and extremely heavy in NEM. The dollar was higher as well today and there seems to be a disconnect lately between the gold and the dollar. Gold seems to be a safe haven play as of late. I'm getting to the point that any weakness in gold should be bought but we are extended here. I'm still leaning towards the gold share calls though. I just need the guts to buy them. Mentally I'm doing OK. Trying to remain patient. Still a lot of time in the February cycle. Timing is everything sometimes. Trying to remain positive towards the trading here. Still need to focus more. Besides the gold shares I don't have any solid trading ideas going forward. I do see money continue to flow into gold so the odds favor that at the moment. I'm doing the best I can but for now that doesn't seem to be cutting it.

The Dow rallied today, up 200 points on good volume. Advance/declines were over 5 to 1 positive. We got the Fed out of the way. Next up is GDP tomorrow. I can't see that as being a good number. We are overbought short term now. However with todays action the summation index is clearly heading higher. The end of the month is upon us as well. Still plenty of time in this option cycle so I have no OEX trades in mind at the moment. Gold lost over $10 today and the XAU shed about 2 points. ABX and GG were off fractionally and NEM dropped 3. Volume was pretty good and heavy in NEM. I am going to try and wait until next week to get some gold share calls. It depends on tomorrow really. I think the market will be selling off on the GDP report and perhaps the gold shares will go with it. But that's a guess and I'll be watching what develops. Mentally I'm a bit tired, did not sleep as well as I could have. I think the question now is does the rally have legs? Or are we stuck in a trading range? Time will tell. I don't have the answers. The game doesn't get any easier.

The Dow gained another 58 points today on average volume. Advance/declines were 2 to 1 positive again. The overall market is acting stronger than the Dow and that could be good for the bullish cause going forward. We are short term overbought. The summation index should be turning up after todays action though. We have the Fed to deal with tomorrow and GDP on Thursday. I have no OEX trades in mind at the moment. Gold lost $9 today and the XAU was off 2 and change. ABX and NEM lost over a buck and GG was little changed. Volume was lighter on the decline. I still like the gold shares for a February call play and am trying to time it better than the last trade. It won't be easy and there is a chance that the gold run is over for now. But that's a guess. We are overbought on the gold indices both short and longer term. However in a true bull move the indicators will remain overbought for quite some time. So we'll see. Mentally I'm doing OK, still trying to remain patient. Plenty of time in the February option cycle. My thinking at this point is to let this week pass as well but that could change. There's no rush to do anything right now. I'll keep an eye on things and take it from there.

The Dow gained 38 points today on average volume. Advance/declines were 2 to 1 positive. We were much higher earlier in the day, sold off and then came back. Exactly where do we go from here? That is the question. I have no answer at the moment. Summation index still heading down but that could change. End of the month coming up. We aren't overbought or oversold at the moment short term. Patience will be required. Gold was up $13 on the futures today but the XAU dropped 1 1/3. ABX, GG and NEM were all down and the volume was heavy. The dollar took a beating today but the gold shares did not respond. I still think they are a buy for the February option cycle. I'm keeping my eye on them. Mentally I'm feeling OK. No hurry to do anything at this point. I'll try and stay patient and take it from there. My focus is on the gold shares at the moment. So we'll see.

The Dow lost 45 points today on average volume. Advance/declines were about even. GE was down about 1 1/2 on extremely heavy volume and that kept the market down. The overall market though was higher. It still looks like we are trying to put in a bottom here. The summation index is still heading lower so we'll have to see what next week looks like. At this point I do think we will head higher but I could be wrong. Plenty of time in this option cycle, so waiting for a decent signal is my choice at the moment. Gold had a great day, up over $35. The XAU rose over 10 points. It looks like an upside breakout on some of the gold shares. ABX up 4, GG up 2 1/2, NEM up 3 1/2. All on heavy volume. Money continues to flow into gold. I have said that repeatedly and yet I don't own any of the calls. That is frustrating to be sure. However I still feel that there is plenty of time and money to be made there. I'll probably get long on the next round of profit taking. The dollar was higher but gold seems to have a life of its own at the moment. Mentally I'm doing OK. Trying to recover still from the early year losses that I've suffered. The battle is always within. I'm trying to regain the confidence required. It hasn't been easy. For now I'll try and relax over the weekend. Check the charts and get ready for the end of the month next week. It was a short but volatile week and we''ll see if that's the case going forward. Time for a break.

