It was a positive Monday as the Dow gained 69 points on average volume. Advance/declines were 2 to 1 positive. Still moving higher but we do have a negative divergence on the RSI indicator. That could change if we have a strong up day tomorrow. However we are short term overbought and due for some pull back. We'll see. GE was up 1/3 on light volume. I'd still like the March calls if the opportunity presents itself. Gold was flat today and the XAU lost 1 1/4. ABX, GG and NEM had fractional moves one way or the other on light volume. The dollar was flat. It's getting late to try the February gold share calls but I still might give them a shot. The risk increases with each passing day though. I may have to go out to the March series. Mentally I'm a bit tired. I'd like to see the indices head lower here for a few days to give me a chance at the February OEX calls for next week. This would be a short term trade with a life of a few days. Not exactly what I normally do but if there's a decent signal I'm willing to give it a try. I would like to attempt some type of trade before the February options are gone. So we'll see what happens.

The employment numbers came out and the market trudges on. The Dow gained 30 points today on lighter volume. Advance/declines were negative. The indices tried to sell off but the uptrend remains intact. Don't fight the trend. We are short term overbought again though. GE lost 20 cents on light volume. Nothing to do but wait there. I'm still interested in the March calls there. Gold lost $4 today and the XAU was down 1 1/2. ABX, GG and NEM all had fractional losses on lighter volume. Not exactly sure which way to go here now. Getting overbought short term so the ABX calls will have to wait. The dollar showed a bit more strength today. We are at a key trend line for the US dollar longer term. We have a 3 year line of support that comes in at around the 77 level. If it holds the dollar will move higher. If not then a weaker dollar could and should be supportive of gold prices. The jury is still out on this one. But it is something to keep an eye on. Mentally I'm a bit tired, did not sleep enough. Plenty to ponder over the weekend with 2 weeks to go in the February option cycle. I'll be checking the charts and trying to come up with some type of game plan. For now it's Friday afternoon and time for a break.

We were lower to flat for most of the day but rallied in the last hour to finished higher by 20 points on the Dow. Advance/declines were positive and the volume was average. Bernanke flapped his gums and the market ignored it. Awaiting tomorrows employment data. GE was flat today on light volume. It too was lower for most of the day. Perhaps I'll get a chance at the March calls eventually. Gold was the story of the day, up $20. The dollar had a strong rally as well. We are still seeing a disconnect here. I'm not sure what to make of it. The XAU was up 4 3/4. ABX rose 1 1/8, GG up a buck and NEM led the way higher by 1 2/3. Volume was average. It looks like the window of opportunity has passed for the February ABX calls. We aren't completely overbought yet, however we have moved pretty good from the recent lows. The options are pricey. There is a chance we could pull back next week but the risk to enter the trade would be pretty high. Gold took off during the day today and I can't say it was because of Bernanke or Egypt. So we will have to see where we go from here. I may switch to the GG calls, the option premiums there are more reasonable at this time. We'll see. Mentally I'm feeling OK. Not happy about not owning some gold share calls here if this really is a sustained move to the upside in the precious metal. But that remains to be seen and you've got to move on. We'll see what kind of reaction we get to the employment report.

Not much happened in the stock market today as the Dow ended the day with a gain of a point on average volume. Advance/declines were negative. The overall market was a bit weaker than the Dow. Waiting on the employment numbers for the markets next short term direction. Today was a pause to digest yesterdays gain in my opinion. GE lost 9 cents on light volume. It doesn't look like I'll be able to get the March calls at this rate unless we see some type of pullback. Hasn't happened yet. Gold lost $8 today but showed gains in the aftermarket. The XAU fell 2 1/4. ABX down 3/4, GG off 1/3 and NEM dropped 7/8. Volume was light on the decline. The dollar gained a touch today. I still would like to try the February ABX calls if the opportunity presents itself. I'll need to see some more decline though. Lighter volume on the decline could be a positive sign unless we are about to enter a sideways range. We'll see. Mentally I'm feeling OK, slept well. Two weeks and two days for the February option cycle. I'd like to try something but I am not about to push things. Bernanke speaks tomorrow and we'll see where we go from there.

Continuing higher with a vengeance as the Dow gained 148 points on average volume. Advance/declines were over 4 to 1 positive. Can we agree that the trend is up until further notice? Yes. It doesn't look like anything is in the way. Whatever the news, the market goes up. So stick with it. GE gained 2/3 on average volume. It doesn't look like I'll get a chance for the March calls there. This issue has had a great move since the end of November. Gold was up $5 and the XAU gained 6 1/3. ABX up 3/4, GG rose a buck and NEM led the way up 1 3/8. Volume was average. The gold shares have finally outperformed the metal itself. Perhaps the trend is going to change back to the upside here. The US dollar took another hit and was much lower. The economic data has been stronger, we have unrest in Egypt and rates in the US have moved higher. Yet the dollar continues to lose ground. The flight to safety trade is being unwound but it seems the fall in the dollar reflects more than that. Perhaps the economic recovery isn't as strong as being projected. Or maybe countries are diversifying out of the US dollar as the reserve currency. I can only guess. I canceled the open order for the February ABX calls. I'm hoping to try this trade again before expiration. Mentally I'm feeling OK. We're not overbought on the indices anymore, so there's room to move higher. Fridays action relieved the near term overbought condition. We'll see what tomorrow brings.

We ended the month on a positive note with the Dow gaining 68 points on average volume. Advance/declines were over 2 to 1 positive. The unrest in Egypt continues but it doesn't matter to the market today. It seems like there is nothing to derail the indices. The trend remains higher until further notice. That tune hasn't changed for quite some time. GE lost 6 cents on average volume. Nothing new to report there. Gold lost $7 and the XAU gained 1/4. ABX and NEM had fractional gains, while GG lost 1/2. Volume was good. The dollar lost some ground today and gold was down. It appears that the flight to safety trade continues to be unwound. If rioting in the streets of Egypt can't help find a bid for the dollar and gold, than what can? That said, I put in an order for some February ABX calls. I would still like to try this trade if I get the chance. However it must be done on my own terms. We'll see. Mentally I'm a bit tired, did not sleep well. February begins tomorrow and we should see the beginning of the month money flows. Bernanke speaks later in the week and we have Fridays employment report to look forward to. We'll take it one day at a time and see what happens.

Today we finally got some decent downside as the Dow lost 166 points on heavy volume. Advance/declines were around 4 to 1 negative. The decline had nothing to do with economics. The market finally took into account the unrest in the country of Egypt. It's been going on for a while but today it made headline news. There's rioting in the streets and it's possible the government won't hold up. The market never likes uncertainty, hence the sell off. GDP came in about around as expected and was not a factor. Players didn't like the numbers from MSFT and that helped the downward trend. We'll see if we get any downside follow through to the indices on Monday. I don't think this is the beginning of a protracted decline. But what do I know? GE lost a dime on good volume and continues to hold up quite well. Its relative strength is superb at the moment. I'd like the March calls at some point. Gold was up over $20 today as the flight to safety trade returned for a day at least. The dollar was higher as well. The XAU barely participated and rose almost a point. ABX up 7/8, GG was flat and NEM lost 3/8. So it was a mixed performance there. Volume was heavy. I'm hoping that the gold shares are trying to put in a bottom here but the jury is still out. I canceled the open order for the February ABX calls but I do still want to try that trade. Perhaps next week before the employment numbers. I'll have to check things on the charts over the weekend. Mentally I'm feeling OK. Today was the first serious decline in the indices in months. We still haven't broken the major uptrend line in the S&P 500. The trend remains higher for now. We will be moving back down on the summation index with todays action though. We'll have to wait and see what Monday brings. The weekend is upon us and it's time for a break.

We closed flat on todays session as the Dow ended the day with a gain of 4 points on average volume. Advance/declines were positive. We are short term overbought however in a market like this, it doesn't mean anything. We continue to grind higher. The overall market was stronger than the Dow today again. GDP tomorrow. GE was up 1/3 on average volume. Overbought here both short and medium term. I am still looking at the March calls for a possible trade here. I will need to see the overbought condition relieved first though. Gold lost $15 and more in the aftermarket. The XAU dropped 5 1/4. We reversed yesterdays bounce. ABX down 1 3/8, GG lost 3/4 and NEM fell 1 1/2. Volume was good. The US dollar lost some more ground today but once again it did not support the price of gold. Money is leaving both the dollar and gold. Money is leaving the bond market as well. Players are moving towards more risk and that money is finding a home in stocks. That is my best guess at the moment. I still want to try the ABX February calls. I have entered another open order. We'll see. Mentally I'm a bit tired, could have slept longer. I have no clue as to tomorrows GDP but I do think it won't be a weak number. How the market reacts will be the key, as always. There has been nothing in the way of the markets upwards progress. That will probably hold true tomorrow as well.