The Dow lost 105 points today but it was off around 275 at one point. Volume was good again. The advance/declines were over 2 to 1 negative. It now seems to me like the market is trying to put in a bottom here. No guarantees but that's what it looks like. The summation index is still heading down though so we'll see. It's been pretty volatile so far even though it's a short week. Gold was up $8 but the XAU dropped 1 1/2. ABX and GG were down on the day, while NEM rose. Volume continues to be good in the gold shares. Oil was flat and the dollar didn't do much either. I'm keeping an eye on the gold shares and believe at this point that my next trade will be there. Mentally I'm doing OK. I'm trying to remain patient with so much time left in the February option cycle. It isn't easy. However with a bad start to the trading year, scaling back isn't such a bad idea. GE earnings tomorrow and that stock has found support in the last couple of days on heavy volume. It should set the tone for tomorrow. On to Friday.

Finally got the bounce today as we were as oversold as it gets and have been for a few days. The Dow was up 279 points on good volume. Advance/declines were 3 to 1 positive. Of course it's too late for the calls I bought last week but that's the way it goes. So the next question is will it continue, will it hold? It might but time and the market will tell on that one. I certainly don't know. GE did have a one day reversal and its earnings are announced on Friday. If GE is a proxy for the market then things could get better near term. But that's just a guess and certainly not something to trade on. Gold lost $5 today but the XAU rose 3 3/4 points. ABX, GG and NEM all were higher on good volume. The dollar was weaker and oil showed strength. Yes, I'd like to get some calls here but it's too early in this option cycle in my opinion. But I could be wrong. Volume continues to be strong for the gold shares and you can't ignore that. So we'll see. Mentally I'm feeling a bit tired, did not sleep as much as desired. I'm really in a holding pattern for now, trading wise. Premiums are high for the February options, so I'm in no rush. A nice bounce today and we'll see if there is any follow through.

A new president but the same old story for the stock market as the Dow lost 332 points on good volume. Advance/declines were 8 to 1 negative. Oversold and staying there. Dangerous comes to mind. We should get some type of bounce but it hasn't happened. It will but it probably won't hold. I get the feeling that another large bank is about to fail. I'll have to stay on the sidelines for now. When the normal things aren't working, there is not much you can do. It seems to be a sell anything affair again. Gold was up $17 but the XAU dropped 1/3. The gold shares were much higher earlier in the day but sold off. ABX up 3/4, GG up 1/4 and NEM up 1 3/4. Volume was extremely heavy there. Money continues to find a home in gold. Looks like a one day reversal in the gold shares though. The dollar was higher on a flight to safety. Oil rose as well. Mentally I'm doing OK, slept well enough. It looks like it will be an interesting week. Summation index is pointing down. The banking system remains in collapse. Credit markets are in ruins. We will have to see where it all ends up. It looks like the lows of last autumn will be in question. Time will tell if they hold.

The Dow gained 68 points today on good volume. Advance/declines were positive. We were up strong in the first 10 minutes and never got back there. We are as oversold as it gets and I am at a loss for why there is no bounce. The conventional things aren't working again and that leads me to believe that more downside is in the works. My OEX calls got killed and it's basically a 100% loss. I gave it a shot and it didn't work. Not a good start to the new year at all. I'll regroup and keep going forward. It's all I can do. Gold was the star once again, up over $30. The XAU gained 5 points. ABX, NEM up 3/4 and GG up 1 1/4. Volume was strong as well. Money continues to flow to the gold shares. Perhaps I'll try the February calls there. An extra week in the February cycle so there's no hurry. Mentally I'm a bit tired. It's a risky game and I haven't even been close on my last 2 trades. Mistakes happen so there is no use to beat myself to death. I'm concerned that the market isn't acting well here. It seems like the liquidation we saw in the fall of last year has returned. I certainly don't have the answers. I'll have to check things over during the long 3 day weekend. Take a break and start fresh on Tuesday.

It was a crazy day today as volatility has returned to the markets. The Dow was higher by 12 points after being down more than 200. Advance/declines were about even. Volume increased. My OEX calls are losers. I do expect a good upside move tomorrow but it won't be enough to save them. Today would have been the day to purchase the calls but what can you do? We are still oversold. It will bounce tomorrow. Gold moved back and forth as well finishing the day off a touch but rallying in the aftermarket. ABX up 2, GG up 3/4 and NEM up 1 1/2. Volume was good. This could be a short term bottom in gold. I'm looking at the calls but may have missed it again. We'll see. Mentally I'm doing OK considering that I'm sitting on another losing trade. Slept well enough. Cutting the loss is the mode now. That should be done tomorrow morning. I'm thinking that we will be up around 200 points on the Dow tomorrow at some point. That should be my exit point. Expiration tomorrow and we'll go from there.

The Dow got clobbered today, off 248 points. Volume picked up today and the advance/declines were 8 to 1 negative. We are oversold and staying there. Volume increased on the downside move. The summation index is turning down. However, I did buy some OEX calls. Why? We will have a decent up move within the next 2 days. I believe that based on the technicals and my own work. Perhaps my timing could have been better but I think this will be a good trade. I could be wrong and often am. Gold lost about $10 and the XAU fell 5 1/2 points. ABX and GG both lost more than a buck. NEM was off 1/2. Volume was average. I'd like to get some of the gold shares but will hold off for now. Perhaps in the February cycle. GE lost another 80 cents on good volume. Nothing doing there. In fact I should probably not even list it in the blog anymore if I don't plan on trading it again. Mentally I'm tired as it has been a long trading day. I'll need a good nights rest tonight in order to have a clear mind for the task at hand tomorrow. This OEX trade is extremely time sensitive with only a couple of days to go. It won't be easy. But I do think we will bounce here and pretty good at that. So we'll see what happens.

Settling out on the day with the Dow down around 25 points on average volume. Advance/declines are just about even. 3 days until expiration and I think OEX calls are in the mix. Any weakness tomorrow can be used to take a position. We are short term oversold and will bounce between now and the close on Friday. That is my scenario going forward. I have tried to be patient here and I hope it pays off by taking a position tomorrow. We'll see. Gold was flat today but the XAU rose 2 3/4. ABX led the way up 1 3/4, while GG and NEM had fractional gains. Volume was good as demand for the gold shares remains. The dollar was stronger today as well but it didn't stop those issues from gaining ground. It's something to keep an eye on. GE dropped about a buck on heavy volume. Some type of analyst downgrade in the news. Is it a precursor for the overall market? Time will tell. Retail sales data out tomorrow and inflation news the following 2 days. Mentally I'm doing OK. I've put the GE loss behind me and am ready to move on to this OEX trade. If we see some weakness tomorrow I'm going to give it a shot. The best chance will be staying close to being in the money so that is what I will attempt to do. Stay tuned.