There weren't any changes from the Fed and the Dow managed a gain of 8 points. The overall market was much stronger that the Dow. Advance/declines were 2 to 1 positive. There is still nothing on the horizon to derail this market. We are getting short term overbought again but it hasn't mattered lately. The trend remains higher. GE lost 6 cents on average volume. I'm still hoping to eventually get some March calls there. The gold shares were the story today. Gold was up $10 and the XAU rose 7 1/4. ABX gained 1 2/3, GG up 1 1/2 and NEM rose 1 1/8. Volume was good. We were very oversold and due for a bounce. The dollar was lower again today. I did not get filled on my open order for the ABX calls. I canceled the order. I'll try again if we get some weakness in the next few trading sessions. I do still want to get some February ABX calls, however the opportunity may just have passed. We'll see. Mentally I'm feeling good, slept well enough. The continued strength in the stock indices has been nothing short of amazing in my opinion. The rally that started in the beginning of September continues unabated. It won't last forever. We are overbought both short and medium term. It would be much better for the overall health of this bull market if we got some sort of 10% correction. Hasn't happened though. I am keeping an eye on the gold shares and am hoping today was just a bounce. I still want to be able to try the February gold share call trade. But the market doesn't always accommodate your wishes. I'd expect tomorrow to be flat all around, waiting for Fridays GDP report.

The Dow tried to sell off today but came back once again. We were off 80 points but came back to only have a loss of 3. Advance/declines were slightly positive and the volume was good. The activity today is something that we have seen for weeks on end. The market just doesn't want to go down. You cannot fight that. We've got the Fed tomorrow so we'll see what kind of reaction that brings. GE lost 6 cents on very heavy volume. As I said yesterday, I'd like to try the calls there again if we get some downside. I'm looking at the March options. Gold lost $12 on the futures today, while the XAU dropped 1 3/4. ABX, GG and NEM were mixed with fractional gains and losses. Volume was pretty good. These issues were weaker during the day as well but came back with the overall market. The dollar continued weaker today but again, it didn't help the price of gold. I did put in an order for some February ABX calls but I'm not sure this is exactly the right time. However we are oversold there and a bounce is possible at any time in my opinion. As we all know, my opinion means nothing. The markets and individual issues will go where they please. Mentally I'm feeling OK, slept well. It appears the indices will continue to grind higher. That has been the case and there is no change for now. We'll see if there are any surprises for the Fed tomorrow. I don't expect any changes.

The Dow continued higher with a gain of 108 points on average volume. Advance/declines were over 2 to 1 positive. There is still nothing to derail the uptrend at this time. We do have a Fed meeting this week and the first look at 4th quarter GDP. However until the longer term uptrend line in the S&P 500 is broken to the downside with volume, we will continue higher. It won't last forever though. GE rose another 30 cents on heavy volume. I would like to try the calls here again for March on a pullback. That remains to be seen. Gold was up $3 today but sold off in the aftermarket. The XAU fell 1 1/2. ABX, GG and NEM all lost about 1/2 to 2/3. Volume was nothing special. The US dollar fell again today but it did nothing to support the price of gold. I'll try the February gold share calls at some point in the next 4 weeks unless we completely unravel to the downside. But for now it's a wait and see approach. Mentally I'm feeling tired, not enough sleep. A good start to the week for the bulls and we'll have to see if they can build on it. I don't expect any surprises from the Fed but you never know. The uptrend in the stock indices has been in place for quite a while. It won't last forever.

It was an upside expiration Friday as the Dow gained 49 points on average volume. Advance/declines were positive. GE led the market higher with blockbuster earnings. We were also getting to a mildly oversold condition but that was alleviated with todays action. The overall market continues to lag though. Plus the summation index is moving down. So there are crosscurrents going on here. GE soared 1 1/3 on extremely heavy volume. It was the biggest one day percentage move for GE in 2 years. The January call options were the proper play. Perhaps I should have taken a chance this week but hindsight is always correct. I certainly could not have predicted todays explosive move. But it is something to think about in the future. However I really do not have a good track record when it comes to the short term option trades. Gold lost $5 today and the XAU fell 2 1/8. ABX, GG and NEM had fractional moves one way or the other on average volume. The US dollar was down pretty good today and gold did not respond again. My guess is that the risk trade that worked so well last year is being unwound. With the economy supposedly on the mend, fear has moved into the back seat. There is currently no flight to safety into gold and the US dollar. Just as gold and the dollar moved higher together for a time last year, they are now moving lower together as money is reallocated into stocks. That's my guess. I still may try the gold share calls for February due to the oversold conditions in these issues. We'll see. Mentally I'm doing OK. Hard to say where the indices are headed near term. I guess I could make a case for either way. However with GE powering higher, I'm inclined to think that we will continue to move higher in a grinding fashion. But when the Dow is leading things higher, it usually means we are at the end of the ascent. So we'll see what happens. For now it's Friday afternoon and time for a break.

We opened lower today and the Dow was off 75 points during the day. But we made it all the way back to end the day with a slight loss of just 2 points. Advance/declines were negative and the volume was good. Once again the overall market was weaker than the Dow. The summation index has turned down however we still haven't broken the uptrend line on the S&P 500. But we have violated some uptrend lines of the smaller cap stocks. So we are at an important juncture with regards to the near term direction of the stock indices. GE was up a nickel before the earnings tomorrow. Volume was average. I'm guessing the market will take its cue for direction from GE tomorrow. We'll see. I have no trades there for now. Gold took a hit today, down over $20. The XAU lost 3 1/3. ABX down 3/4, with GG off 1/4. NEM was actually up 1/4. Volume was heavy in the gold shares. They were all lower as well but came back with the overall market. The US dollar was a bit higher today. I am looking at the February gold share call options. I will perhaps attempt this trade next week. We are oversold but have been in a kind of free fall since the beginning of the year. Today could have marked the end of the decline but that is a guess and the market will dictate when we turn around. There is no hurry to put this trade on. Mentally I'm feeling OK, slept well enough. The stock indices tried to sell off today but came back. It's hard to say how much of todays action was expiration related. We aren't fully oversold on the indices yet. As for the gold shares, we are oversold but don't have the Gold/XAU ratio buy signal just yet. We'll get through the expiration tomorrow and look forward to the weekend.

The Dow moved lower today by 12 points. The overall market was much weaker than the Dow though. Advance/declines were 3 to 1 negative and the volume was average. I'm not sure this is the beginning of something major to the downside. We do need to work off the overbought condition of the indices. The uptrend line from the beginning of September remains in place. Todays action should start to move the summation index lower and that's something that we will have to keep an eye on. GE lost 24 cents on good volume. Earnings on Friday and it's anybodies guess what happens after the release. I'm trying to stay on the sidelines there. It isn't worth the risk at this point. Gold was up a couple bucks today but the XAU fell 2 3/4. ABX and GG were down fractionally, while NEM dropped over a buck. We are oversold here and I am looking at the February calls here. The dollar was down again today and it really didn't help gold at all. There is a disconnect going on there and I don't know why. However I do believe that my next trade will be in the gold shares for February. We'll see. Mentally I'm feeling fine. Slept well enough and I'm back in the normal market routine. Today was the first really negative day that we've seen this year. We'll have to see if we bounce back tomorrow or get some downside follow through. What actually happens could be the near term key to the market.

We started the week with a gain of 50 points on good volume. Advance/declines were positive. We continue to grind higher. Nothing has changed with that respect. The summation index moves higher as well. 3 days left for the January option cycle. I will hopefully not attempt any trades for January. GE lost 22 cents on good volume. Earnings are due on Friday. GE has been moving higher for quite a while. Perhaps it's time for a rest. It sold off on the last earnings announcement 3 months ago. Gold was up $7 today and the XAU rose 2 3/3. ABX up a buck or so, GG up 1/3 and NEM up 7/8. Volume was average. The dollar lost a bit of ground. I am looking at the February option cycle for the gold shares. We are short term oversold. However I believe that we need to have some sideways movement for a period of time before we move higher once again. I could be wrong. No trades there for now. Mentally I'm feeling a bit tired. My constant meetings environment is over. I can now get back to focusing on the markets in the way that is required. I don't have any solid ideas at the moment but that will change as I get back to normal. The trend remains higher.

The relentless climb continues as the Dow tacked on another 55 points today on good volume. Advance/declines were positive. The overall market was stronger than the Dow. It set a nice tone going into a long holiday weekend. Nothing has changed. The trend is up. GE rose 22 cents on lighter volume. Earnings in a week. I probably should not try a trade there with 4 days to go in the January option cycle. But I can't promise anything. I still think we are going to move higher there. Gold took another hit, down $25. The XAU lost 3 1/8. ABX fell 1/3, GG dropped 1 1/2 and NEM lost 1 1/8. Volume was heavy. The dollar didn't do much today, just off a touch. Money is moving out of gold. That is what I read into the current situation. The longer term uptrend is still intact though. I will have to look at things over the weekend to see how low we can go before support kicks in. Mentally I'm feeling tired. It has been a long week of meetings and thankfully I don't foresee that happening again anytime in the near future. There is one more such meeting on Tuesday and that's it. I'm glad it's Friday and I intend to take a nice long rest over the holiday weekend. The charts will be checked but there is plenty of time for that.

We were lower from the start today, bounced around and ended the day with a loss of 23 points on the Dow. Advance/declines were negative and the volume was average. Digesting yesterdays gains is how I would describe it. Nothing in the overall market scenario has changed. GE lost 7 cents on lighter volume. 5 days left on the January options there which means the risk is pretty high to attempt a trade. I still may though. Gold was flat on the day but sold off over $10 in the aftermarket. The XAU shed 7 1/2 points. ABX down 2 1/2, GG off 1 1/2 and NEM fell a buck. Volume was average. The gold shares underperformed by a lot. I don't know the reason. The dollar got clobbered again and gold itself did not react in the typical fashion. There is something going on here but again, I don't know exactly what it is. If we get to a gold/XAU ration buy signal, then I'll look at the gold shares for a trade. Otherwise those charts look bearish. Mentally I'm tired again and it has been a long week. I'll be glad when it is over tomorrow and I can get back into a more normal market routine.

The Dow gained 83 points today on average volume. We were higher from the start and stayed there all day. Advance/declines were almost 3 to 1 positive. The trend is up, remains up and there isn't anything else to say. GE gained 4 cents on average volume. That wasn't much considering the positive day that we had. I still may try the calls there before the earnings on expiration Friday. We'll see. Gold gained a buck but the US dollar really took a hit. Gold itself should have had a better upside move. The XAU lost 1/4. ABX and GG were basically flat, while NEM lost 3/8. Volume was light to average. No trades here for now but I'm keeping an eye on the gold shares. Mentally I'm feeling tired. As I said before this isn't the usual market week for me with too many meetings and not enough time for the stock indices. This should be the only week as such this year. On to Thursday and I would expect more of the same, higher prices.

It was a positive day on Wall street as the Dow gained 34 points on average volume. Advance/declines were positive. We opened higher, eventually came back to unchanged and then rose back up again in the last 2 hours. All signs continue to point higher. We have worked off the short term overbought condition. GE rose 12 cents and it doesn't look like I'll get a chance for the January calls there again. Gold was up 10 bucks on the day and the XAU rose 3 7/8. ABX and GG gained about 7/8, while NEM was up 1/2. Volume was light. Is the decline now over for the gold shares? I don't think so but that's a guess. We are moving up from oversold on a technical basis. But the volume isn't anything to speak of yet. The dollar dropped a touch today. I may start to take a look at the February gold share calls. Mentally I'm feeling tired. Not sleeping enough and my usual schedule has been throw out of whack with a number of meetings that I must attend. I do not see any trades this week but I'll be keeping an eye on things.

The Dow lost 37 points today on average volume. Advance/declines were positive. The overall market was stronger than the Dow. Once again we sold off early, almost down 100 points and came back during the day. The trend remains up even though we have been moving lower the past 3 days on the Dow. No trend lines have been violated. GE gained 8 cents but was higher early in the day. Volume was average. I'll still try the calls again here but it doesn't look like I'll get the chance with only 8 days left in this option cycle. But who knows? Gold was up $5 and the XAU rose 1 1/4. ABX and GG were flat on the day. NEM gained 7/8. Volume was light. The dollar lost a bit of ground today. I still feel the trend is down for the gold shares. No trades one way or the other for now in gold. Mentally I'm feeling tired. I'm in meetings all week and my focus will be compromised. However if the opportunity to trade GE comes along again, I'll give it a try. My posts might be a bit brief this week.

The employment numbers came and went as the Dow lost 22 points today on good volume. Advance/declines were negative. We were down almost 100 at one point in the day but came back yet again. No uptrend lines have been broken and the trend remains intact. However the summation index is starting to stall here and we will have to keep an eye on it. The employment numbers were a bit weaker than expected but did not really excite the market one way or the other. The market did go down but it was well after the numbers had been digested. We're still overbought. GE lost 13 cents and was lower on the day as well. Volume was average. I'm still interested in trying the calls here again. Earnings are out in 2 weeks. Gold lost a couple of bucks as the dollar was stronger yet again. The XAU was up 1/3. ABX, GG and NEM all had fractional losses on average volume after being higher early on. These issues are looking bearish now. They've been in an uptrend for quite a while. I have no trades in mind there for now. Mentally I'm feeling a bit tired. I was called away for a meeting in the middle of the market day today so my feel for what what went on was skewed. I'll also be in meetings next week. However I am still going to try the GE calls if the opportunity presents itself. We got through the first week of the year on the positive side and that usually bodes well for the year to come. 2 weeks left in the January option cycle. I go over the charts this weekend and take it from there. For now it's the weekend and time for a rest.

A day of waiting as the Dow lost 25 points on good volume. Advance/declines were negative. All eyes will be on tomorrows employment report and the markets reaction to it. The trend is still up. Whenever we have tried to sell off in recent weeks, the stock indices just keep coming back. You cannot fight that, even though we have been very overbought for quite some time. We'll see what happens tomorrow. GE lost 8 cents on lighter volume. I'll still try the calls again there if I get a chance. Gold lost a couple bucks and the XAU continued lower, losing 4 7/8. ABX fell 2/3, while GG and NEM both dropped over a buck. Volume was good here again and the trend has changed from up to down. The dollar was stronger again today, so gold is not the place to be at the moment. I don't have any ideas for trading the gold shares except perhaps try the puts on a snap back rally. The technicals have broken down for the gold shares. Mentally I'm a bit tired, didn't sleep enough. The markets continue to grind higher even with todays slight loss. Unless there is some big surprise with tomorrows numbers, I expect that trend to continue. We'll see.

Another day, another gain for the Dow as we were up 32 points. Advance/declines were positive and the volume was average. Summation index continues higher. We continue to grind higher in a very overbought condition and it has been that way for weeks. Nothing has changed. Employment numbers on Friday and we'll go from there. Tomorrow should be a waiting game. GE was flat on the day with average volume. I'm looking to buy the calls here again if we get some downside. Earnings are out on expiration Friday. Still very overbought here as well. Gold continued lower, off $5 on the futures and we were lower than that. The dollar had a strong session. The XAU fell over 3 points. ABX down 1 3/4, GG lost 1/2 and NEM fell about a buck. Volume here was good again to the downside. The trend has changed here in my opinion. We will get some type of bounce before expiration if I had to hazard a guess. But the timing is the question and I don't have an answer at the moment. Perhaps I'll eventually try the March gold share puts. March is historically a poor month for the price of gold. That is a long way off though. Mentally I'm feeling tired. Did not sleep well. I'm still looking for another trade in the January option cycle. However I think that I will let the employment report pass before I attempt something. All signs still point to higher prices on the stock indices for now.

The Dow gained 20 points today on average volume. Advance/declines were negative. The market tried to sell off today, being negative for most of the day but it came back. The trend is up and that hasn't changed for weeks. We should continue to grind higher in the equity markets. GE gained 33 cents on good volume. Yes, I sold the January calls too early. I did not wait for my target price and we are almost there. Still very overbought here but it doesn't seem to matter. I may want to try these again if we get some type of decline before the earnings on January 21st. Gold got clobbered today, down $44 on the futures. The XAU fell 4 3/4 but was down about twice as much during the day. The gold shares came back with the overall market itself. ABX lost a buck, GG down 1/2 and NEM led the way down by 2 bucks. Volume was good. At least dumping the GG calls yesterday was the right move. The gold shares had lagged the metal itself and the volume on the rise was light. Where we go from here is the next question. The dollar was higher today. If the US dollar has a sustained rally, gold will not be looking good from the long side. I'm on the sidelines there for now. Mentally I'm feeling OK. I'm looking for the next trade but nothing seems like a good set up at the moment. It is hard not to lament what could have been with the GE calls after todays positive action in GE. But you've gotta put it behind you and move on. Win or lose the markets keep moving and they don't take into account anybodies trades. There are still quite a few trading sessions before the January expiration. I'll check things over tonight and go from there.

It was a positive start to the new year as the Dow gained 93 points on light volume. The advance/declines were 3 to 1 positive. We were up well over 100 points for most of the day but fell back in the last hour. The summation index continues higher. We are still very overbought. However there is nothing on the horizon to derail the uptrend for now. That will change eventually. GE was down a penny after being higher early. I bailed out of the GE calls. Not sure it was the right thing to do and I may buy them back before expiration if we get some downside. The overall gain was 410%. About 300% on the first purchase of the calls and then around 600% on the second purchase. A nice way to start the year but I may have been early on the sale. Time will tell. The candlestick daily chart isn't looking good with todays action. We'll see. Gold was up a touch in the futures market and sold off in the aftermarket. The XAU fell 2 3/4. The gold shares were down on better volume. ABX and NEM had fractional losses. GG fell a buck. I dumped these calls as well. I should have been out sooner in the day because I realized that my theory of new money coming into this issue for the new year just wasn't panning out. I managed a slight gain of 12% but it could have been much better if I hadn't hesitated. Still, it's better than a loss but improvement is needed. I'm not sure about gold here, it could stall out and roll over. The rally back to the highs has been on light volume. The dollar didn't do much today. Mentally I'm a bit tired. I'm still in the bullish camp here but would like to see some pullback near term to try some January calls again before the expiration. That's the ideal scenario. The employment report is out on Friday and we should move off of that. Not sure if I'll have another position before then. A good start to the week for the stock indices and we'll see if we can build on it.