The Dow started the week down 125 points on average volume. Advance/declines were over 3 to 1 negative. We are short term oversold. We did get a slight bounce at the close. OEX calls are the preferred play here. I may give them a try but it won't be easy. 4 days left until January expiration. So it's a tough call and risky but the potential set-up is there. Gold lost $35 today and the XAU lost 7 1/2. ABX, GG and NEM all lost ground but the volume was lighter than lately. The daily charts are oversold but the weeklies are overbought. So it's a tricky call at the moment. I'll need to check some other things before making a commitment here. I do like the long side though. GE had a fractional loss on light volume. My calls are dead and I dumped them for a 90% loss. They are not coming back in 4 days. Not a lot of money involved here but not the way to start off the new year. The timing stunk, the management was horrible and those are things that need to be worked on. Also staying away from GE and concentrating on the OEX might help things going forward as well. Mentally I'm not in the best of places. Still having computer issues and that is unacceptable. I'm doing the best that I can with what I've got. So on we go and I'll have to see about that potential OEX call trade.

The Dow lost 143 today on light volume. Light volume seems to be the norm now. Advance/declines were 2 to 1 negative. Opened lower, hung around all day and closed near the low. It could of been worse I suppose. Employment report not good as expected. We are getting short term oversold. I do believe there will be a decent OEX call trade at some point next week. Gold was flat today and the XAU fell 2 and change. ABX, GG and NEM all down. Volume was decent. I do want some calls here but not yet. GE dropped a touch but the time premium has been sucked out of my calls. They're done. Will be dumping shortly for a huge % loss. I thought I wrote once here before to not play GE ever again. I need to remember that. Did get an up move in the averages as thought but GE did not go along for the ride. The timing of the trade was off and it went downhill from there. Tough game. Mentally I'm tired, did not sleep enough and had other commitments for most of the day. I now have a losing trade soon to be on the books and that affects things going forward. I don't want to miss the opportunity that will be presented next week. It's a challenge that I need to overcome. I'll do what I can. Right now I need some rest. Check the charts over the weekend and go from there.

The Dow lost 27 points on light volume. Advance/declines were positive. The overall market was stronger than the Dow. It was a wait and see type of day with the employment report coming tomorrow. I can't think that there will be any good news there but the market will do what it wants. It seems to want to go higher. Gold gained $12 and the XAU rose 6 points. ABX and NEM both got back over $2. GG was up more than a buck. Volume was good. I think the gold shares are a good play if we get oversold enough. I don't know if now is that point. So I'm staying on the sidelines there. However if we get a very weak number for employment tomorrow and the dollar tanks, then gold should do well. We'll see. GE didn't do much and was up a few cents. It sold off and came back on the day. My calls are dead and unless there is a good day for GE tomorrow, they need to be sold. Mentally I'm a bit tired, did not sleep well. At this point it's just a matter of waiting for tomorrow and going from there. Taking losses isn't the easiest thing in the world for me to do but sometimes it's just got to be done. Tomorrow could be one of those times.

The Dow got pounded today as we lost 245 points on average volume. Advance/declines were 4 to 1 negative. A pullback was expected but todays action begs the question that perhaps the rally is over. I'm not convinced until we see how the week ends. One day doesn't make a trend but it was pretty negative action. So we'll see. I think Friday could be key. Gold lost $25 and the dollar was weaker as well. Which could be a clue that this is one of those raise money affairs that we saw last autumn. The jury is still out. The XAU lost over 10 points. ABX and GG lost over 2 bucks and NEM shed over 4. NEM was the leader on the way up and now the reverse may be true. Volume was good. I do like getting long the gold shares down the road. GE fell 3/4 and that could be the end of that trade. The calls I own got killed today. Way under water but I will hold them until Friday. Volume light but that's the story of the new year so far. Mentally I'm doing OK, slept well enough. Just trying to sit tight here and let the market call the shots. Would like to see sideways action tomorrow followed by upside on Friday but that is wishful thinking. The GE trade is going into cut the loss mode. I'm not particularly concerned at this point. Maybe I should be. 7 days until January expiration.