We went out with a whimper as the Dow gained 7 points on very light volume. Advance/declines were positive. The overall market was weaker than the Dow despite the positive advance/decline line. I don't think we can make much of what went on this week due to the lack of volume. Next week should provide a better idea of the market picture. GE was up a dime on light volume. I will really have to think hard about dumping the January calls I have there in the beginning of next week. Still very overbought on the technicals there. I did have a specific price target in mind but it looks a bit unrealistic at the moment. We'll see. Gold was up $15 as we approach another all time high. The XAU gained 2 1/3. ABX, GG and NEM all had fractional gains on light volume and that is worrisome. The gold shares are lagging here and that isn't a positive. We'll see what happens Monday morning for a change in this situation hopefully. The dollar was down again today and that is supporting the price of gold for now. My GG calls gained some ground today but not much. Mentally I'm doing good, slept well. The 2010 trading year is behind me. I'm looking forward to a much better 2011. There is a lot to ponder over the weekend regarding the 2 trades that I'm currently holding. We'll see if my new money flow scenario pans out. But for now it's New Years eve and time for a break. Good Luck to everyone in the new trading year!

The Dow lost 15 points in this weeks usual light trading. Advance/declines were about even. Just hanging around here, waiting for next year. Still overbought both short and medium term. GE lost a few cents on light volume and my January calls lost a bit too. Still overbought here as well. I'm waiting for next week as I've stated before. Gold fell $7 on the futures and a bit more so far in the aftermarket. The XAU dropped 1 1/2. ABX, GG and NEM all had fractional losses on light volume. The dollar fell further but it didn't help gold. Hard to make anything of what is happening in this light volume vacuum. I'm holding on to the GG calls as well. Mentally I'm doing OK. Taking a look back at the past year of trading finds me with the worst losses since I started out in this crazy game. My trading capital took a hit to the tune of 58%. That's right. I lost over half my trading account in the past year. My losers swamped the few winners that I had in the last 12 months. There are no excuses. My ideas and strategy didn't work. My analysis of the markets was way off as well as my timing and risk control. It was ugly in virtually every facet of the game. I've made some adjustments going into 2011 but that doesn't guarantee anything. However this year is over so I'm wiping the slate clean and starting all over. It already looks better with the trades I have in place now but that could change in a heartbeat. I'll continue to put forth the effort that I believe is necessary for success and we'll see what happens.

The Dow gained 9 points today on very light volume. Advance/declines were almost 2 to 1 positive. We were higher most of the day but fell back in the final hour. Hard to decipher the market mood here. Perhaps it's just a waiting game for the end of the year. Still overbought and some decline would not necessarily be a bad thing. GE lost a nickel and my January calls fell a bit. Very overbought here and I would hope for some sideways action in the next couple of days. Gold gained $8 but the XAU only rose 3/4. The dollar was pretty weak today. The gold shares didn't do much, with fractional gains and losses on light volume. GG was up a bit and my January calls gained a touch. However the price action here hasn't been robust as we are almost at a new all time high for the precious metal. I will be keeping a close eye on what goes on here as I am not liking this trade as much as when it began. The gold shares are not acting as expected. Mentally I'm feeling OK. A couple of days left in the week, month and the year. It's a waiting game.

Another quiet day as the Dow gained 20 points on holiday light volume. Advance/declines were about even. Meandering around here is about the best way to describe it. Basically waiting for the beginning of 2011. Summation index moving higher. Hard to get excited here due to the lack of market participants. GE was up 13 cents and the volume here wasn't bad, considering. But we are very overbought and that condition needs to be relieved. My GE calls are still doing OK. Gold had a very good day, up $22. The XAU rose 4 3/8. ABX up 1 1/3, GG up 3/4 and NEM up 1 1/2. Volume was very light. My GG calls are in the black but unfortunately GG was the laggard of the group. I would have liked to have seen more of a gain there. I am beginning to think that I will be out of this trade sooner rather than later. The volume isn't there due to the holiday week. Also the gold shares are lagging the metal itself and that usually isn't bullish. The dollar didn't do much today but interest rates are on the rise in the US. That should attract money to the US dollar at some point. That won't be bullish for gold. On the plus side we were oversold on the gold shares and the technicals have turned up. We'll see how long that lasts. Mentally I'm feeling tired, did not sleep well or long enough. My 2 positions are in the black but we all know how quick things can change in this game. I'm still of the idea to hold on into the beginning of next year. That's where I stand at the moment.

A very slow back to work Monday as the Dow lost 18 points on light volume. Advance/declines were positive. A major East coast snow storm hampered the already sparse trading environment. It will be a thin trading scenario throughout the week. GE was up 15 cents and that helped my January calls. Overbought here though and it needs to take a rest or move sideways in order to move higher at the beginning of next year. We'll see. Gold gained a couple of bucks and the XAU fell 3/4. The US dollar was weaker today. ABX and NEM were flat on the day, while GG lost 1/4. Volume was very light here as well. I did place an order for some January GG calls overnight and it got filled this morning. We are oversold on the gold shares however that doesn't mean we can't get more oversold. I have been looking at this trade and I was going to give it a shot when it hit my price target on the options. I'm looking for money to flow into these issues at the beginning of the year. I could be wrong and have been a lot this past year. But I'm moving on. I do not plan on holding these options deep into January unless gold itself breaks out. Mentally I'm feeling good after a nice break from the market action. I'm going to hold my 2 positions into next year so it is a matter of watching and waiting for next week. The GE calls are solidly in the black and the GG calls are where I bought them. I'm looking for a good start to the new year.

The Dow ended the shortened trading week with a gain of 14 points on very light volume. Advance/declines were slightly negative The overall market was weaker than the Dow. As has been the case, we're still overbought. GE was flat on light volume. My January calls lost a touch. Gold fell $6 and the US dollar was weaker as well. The XAU rose 2 points however. ABX was up 3/8, GG was flat and NEM gained 3/4. Volume was light. I do want to purchase some gold share calls next week. I'm looking at GG this time. That is the idea at the moment. Mentally I'm doing OK, slept well. It should be another slow week ahead, with the end of the year upon us. Time to clear the ledgers and get ready for 2011. It's time for a nice long weekend. Happy Holidays everyone!

The light volume levitation continues as the Dow gained 26 points. Advance/declines were positive. Still overbought, still moving higher and the holiday week rise continues. No sellers to be found but that will change eventually. GE gained 30 cents on light volume. My January calls gained some ground. GE remains overbought as well but I'm holding on into next year. Gold lost a touch and the XAU fell 1 2/3. ABX lost 1/2, GG down 1/4 and NEM dropped 3/4. Volume was very light again. The dollar dropped a touch as well. I'm looking at the gold share calls for January and will probably purchase something next week. That is the game plan for now. Mentally I'm doing good. One trading day left for the week and then a long weekend break. Right now everything is proceeding according to plan. We'll see how long that lasts.

Continuing higher in light volume trading as the Dow gained 55 points today. Advance/declines were over 2 to 1 positive. This should move the summation index to point to the upside. It's hard to trust light volume rallies but it is a holiday week. Staying overbought for longer than normal. That usually never ends well. We'll ride it out for now. GE gained 20 cents and my January calls moved up a bit. GE is very overbought as well. I'm still waiting for next year to sell these, hopefully at a profit. We are not at the target that I have in mind. Subject to adjustment as we move forward of course. Gold gained a couple of bucks and the XAU was up 1/3. ABX, GG and NEM were flat to fractional losers on very light volume. We're oversold on the gold shares and I'm looking at the GG January calls for the next trade. I'm going to try and wait for next week to buy them considering the thinly traded markets at the moment. We'll see. There's only 2 trading days left in this week. Mentally I'm feeling good. I already am in what looks to be a profitable GE for the start of the new year and I have a gold share idea waiting in the wings. However we all know the market will do what it wants. That's what makes the game so interesting as well as difficult. I don't expect much movement for the rest of this week.

A quiet day as expected as the Dow lost 13 points on light volume. Advance/declines were slightly positive. The overall market was stronger than the Dow. It should be an uneventful week. GE was flat on light volume. My January calls lost some ground on the time decay. That is to be expected but I don't think it will be terminal. But you never know. Gold gained $7 and the XAU was up 1 1/2. ABX up 1/4, GG up 1/2 and NEM up 3/4. Volume was light. The technicals here are oversold and I will be looking to get some January calls in the next few trading sessions. The dollar was up today as well but gold was higher anyway. I still think that new money will be going into gold at the beginning of the new year. This should be beneficial to the gold shares if it indeed does occur. I'm trying to be patient with the purchase though. It's a shortened trading week and volume is thin. There is potential for time decay in these options as well. Mentally I'm feeling OK. Not much else to report. I'll be keeping an eye on the gold shares.

It was an uneventful expiration as the Dow lost 7 points on good volume. Advance/declines were positive. It was a sideways week and the technicals are still overbought. We will now enter the end of the year holiday mode. Trading will most likely be slow. There is also an extra week in the January option cycle. GE lost 7 cents on decent volume. There's been a lot of good news out of GE so far this month so I wouldn't expect any more in the near term. I'm holding the January calls until next year. They're still showing a profit. Gold gained 8 bucks today and the dollar rose a bit as well. The XAU was up 3/4. GG and NEM both dropped 1/2, while ABX was flat. We are getting oversold here so I'll be taking a long hard look at the gold share calls in the next couple of weeks. That should be my next trade initiation. I do expect the gold shares to rise in the beginning of the year with new money flows. I could be wrong. Mentally I'm a bit tired, did not sleep well. That should be it for this years trading ledger and it was a disaster. Let's hope there isn't a repeat next year. I've made some changes in risk management and we'll see how they work out. The markets will have many opportunities available. It's just a matter of finding them. It's getting close to Friday evening and time for a rest.

Back to the upside as the Dow gained 41 points on average volume. I don't think that is all the decline we are going to get here but it puts an end to trying an OEX call trade. Advance/declines were 2 to 1 positive. Expiration tomorrow and then we'll move into holiday and end of the year mode. Things will slow down and trading will be thin. GE gained 28 cents today on average volume. My GE January calls are hanging in there. I'll be holding these until next year at this point. Gold fell $15 and the XAU dropped 2 7/8. The dollar didn't do much today. ABX and GG were both off 7/8, while NEM fell 2/3. Volume was good. The gold shares were lower but came back late. The gold shares have held up better than the metal itself. That's usually a bullish sign. I'll be keeping an eye on the January calls for the next trade. We are moving to oversold territory on the gold shares. I expect strength in these issues at the beginning of next year. Of course, I could be wrong. Mentally I'm doing OK. Not much else to do here but watch the expiration tomorrow. I do not expect any dramatic moves up or down in the equity markets in the next 2 weeks. It should be sideways action with perhaps a Santa Claus rally moving us a bit higher. Barring any unforeseen events, that's what I expect.

A down day in the markets? Can it really happen? The Dow lost 19 points today on average volume. Advance/declines were 2 to 1 negative. The overall market was weaker than the Dow. I do not expect this decline to last. I did place an overnight order for some December OEX calls. I am leaving the order open for tomorrow. This is a risky play with only 2 days left. However I do believe that we will see some decent upside before the close on Friday. I could be wrong and have been for much of the year. So we'll see. I may cancel the order tomorrow morning as well. GE lost 20 cents on good volume. My GE calls lost some ground but are still profitable. We are not near the target price that I have for GE prior to the January expiration. I'll adjust my expectations as we move forward in time. Gold lost $18 today and then some in the aftermarket. The XAU fell 3 7/8. ABX down 1/2, GG down 1/3 and NEM down 1 1/8. Volume was light. The dollar had a strong day and gave a reason to dump gold. The daily dollar candlestick chart is looking bullish. I am still looking to purchase some gold share calls before the new year. This could be the beginning of a pullback that I've been waiting for. Mentally I'm still feeling a bit tired. 2 days to go on the December options and I'm considering an OEX trade? This idea is really more of a feel for what is going on in the markets lately. Overbought markets tend to stay that way for much longer than anyone anticipates. That is what I think we're in the midst of. Declines will be aggressively purchased. So we'll see what happens.

It is a market that defies logic as we added another 48 points today. Advance/declines were negative though and the volume was average. The Fed made their announcement and we sold off a bit but then came back. We are so very overbought that I cannot even write about it anymore. If there is a pullback, I would buy it. However there are only 3 days left on the December option cycle. Plus being this overextended, the risk of getting the OEX calls is even more than usual. We'll see. GE gained a few cents on good volume. The January calls didn't close much different than yesterday. I'm holding on until further notice. Gold was up $6 but sold off in the aftermarket. The XAU lost 5/8. GG and NEM were flat, while ABX lost 3/4. Volume was average. The dollar was up a bit. No signal at the moment for the gold shares. Mentally I'm feeling tired, did not sleep well. The song remains the same and it's a broken record. Overbought, staying there and the market refuses to sell off. It will at some point and if this momentum keeps going up, the end won't be pretty. I still might try the OEX calls before Friday if we get some downside. My own reading of the technicals says that there will be another decent rise before the end of the week if we get some downward pressure. That's a guess as usual. We'll see what tomorrow brings.

The Dow rose 18 points today on average volume. Advances barely beat out declines. The overall market was weaker than the Dow. We won't go up forever and I think tomorrow should start a bit of a decline but I think it will be short lived. If we do pull back tomorrow I will be looking to purchase some OEX calls on weakness Wednesday. That is the idea at the moment. 4 days to go for the December expiration. GE lost a dime and my GE January options lost some ground. Volume was good. I'm holding on to these options at least until the beginning of next year barring an unforeseen collapse. Gold was up $13 and the XAU rose 2 1/3. ABX and NEM gained about 1/2, while GG was flat. Volume was light. The dollar lost ground today. I need to see the gold shares in oversold territory before trying the January calls there. Mentally I'm a bit tired, did not sleep well. If the market cooperates, I'll be trying one more trade for this year. If not it will probably mean the sidelines until a decent signal is generated. It has been a terrible trading year but lately perhaps things are starting to get back to profitability. That remains to be seen though.

The Dow continues to defy conventional logic and grinds higher. It gained 40 points today on average volume. Advance/declines were almost 2 to 1 positive. We really need to see some pullback or this won't end pretty. The market is very overbought still. And I have been saying that for over a week. This won't last forever but we have broken through the overhead resistance at 1220 on the S&P 500. The overall market remains stronger than the Dow. I'd like to see a pullback to 1220 on the S&P and then we could move higher from there. That would be my ideal scenario. GE gained 58 cents on heavy volume as they announced an increase in their quarterly dividend. Overbought here as well. Plus I don't know what other good news could come out for this issue after today. The January calls I own are solidly in the black. I would like to see a consolidation here before moving higher. We'll see. Gold lost $8 today and the XAU was up 1 1/4. ABX and GG were both off fractionally on light volume. NEM gained 1 1/8 on light volume. A mixed picture for the gold shares. The dollar bounced around today but finished a touch higher. I'm still bullish here for the January gold share calls. Mentally I'm feeling good. One week to go for the December options. If we see some weakness early in the week, I'll try the OEX calls. If not it will have to wait for next year most likely. GE has surpassed my expectations already but I'm going to hold on to the calls for now. We'll have to see if expiration week has its usual positive bias. After that, it should be slow going for the rest of the year. Friday afternoon and time for a rest.

The Dow lost a couple of points on good volume as the market refuses to go down. Advance/declines were positive. We are the most overbought as we have been in the entire year. Yet there is no decline. The overall market was stronger than the Dow today. If we get a pullback, I'll be looking at the OEX calls. GE gained a few cents on light volume. My January calls are still in the black. I'm holding on for now. Gold gained $9 on the futures as the dollar gained a touch. The XAU was up 1 3/4. ABX up 3/8, with GG up 3/4. NEM fell 1/2. Volume was mixed. I'd like to see some sideways action in the gold shares before purchasing some January calls. We'll see what happens. Mentally I'm feeling OK. 6 days to go for the December option expiration. I'll try the OEX calls if things work out as I would like. Otherwise I'll have to sit it out. Things should really slow down after next week due to the holidays and the end of the year. So we'll see what happens tomorrow and take it from there.

The Dow closed higher by 13 points today on good volume. Advance/declines were negative. We are very overbought both short and medium term. We really need to see some type of pullback. If not, a consolidation at the least. We could get a market melt up but the odds for that are slim. I'm still a believer in higher prices but I don't think it will just be a straight line. I'm still considering some OEX calls for next week. GE was flat today on lighter volume. The January calls I own are still in the black. GE needs to consolidate as well before moving higher. That would be the ideal scenario but we all know that rarely happens. Gold took a hit today as the dollar was higher for the third day in a row. It fell $25. The XAU lost 4 3/4. ABX down 1 1/4, GG down 1 1/2 and NEM down 1 5/8. Volume was pretty good to the downside. Perhaps this is the decline that I was waiting for to get long some January gold share calls. I'll be waiting for an oversold reading on the technicals and then I will purchase some options. That's the idea at the moment. I still feel that there is demand for the precious metal due to global economic uncertainty. I don't see that changing anytime soon. The dollar is also a major factor here. It seems to have found a bid lately but I don't think that will last forever. We'll see. Mentally I'm feeling a bit tired, did not sleep enough. 7 days left in the December option cycle. I'll be keeping an eye on the OEX here. If we see some near term weakness, I'll be trying the calls at the beginning of next week. That is the game plan for now.