The Dow gained 62 points today. Volume was nothing special. Advance/declines were 3 to 1 positive. We really need to take a rest here. The market is very overbought. I do expect weakness going forward the next couple of days, perhaps the employment report will be a trigger to the downside. That's my guess at the moment. Gold gained $8 today and the XAU rose 2 2/3. ABX had a fractional loss, while GG and NEM had fractional gains. Volume was pretty good in these issues. I'm holding off on the gold shares for now. GE was up 1/4 on light volume. My GE calls are going nowhere, still in the red. Running out of time for this trade. If we do get some market weakness near term that could do it for the GE calls. Stay tuned. Mentally I'm doing OK, could have slept better. The new year has begun and there really haven't been any surprises one way or the other just yet. Perhaps we are on hold for Friday. That's it for Tuesday.

The Dow lost 81 points today on better volume. Advance/declines were positive though. I do expect some more downside here to relieve the current overbought condition. Perhaps it will set up an OEX option trade. We'll see. Gold lost over $20 today as the dollar had a good day to the upside. The invasion of Gaza over the weekend did not help support the gold price so take note. The XAU dropped 4 1/2. ABX, GG and NEM all lost at least 1 1/2 on good volume. When the gold shares get oversold I'll be looking at the calls there again. GE fell 1/2 on better volume as well. The calls are in the red again as this has been a poorly timed trade. However I'm still a believer for now that we will see higher prices before the January expiration. I could be wrong. Mentally I'm doing OK, still on the back-up computer. I'm expecting near term weakness in the overall market and then we go higher from there. That's the guess for now. Employment report due out on Friday and that will be key going forward. The volume has been lighter than usual but after the carnage of last year that may be the norm for now. On to tomorrow.

A positive start to the New year as the Dow gained 258 points. Advance/declines were about 5 to 1. Volume was weak once again. The rally has had everything going for it except for volume and that could be a problem going forward. Maybe. Overbought and staying there which is usually a positive for the bullish cause. So we'll see what happens when everybody gets back to work next week. Gold lost $7 and the XAU was off a touch. ABX, GG and NEM all had fractional losses on light volume. The dollar was higher today. Not trades here for now but I'm keeping an eye on it. GE was up around 3/4 on light volume. It hasn't participated in the recent rally as I thought it would. Hopefully will get going to the upside with some momentum but hope isn't a good reason to trade. My calls are coming back and are almost at break even. I'm holding on for now. Mentally I'm doing OK. The back-up computer is holding up for now. It looks like trading the OEX calls instead of GE would have been the better position. Hindsight always chooses the right vehicle. I'll check the charts over the weekend and go from there.

Well the results are in and the final recap for the 2008 trading year shows a gain of 43%. Winning trades were just a touch over 50%. Although they sound like good numbers, the trading again this year was erratic. I could of and should have done much better. I had some big losers, which was inexcusable. I really need to work on the discipline and dedication to the business. I did do some things right but overall there is still a lot of work to do on my trading. Which means there is a lot of work to do on myself. There will be plenty of opportunities in 2009. I'll try my best to take advantage of them.

The Dow gained 108 points today on light volume. Advance/declines were 5 to 1 positive. End of the year but at least we continued higher, adding on to yesterdays gains. We are short term overbought and a pullback should be expected. Gold was up over $10 today as commodities had a good day all around. The XAU tacked on another 2 1/2 points. ABX, GG and NEM all had fractional gains. Volume wasn't that bad considering. I still like the gold shares. GE was up 40 cents on light volume. My calls are just hanging around. Looks like I may start the new year with a loss. Mentally I'm holding up as my computer has tanked and is out for repair. I will have to hook up the back up tomorrow when we are closed for the New Years holiday. It is a hassle for sure but I am trying not to let it bother me. Looking back on the trading year it was a profitable one but I was so busy today I haven't figured the details. I'll post the results within the next couple of days

I am back now on a different computer. The gold shares had fractional losses on light volume. I still think gold could do well going forward and continue to wait for a pullback there. GE was up just a touch on light volume. My calls are going nowhere and it looks like I may have to take the loss there. We'll see how the week ends up. Mentally I'm doing as well as can be expected. My computer is acting up and I will try and fix it tomorrow. The game is tough enough on its own. External problems such as with the computer or the data feed just add to the problems. No need to stress out but it is a hassle. It will be fixed eventually and trading goes on regardless. On to the year end tomorrow.