It was a one day reversal to the downside as the Dow opened higher, was up around 90 points and then closed the day off 3. We sold off in the last hour. Not a good sign going forward for the bulls but we are oversold and due for some selling. Volume was heavy. The advance/declines were even once again. A pullback would be healthy in the overall scheme of things for the bulls. We got some news on extending some Federal tax breaks and that was the catalyst for the early rally. Summation index is moving higher but not with any conviction. GE has shown good relative strength lately and was up 33 cents on heavy volume. Overbought here as well and I expect GE to take a rest for next few days. The January calls I own are solidly in the black for now. I still expect to try an OEX trade before expiration if things set up for it. Gold lost $7 today and more in the aftermarket. The XAU fell 3 1/2. ABX down 2/3, while GG and NEM both lost 7/8. Volume was average. The gold shares opened higher as well but could not hold their gains. Perhaps traders are locking in their profits on these issues for this year. That's my guess at this point. I still would like to get some January calls. We'll see if the opportunity presents itself. Mentally I'm feeling OK. Not much else to report today. I expect tomorrow to be weak following todays action. We'll see how it goes.

The Dow lost 20 points today on light volume. Advance/declines were even. We are taking a needed pause as the S&P 500 stalls around the 1220 level. I would expect sideways to lower action for the next few days. I am expecting the market to go higher before December expiration. I have an OEX trade in mind. I will be looking to purchase some December calls at the end of this week or early next week. That is the game plan for now. GE lost a few cents today and the January calls I own lost a bit of ground. I'm sticking with them for now. I think in the long run this trade could pan out. But we'll see. Gold was up another $10 and more in the aftermarket. The XAU rose 3 1/2. ABX up 7/8, GG up 3/4 and NEM up 1 1/4. Volume was average. The dollar was higher and gold continued to rally. Perhaps the market knows something that we don't. Overbought here and staying there. I will get some gold share calls on the next pullback. The money just wants to come into gold. It seems as though there is no stopping that. Mentally I'm doing OK. This week should be a non-event if all goes as planned. A consolidation before we move higher. But I could be wrong and often am. I don't think we'll see a full fledged decline.

The Dow was lower for most of the day but made a final hour comeback to finish the day with a gain of 19 points. Advance/declines were positive and the volume was light. The employment numbers were much worse than expected but the market held up rather well. When the market ignores bad news it usually means higher prices. We'll have to see about that. Getting overbought now so a pullback wouldn't be out of the question. Summation index is turning. GE gained a few cents after being lower early on. The January calls that I have are still positive. It was a good week for GE and we'll see if it can build on that going forward. I'm still a believer that it will. Gold had a stellar day as the dollar got whacked on the employment news. The precious metal gained over $15 and added more in the aftermarket. The XAU rose 4 3/8. ABX up 3/4, GG up 1/2 and NEM up 1 7/8. Volume was lighter than it has been. ABX and GG look as though they have put in doji tops on the daily candlestick charts. The gold shares are overbought here but we just set a new high in the price of gold itself. Money continues to flock to gold. That is a trend that I expect to continue. That is why I would like to get some January gold share calls if we get a pullback from here. May not happen though. Mentally I'm doing OK. It was a very good week for the GE January call position and that gives me an optimistic view for how that trade may pan out. Plenty of time to go for that trade yet. The overall market seems like it wants to go higher. If we solidly get above 1220 on the S&P 500, I think the rally will continue. For now, it's Friday afternoon and time for a break.

The rally seems to have legs as the Dow gained 106 points on good volume. Advance/declines were over 2 to 1 positive. No more European worries for now it appears. How long that lasts is anybodies guess. It is as if the employment report tomorrow doesn't even matter at this point. Perhaps the market knows things that we don't. It usually does. Todays action should turn the summation index positive. We're not that overbought yet. GE gained 38 cents on good volume. We have broken through a daily downtrend line there today. My January calls are now in the black. I do have an upside target for GE but it isn't close to that yet. Moving to overbought there though. I'll be holding on for now. Gold was up around $10 most of the day but fell back for a gain of a buck. The XAU rose 3 1/3. ABX and NEM both gained 7/8, while GG rose 3/8. Volume was light to average for the gold shares. Gold itself almost broke out to a new high but fell back. The gold shares are outperforming here and that is usually bullish going forward. The dollar was a bit weaker today ahead of tomorrows employment numbers. If the dollar rally has ended, gold should move to new highs. Time will tell on that. I'd like to get some January gold share calls if we get a pullback before then. Mentally I'm doing OK, could have slept longer. The month has started out strongly and we are at S&P 500 resistance at 1220. I'd expect some hesitation here before moving to higher prices. That's my expectation but I've been wrong most of this year. We'll get the job numbers tomorrow and look forward to the weekend.

The Dow staged an impressive first day of the month rally as it gained 250 points on average volume. Advance/declines were over 3 to 1 positive. We were oversold and a bounce was due. What happens next is important for the medium term. If we fall back again, I think we can expect more of the same that we have seen recently with the market moving sideways. However if we can build on todays gain, I think we will take out the recent highs and the rally will resume. The summation index most likely turned up today but it will have to keep rising for the all clear signal going higher. We'll see. GE rose 47 cents on good volume. My January calls moved back to break even. Doubling the position at a better price seems to have been the right move at the moment. However we have plenty of time to go here. I do like todays action though and hopefully we can build on it. Gold only gained a couple of bucks even with the dollar losing ground. The XAU followed the overall market higher, gaining 4 1/3. ABX and NEM both rose 3/4, with GG tacking on 1/2. Volume was good to average. Perhaps gold will take a run at the highs as well. I think we'll need to see a lower dollar for that to occur but that's a guess as usual. I'll keep an eye on things. Mentally I'm doing OK. Today we got a rally out of nowhere and the following days will tell if it is for real or not. Fridays employment report and the market reaction to it will be very important. It could very well set the tone for the rest of the month. I think tomorrow will be a flat non-event while waiting for Fridays numbers. We'll see what happens.

The Dow continued lower today with a loss of 46 points on good volume. Advance/declines were 2 to 1 negative. We closed the month on a down note. The summation index continues lower. We are moving to oversold territory. I still think this is a sideways consolidation before we move higher. But I could be wrong and usually have been this year. GE lost 14 cents on average volume. I bought some more GE January calls. The calls I had already got cut in half so I doubled my position. This isn't something that I normally do. It may not work out but I decided to take a chance. My thinking is that GE will follow the overall market higher in December and January. We'll see. Gold rose $18 today despite strength again in the US dollar. The XAU gained 2 1/3. ABX up 1 1/3, GG up 1/2 and NEM up 3/4. Volume was average. There is lingering fear about European debt so the dollar and gold are once again viewed as safe havens. Gold has bounced at its 50 day moving average on a daily basis. Perhaps the gold shares are the correct trade here again but I'd like to wait until sometime in December to try that again. Mentally I'm feeling OK. Doubling up on a losing position is not recommended. For some reason though, I feel that this is the time to give it a try. Perhaps it's because there is so much time left on these options to turn profitable. Time will tell. December begins tomorrow and we have the employment numbers on Friday.

The Dow started the week with a loss of 39 points on light volume. Advance/declines were negative. We were off over 100 or more for a good portion of the day but came back in the last couple of hours. End of the month tomorrow. Summation index still moving down. We are oversold. No OEX trades for now but I would be leaning to buying some calls before the employment report on Friday. That's my best guess at the moment. GE was up 16 cents but my January calls aren't doing much. Still showing a loss but there's plenty of time left. However I'll need to see some kind of upward movement before the end of the year or I'll book the loss for 2010. Gold was up a couple of bucks as the dollar continued higher. The XAU gained a point. ABX and NEM were down fractionally, while GG showed a slight gain. Volume was light with the exception of NEM. NEM led the way up and there is a chance that it will also lead the way down. There's also a possibility that today was the bottom for NEM as well. We're almost at the 200 day moving average there and the candlestick pattern today could be a star at the end of a downtrend. We'll see. Mentally I'm doing OK, slept well enough. I'm not really getting any clear signals here and so I'm on the sidelines for the short term. I might try something before Fridays employment report if things line up. Which way is anybodies guess. I still feel we will see higher prices going into the new year. It's a matter of how we line up before that. Patience for now.

The Dow lost 95 points today in a holiday shortened session. Advance/declines were 2 to 1 negative and the volume was extremely light. We are going back and forth here with a resolution coming. If the S&P 500 drops below 1180 and stays there, then we will be in for more downside. If not, then I think we go back up to the recent highs. The summation index is still pointing down. The technicals are oversold at the moment. A case could be made for either side. The dollar is on the rise as Korean tensions escalate and Euro worries persist. Interesting enough, gold fell $12 today. Probably in reaction to the US dollars good day. The XAU dropped 3 3/4. ABX off 1/2, GG down a buck and NEM fell 1 3/8. Volume was very light. GE fell 12 cents and the January options that I hold are solidly in the red. If we break down further here, this trade will be over. Mentally I'm doing fine. I'll have to check the charts in the next couple of days and decide if there is a viable OEX trade here or not. The market usually rallies during Thanksgiving but that wasn't the case as the week ended. So we'll see. Interesting times.