About 5 minutes to go and the Dow is up over 180 points. Advance/declines are 3 to 1 positive and the volume is light. Expected an upside pop and we are getting it. Doesn't mean much at this point. We'll have to see what follows. Gold was off $5 and the XAU is off about a point. I am having computer problems that make typing almost impossible. I will try and continue the blog on another computer later today.

Another downer to start the week as the Dow lost 31 points on light volume. We were down a buck fifty at one point. Advance/declines were negative. Just a couple of days left in this years trading. It looks like we're in a holding pattern until next year and then perhaps nothing happens then either. But we'll see. I do expect some type of pop to the upside within the next 3 days according to the technicals in my view. Gold was up about 5 bucks today and the XAU rose 3 1/2 points. ABX and GG tacked on a buck and NEM was up 2. Volume was good in the gold shares as international unrest helps its cause. The money is flowing into gold and that has been a theme for the past 2 months. GE lost 30 cents on light volume. My calls continue to lose ground but I'm holding them for now. Mentally I'm doing OK, slept well enough. Todays action suggests that perhaps we will move higher near term. However with light volume and another holiday week in store, nothing is for certain.

Another holiday light volume snooze fest as the Dow tacked on 47 points. Advance/declines were 2 to 1 positive. Not much to make of todays movement. Gold was up over $20 and the XAU gained 5 1/3. ABX, GG and NEM were all higher by around 1 1/2. Volume light here as well but the gold shares had more interest than anything else. Geo-political tension between India and Pakistan could be the reason. GE was down a bit on weak volume as well. My calls lost more ground as time decay takes hold. In retrospect, I should have let this week pass before making the trade. Mentally I'm just taking it easy. Perhaps things will get a bit more interesting next week.

The Dow gained 49 points in a holiday shortened session. Volume was extremely light and the advance/declines were positive. The trading here doesn't mean much. We are in holiday mode. Gold was up about $10. The XAU was flat. Volume weak. GE lost about 1/3 with the same weak volume. My calls are now a bit under water. Mentally I'm doing OK. Not much else to say here on Christmas Eve. Time to relax.

Down 100 points on the Dow today with holiday light volume. Advance/declines were negative. Short term oversold and expecting a bounce. Half day trading tomorrow and then we get the Friday after Christmas. I don't expect much to happen for the rest of this week. Gold lost $9 but the XAU gained over 3. ABX, GG and NEM all higher on light volume. The gold shares are still attracting interest. That's something to be watched. GE was up 1/3 on light volume. The calls I own are about where I got them. I don't expect much to happen here either for the rest of the week. Mentally I'm feeling good, slept well enough. Time for an extended break from the game. I'll keep an eye on things and run the numbers but the rest of the week is a wash in my opinion. The major players won't be back until next week or next year. So it's time for a break and then start up again on Monday.

It was a negative start to a holiday shortened week as the Dow lost 59 points on light volume. Advance/declines were over 2 to 1 negative. A last half hour comeback limited the damage as we were down over 200 at one point today. We are short term oversold but in a week like this you can't make much of anything in my opinion. I think we drift higher to sideways here but that is just a guess. Moves in either direction can get exaggerated in an environment such as this. Gold was up around $10 today but the XAU dropped 3 points. ABX, GG and NEM all down around a buck or so on light volume. If and when the gold shares get oversold again, I'd be a buyer of the calls. We'll have to wait and see what happens there. GE lost 1/3 on light volume. I had an overnight order in for some January calls and it got filled. I could have gotten a better price but I'll take it. The game plan is to hold the calls for an expected rally at the beginning of 2009. We'll see. Mentally I'm doing OK. I'm expecting this GE trade to carry over and be the first trade for next year. However adjustments will be made if necessary. I don't expect much this week as I said earlier. So we'll see what happens.

Expiration Friday as the Dow lost 25 points on good volume. Advance/declines were positive. Once again the breadth has held up here and portends higher prices ahead. So we'll see. The overall market was stronger than the Dow also. Summation index still rising. I am still looking for calls. Gold futures lost $20 but the XAU rose almost 2 points. ABX and GG had fractional gains while NEM rose almost a buck. The dollar was much stronger today as volatility has returned to the dollar index. I still like the gold share calls for January here at some point. GE was up 40 cents on pretty good volume. There was no downside follow through for GE and that's a plus. I did put an order in for January calls but it wasn't filled. Perhaps on Monday I'll try again. However there is always a possibility that we move sideways. Mentally I'm doing OK. It's holiday time for the markets and it's been quite a year. My thinking is that things will slow down for the next couple of weeks. I still want to get positioned for the beginning of next year. That is the dilemma. So I'll see how it goes. For now it's the weekend. Check of the charts of course and attempt to come up with a game plan for next week. I really need to work on the focus and concentration aspects of what I'm doing. If I can manage that then I think everything else will fall into place. Time for a break.

The market fell down today, off 219 points on average volume. Advance/declines were negative. However the breadth of the market hasn't deteriorated as it did in the past couple of months. I remain confident of higher prices going forward. I don't think this is the start of a huge decline but I've been wrong before. Summation index still heading higher. I'll be looking for calls. Gold fell today, down about 8 bucks on the futures. It dropped more in the aftermarket. The XAU fell almost 9 points. ABX, GG and NEM all lost about 2 points. Volume was average. The dollar bounced today. I still am a believer in the gold shares. Volume has been strong to the upside. Perhaps the January calls. However, the weekly chart on the gold shares will look bearish unless there is a huge rise tomorrow. GE got killed today on a credit downgrade. It lost 1 1/2 on heavy volume. I still like the January calls there and am keeping an eye on them. Perhaps a purchase there next week for the new year. Mentally I'm doing OK, a bit tired with not enough sleep last night. After tomorrow, holiday time will be upon us. Volume will be low and the option premiums should decay. That's what usually happens but this has been a pretty intense trading year so who knows? I still want to get some January calls at some point. I'll try my best to pay attention. The discipline and focus required hopefully will return soon.

No follow through today as the Dow lost 100 points on average volume. Advance/declines were positive. I think the action today was expiration related. The trend is still up in my opinion. We are working off a short term oversold condition. May get some fireworks into Friday one way or the other. Declines can be bought in my opinion but I've been wrong before. Gold was up $25 today and the dollar continues in free fall. However the XAU lost a point as it may be time for gold to take a rest. ABX was up 3/4 but GG and NEM each lost about a buck. Volume was good again here for the gold shares. I'd like to get the calls here if we get a decent pullback in the next 2 weeks. GE lost 1/2 on average volume. I'm looking to get the January calls here as well, sometime before the end of the year. No rush though. Next week should be slow. Mentally I'm doing OK. I think today would have been a good day to take a chance on the GG puts as we had a one day reversal to the downside for the gold shares. I didn't do it though, as I've been hesitating about everything here lately. But that will eventually change. So we'll see. Otherwise it looks like I'm done trading for the 2008 trading year. I don't foresee anything else at the moment.

A Fed rally as the Dow gained 360 points on average volume. Advance/declines were 5 to 1 positive. Rates were cut 3/4 of a point and there is nothing left. I did not think the Fed would go so low. There is no ammo left as far as rates are concerned. The volume for yesterdays market was light on the decline. In retrospect, it was a clue. I'm not getting reliable volume readings and I will need to fix that. However, I had chances to get long and did not take them. Gold was up $6 and screamed higher after the Fed announcement. The XAU rose 8 points. The dollar has gotten crushed as the flight to safety ends and rates drop. ABX, GG and NEM were all up by around $2 on heavy volume. I'm still kicking myself for missing this one. The story is clear, get long gold. There are no pullbacks. GE was up almost a buck on good volume. They announced that their earnings forecasts for 2009 remain in place. Had a chance to do the December calls here as well but sat it out. Mentally I'm a bit frustrated at the moment. Opportunities have passed me by again. I need to pay more attention and have some courage. I'm still in a mental funk at the moment. The focus and desire seem to be lacking for whatever reasons. I'll need to get my head on straight and move forward.