The Dow bounced back 150 points in pre-holiday trading. Advance/declines were 4 to 1. Volume was light. We are moving sideways as we have now relieved the overbought condition of a couple of weeks ago. The summation index is still heading down but may turn up soon. That's a guess. The market has shrugged off the Korean tensions and the Irish debt problem. We could have had more downside with all the bad news but so far it looks like a consolidation before we go higher. GE was up 18 cents on light volume but it didn't help my January calls. I'm not sure this was the trade to do looking at it now in retrospect. But we'll see what happens. Gold lost $5 but the XAU gained a point. ABX and GG were fractionally higher, while NEM fell 1/2. Volume light here as well. The dollar didn't do much today. I'll look at the gold charts over the weekend and decide what to do there. I think the sidelines are the place to be there for now. Mentally I'm doing OK. That is about it for this weeks trading for all intents and purposes. Thanksgiving is tomorrow and then we have a shortened stock market session on Friday. Other markets will be closed. So it's time to take a break for a few days barring any unforeseen circumstances. Enjoy the holiday.

The Dow fell 142 points today on average volume. Advance/declines were 3 to 1 negative. Tensions in Korea will be part of the excuse. I again placed an open order for some OEX puts overnight but wasn't filled. Summation index continues lower. We are getting close to the 50 day moving average on the S&P 500 and we'll see if it provides support. Getting close to medium term oversold if we're not there already after todays action. GE fell 27 cents and needs to hold in here or I will be forced to sell the January calls early at a loss. I'll try this trade again if that occurs. I'm still a believer in the longer term market uptrend. Gold gained almost $20 today on the Korean conflict news. The dollar also had a very good day on safe haven buying. However the XAU fell 2 1/4 in sympathy with the overall market. ABX, GG and NEM had fractional moves one way or the other on average volume. I'm still interested in the gold share calls but will hold off on purchasing them for now. I don't think the dollar and gold will rise together for an extended period of time. I could be wrong as usual. I'm still thinking about the January gold share calls. I am also considering trying the options on GLD. We'll see. Mentally I'm feeling OK. Tomorrow should be a non event considering it is the day before a long holiday weekend. However there is plenty of economic data to be released. So we'll see what happens.

The Dow lost 25 points today on light volume. Advance/declines were even. We were down about 140 during the day but slowly came back. The overall market was stronger that the Dow. The summation index remains in a down trend. I placed an open order overnight for some OEX puts but it wasn't filled. I canceled the order during the day. Not sure if I will try that again this week but we'll see. The market is making up its mind where to go. GE lost 19 cents and my January calls keep losing ground. I may have to bail out of this sooner than I thought. Plenty of time but the price action isn't positive. Gold gained $5 and another $10 in the aftermarket. The XAU rose 2 1/3. ABX, GG and NEM all had fractional gains on light volume. The dollar gained some ground today but it did not affect the price of gold. No trades here for now. We are moving up from oversold on the technicals for gold. Mentally I'm a bit tired, did not sleep as much as I wanted. Short week and I should probably stay on the sidelines. I'll check things over tonight and go from there.

The Dow closed up 22 points today in light trading. Advance/declines were positive. A pretty quiet option expiration. Volume should continue to slow down next week for Thanksgiving. Summation index still pointing down. I thought about perhaps trying the OEX puts again. I'll mull over this idea during the weekend. I think that perhaps doing nothing is the best choice during next week. GE was up a bit and the volume was nothing special. My January calls are still in the red. I'll consider ending this trade over the weekend as well. Gold was off a touch today as well as the US dollar. The XAU gained 1 1/2. ABX, GG and NEM all had fractional gains on light volume. I'm still in a wait and see mode for the gold shares here. There is seasonal strength going into January. But it's the end of November and I think patience is warranted for now. But who knows? Mentally I'm feeling OK. I don't expect much action next week considering Thanksgiving is on Thursday and Friday will be a shortened session. So it's really time to sit tight I think. That is what I'll try and do. It's the end of the week and time for a rest.

The Dow got the expected bounce today, up 173 points on good volume. Advance/declines were 4 to 1 positive. Expiration tomorrow and then we'll see what happens. If the recent down move is more than just a short term correction, we should see weakness soon. If it is just a pause in the ongoing move higher, we may consolidate for a while before resuming the rally. I'm leaning towards a resumption of the downside. Perhaps some OEX puts will be in order next week. Gold gained $16 as the dollar was weaker today. The XAU rose 3 1/2. ABX was up 3/8, while GG and NEM were up 3/4. Volume was lighter than lately. We will have to see how things shake out here as well. I'm leaning towards the calls here after a period of sideways consolidation. Patience for now. GE was higher today and the January options that I hold were flat. This trade is not working out as I had hoped. I'm thinking that perhaps I will get out of this trade soon. When the underlying instrument moves higher and the calls don't budge, it isn't a good sign. So it's looking like just another mistake in the year of many. Mentally I'm feeling OK. Not much else to report. We'll get through tomorrow and then a holiday week of trading. The European debt fears seemed to blow over rather quickly this time. Perhaps they will resurface but that's a guess. On to Friday.

The Dow fell 15 points today on average volume. Advance/declines were positive. The overall market was stronger than the Dow. We are oversold and due for a bounce. I did cancel the open order for the OEX calls but I do think that trade could work in the next 2 trading sessions. I may try again tomorrow. Getting medium term oversold as well and will be with any negative action tomorrow. This would be a risky trade but the odds are in favor for a bounce. GE was flat on the day and my January calls are slowly losing ground. I may not hold this into next year after all. We'll see. Gold lost a touch in the futures market. The XAU gained 1/2. ABX, GG and NEM had fractional moves one way or the other on light volume. The dollar dropped slightly. No trades in mind here at the moment. Mentally I'm feeling OK. Just 2 days before option expiration and then a shortened holiday week. Perhaps the best course of action will be to just stay on the sidelines. I'll see how we open tomorrow and go from there. The trend is still lower for now, even if we get the expected bounce.

The Dow continued lower today and fell 178 points on good volume. Advance/declines were 6 to 1 negative. The summation index is heading down. Trouble in Europe surfaced again, with Ireland being todays main culprit. The trend has changed but we are oversold and I think there will be a decent bounce before expiration. I have an open order in for some OEX calls. I was just going to pack it in with regards to trading for the year but I've changed my mind. Opportunities should be taken advantage of. We'll see what happens. I do think that we will be heading lower for a couple of weeks though. Gold got clobbered again as the dollar continues higher. The precious metal futures lost over $35. The XAU fell 6 and change. ABX, GG and NEM were all lower by a buck or more on good volume. I don't have any trades in mind here but I will get long when there is a valid signal in my opinion. GE dropped 1/3 on better than average volume. The calls I own lost a bit of ground but this is a longer term trade. I'll dump them if we completely fall apart here but I do not expect that to happen. Of course I've been wrong most of the year. Mentally I'm feeling OK. The psychology of the market is changing here from bullish to bearish. I don't think that it will last too long but we'll see. 3 days to go for the November option cycle. If my order for the OEX calls isn't filled tomorrow I may have to adjust it. My hope is that it gets filled on a weaker opening. We all know that hope isn't a good way to trade. So we'll see what happens overnight and take it from there.

The Dow gained 9 points today on lighter volume. We were up over 80 during the day. Advance/declines were negative. The overall market was weaker that the Dow. The market tried to rally but could not hold on. Does that mean tomorrow will be negative? Perhaps. Still short term oversold here. The summation index is heading lower. The path of least resistance is lower for now. Gold was up $3 but sold off in the aftermarket. The XAU fell 3 1/4. ABX and GG were off 1/2, while NEM fell 7/8. Volume was very light. I thought about getting some GG calls today for tomorrows inflation report. However the dollar remains strong lately and gained more ground today. So I didn't do anything. GE was down a bit and the January calls I own dropped into the red. If the market has a significant drop here, this trade may not pan out either. So we'll see. Mentally I'm feeling a bit tired. Expiration week is upon us. We are still medium term overbought. Tomorrow could get interesting considering we are short term oversold. There's a chance it could be a very down day but that is a guess as usual.