The Dow lost 65 points today on average volume. Advance/declines were over 2 to 1 negative. We were down about 100 points more than the close but rallied back in the last 1/2 hour. Waiting on the Fed tomorrow. I'm not sure what to expect there. They are calling for a 1/2 point rate cut but that would take us to a 1/2% fed funds rate. Not much left to go after that. I would not be surprised with a 1/4 cut or no cut at all. But that's just a guess. No trades in the OEX for now but I'm leaning short after the Fed announcement. Gold continued strong today on a weaker dollar. Gold was up $16 and the XAU rose 4 1/3. ABX, GG and NEM were all up over a buck on good volume. I am thinking of getting some GG puts before the Fed tomorrow. However we came down on the gold shares before rallying at the end of the day so they are not as overbought as they were. My thinking is that the dollar will rally once the Fed is out of the way. A sell the news event for the gold shares. But it is more of a hunch than something that has technical merit. GE lost a bit on light volume. I'm still in the January calls camp there. I think just shooting for the Decembers this week is too much of a risk. We are working off the overbought condition very nicely and it is a matter of timing at this point. But again, anything can happen. Mentally I'm kind of in a funk with no clear decisiveness for a trade really. I've been risk averse for the past couple of weeks. I think it has more to do with not wanting to incur a loss before the end of the year. I also missed the gold trade and it would have been a beauty for December. So on it goes. I may try a Fed play but hopefully won't. The needed focus isn't there yet. As usual it's up to me. Tough game.

The Dow gained 64 points on average volume. Advance/declines were positive. We opened about 200 points lower and fought back all day from that. The market wants to go higher. Summation index still pointing upwards. No need to fight it. Fed next week and we'll go from there. Gold lost $6 but the XAU rose 2 3/4. The gold shares are leaders here. NEM up over a buck with ABX and GG fractional gainers. Volume was decent. Pullbacks are met with buying. I'd still like to get long here but we remain overbought. GE didn't do much and the volume was light. I still am looking at the January calls here. One week for December options and that might just be a bit too risky. Mentally I'm doing OK, could have used some more sleep. I'd like to get positioned for the beginning of next year with some calls. Perhaps if we get some weakness next week. I'm trying to focus on what needs to be done. I have a couple of ideas and am really thinking of trying a Fed play. I'll need to check the charts over the weekend. It's time for a break.

Back to the downside today as we lost 195 points on the Dow. Advance/declines were about 3 to 1 negative. Volume was light. I still think you can buy weakness here. We may get some selling into the Fed meeting but I would look at it as a buying opportunity for the January calls. That's my thinking at the moment. So we'll see. Gold was up another $17 today as the dollar has gotten creamed this week. However the XAU lost a point. It was a one day reversal to the downside there. ABX and GG had small gains and were well off their highs. NEM dropped 3/4. Volume was above average. Perhaps the gold shares will take a little rest here. I'm still going to look at the January calls in the gold shares. GE lost about a buck on light volume. I will be getting some January GE calls here at some point. Perhaps early next week. We've rolled over on the daily chart and I'll try and wait for GE to get oversold. Mentally I'm a bit tired, did not sleep as much as wanted. Option expiration next week and perhaps volatility will return if today is any indication. Inflation data tomorrow and I don't expect any big surprises but who knows? I'm trying to stay patient but at some point you've got to make a move. The focus isn't what it needs to be though but I'm working on it.