The remaining trading days of last week saw the Dow with a slight gain on Wednesday followed by weakness Thursday and Friday. The summation index looks to have rolled over here and is heading down. We are short term oversold at this point but medium term neutral. Expiration week is upon us and it usually has a positive bias. GE fell along with the overall market and the open order that I left in got filled. It's the January 2011 GE calls. I plan on holding these until after the earnings are released in January. That is the game plan for now. Gold didn't do much until Friday when it got clobbered and dropped over $35. The gold shares themselves are actually holding up better than the metal here. That is usually bullish going forward. The US dollar finished the rest of the week with gains and put in a solid week. We have held the key area of 76 for now. Mentally I'm feeling great after some time away from the markets. Perhaps I'll take vacations more often. Plenty of economic data out in the coming week for the markets to chew on. A holiday week after that. I think that next week will tell if this decline is just a blip in the ongoing rise or the start of something more meaningful to the downside. We'll see what happens.

A bit of downside today as the Dow lost 60 points on average volume. Advance/declines were 3 to 1 negative. I don't think it's the beginning of anything sustained but I've been wrong before. Quite a lot this year by the way. GE lost a touch and I'm leaving in the open order for the January calls. I'll be on vacation for the rest of the week. Gold had a sharp one day reversal today, opening higher and closing lower. Although the futures remained in positive territory, we sold off $20 in the aftermarket. The XAU lost almost 6 after being higher early on. ABX fell 1/3, GG off 1 1/3 and NEM dropped 2 1/8. All had very heavy volume on downside reversals. I'm not sure how long this will last but the charts look bearish after todays action. The dollar had another good day. So the US dollar index has reversed to the upside after breaking the key level of 76. That is not what traders expected. Golds volatility returned today and that is why it is a very tough market to trade at times. I'll still be looking to get long the gold shares in the future though. Mentally I'm doing OK, a bit tired. There will not be any blog postings for the rest of the week as I am taking the rest of the week off. It's my first vacation from the markets since the summer of 2006. I'll post a recap of the rest of this week on Sunday.

The Dow fell 37 points today on lighter than lately volume. Advance/declines were negative. We were overbought so a pause here is expected. I doubt it will turn into anymore more than that. The Fed is providing the liquidity to keep the market going. Until that changes, the trend is up. The overall market was stronger than the Dow which usually leads to higher prices going forward. I'm leaving in the open order for the GE January calls but we'll need to see a drop in prices for this to get filled. Gold made another new high today, even with strength in the dollar. The XAU gained 5 1/4. ABX up 2 , GG up 1 3/8 and NEM up a buck. Volume was good for ABX, average for the others. I've said for weeks that money continues to flow into gold and that hasn't changed despite being overbought for an extended period of time. Nothing can derail this market at the moment. I've had many opportunities to take trading positions in the gold shares and I've missed them all. Hopefully I'll do better in the future. Mentally I'm doing OK, slept well enough. Not much else to report. We'll see what tomorrow brings but it should be more of the same.

The Dow gained 9 points on good volume. Advance/declines were positive. The employment report came out much stronger than anticipated. We are short and medium term overbought and staying there. If the employment report is to be believed perhaps we will start to hear about the economy moving too fast. Maybe the coming easing from the Fed isn't needed. That's a guess as usual. I expect some type of pull back in the next 2 days but nothing that will derail this market. Gold was up another $14 today despite a stronger dollar. The XAU gained 3/4. ABX, GG and NEM had slight fractional moves one way or the other on average volume. Gold is about at $1400. With no signs of slowing down. I do still like the gold shares but they will need to take a rest at some point. Or maybe not. We're overbought there again but it hasn't meant anything lately. I'm still leaving in the GE January call trade to see if it will get filled. I'll need to see some weakness there for my price to be hit. So we'll see what happens. This is a longer term option trade that I usually don't do. Hasn't been filled yet and it could be another case of too little too late. Mentally I'm doing OK. Another losing trade this week but it's nothing new. That should just about do it for me this year. There would really have to be something that stands out for me to put on another position for 2010. And I don't see that happening. I'm also going on vacation next week for the first time since 2006. The market continues higher with lower interest rates and an accommodating Fed. Until that scenario changes the trend is up. We are also entering the favorable 3rd year of the presidential term. It's a time to be positive. The weekend is here and time to take a break from the markets.

The Dow exploded to the upside, gaining 219 points on heavy volume. Advance/declines were 5 to 1 positive. Again, my trade was a loser. I dumped the OEX puts for a 60% loss. Not a lot of money, so that was a plus if you can consider that a plus. The market is going nowhere but higher for the foreseeable future. Do not fight the Fed. Only long side trades should be considered at this point. I did place an order for the longer term GE calls but yesterday was probably the correct time to do that. I'm leaving that order open in case the price returns to the level that I'll purchase them. Gold took off as well, up $45 to a new record high. The XAU gained 9 1/2. ABX was up 7/8, GG up 1 5/8 and NEM up 2 3/8. Volume was good. The dollar has broken through the 76 level. Gold has nowhere to go but higher as well. I suppose that I should have gotten some gold share calls last week. I could have adjusted the order. But I didn't and it's just another mistake in a trading year full of them. There isn't anything that I can do about it now. Mentally I'm doing OK. But I need to take a break. My guess is that I'm done trading for the year. I need a fresh start at this point. I'll leave in the GE call order since it rolls into next year anyway. The Federal Reserve is going to try and revive the economy again. It worked somewhat last time but not enough to help with the employment situation. So we'll see what happens this time. The employment numbers come out tomorrow and I don't think they're going to matter. The dollar is still going to fall. The beneficiaries will be stocks and gold. That is where the profitable trades will be.

The much anticipated Fed announcement has come and gone. The Dow gained 26 points on good volume. Advance/declines were positive. The market was lower for much of the day, then sold off on the announcement. We then rallied all the way back to close near the highs of the day. We are still short and medium term overbought. I did purchase some OEX puts and they are already in the red. At least I adjusted the price down. I do expect some weakness here soon but I've been wrong before. Perhaps the employment report on Friday will be the catalyst. Gold lost $20 on the futures but gained ground in the aftermarket on the Fed easing. ABX fell 1/3, GG dropped 3/8 and NEM lost 3/4. All had good volume. These issues were also lower earlier in the day. The dollar dropped a bit on the Fed but not as much as traders expected in my opinion. Perhaps a weak jobs report will push the dollar lower and gold higher. We'll see. No gold share trades for now, we have moved back to overbought here as well. Mentally I'm a bit tired, did not sleep well or long enough last night. So I'm in the OEX trade and it already has the feel that perhaps we will just continue to grind higher and this has the potential to be yet another loser. However time will tell. Speaking of time, I don't think that I will be holding on to this position that long. The Fed did nothing that wasn't already expected. After a brief sell-off, the indices resumed their climb. I'll wait for Fridays employment numbers and go from there.

The Dow gained 64 points today on average volume. Advance/declines were almost 3 to 1 positive. It looks like we are going to try and break out to the upside. I am not a believer though. Last night I entered an order for some OEX puts. I am leaving it in for tomorrow. We will be both short and medium term overbought tomorrow on any positive movement in the indices. The Fed announcement should be a market mover tomorrow. We'll see what happens. Gold rose $6 today and the XAU was up 1 1/2. The dollar took a good drop today, however gold itself didn't do much. Another Fed waiting game here in my opinion. ABA and GG were both up about 5/8 on light volume. NEM reported earnings and fell 1 1/3 on good volume. I'd still like to try something in the gold shares if we get some type of pull back. That remains to be seen. Mentally I'm doing OK. So I'm going to try the OEX puts here on the Fed announcement. We also have the employment report out on Friday. I don't expect this trade to be held for a long time if it gets filled. I will again check the charts tonight and see if any adjustment needs to be made. Perhaps I will decide to cancel the open order but I doubt it. We should see some volatility tomorrow.

The Dow gained 6 points today on average volume. Advance/declines were positive. We were up over 100 points early. Not really overbought or oversold here. I think it's a waiting game for the Fed announcement on Wednesday. We'll get through the elections tomorrow. No OEX trades for now. Gold lost $7 on the futures today. The XAU gained 1/2. The dollar was up today. ABX, GG and NEM all had fractional moves one way or the other on light volume. Might try a gold share trade if we get a sell off from the Fed. We'll see. I'm also looking at longer term GE calls going out to next year. Mentally I'm feeling OK. Just under 3 weeks for the November option cycle. If there is a decent trade out there, now is the time to put it on. I'm still a bit gun shy from the lousy trading year that I've had but I can't let that stand in the way. I'll check the charts tonight and go from there.

The Dow closed the month with a gain of 4 points. Advance/declines were positive and the volume was lighter than lately. GDP for the 3rd quarter came in as expected and wasn't the market mover that I expected. We are still just moving sideways here and I expect some type of explosive move one way or the other soon. I don't think we will stay in a trading range forever. Either next weeks election results or the announcement by the Fed should be a catalyst. No OEX trades yet. Gold gained $15 on a slightly weaker dollar and possible terrorist bomb threat packages around the world. The XAU gained 2 3/4. ABX and NEM were up a buck, while GG gained 1/3. Volume was average. Nothing is stopping the upward movement of gold. Money continues to flow there. That is really where my next trade should be. At least that's my thought at the moment. But I'll have to ponder this over the weekend. Mentally I'm feeling OK. October was another good month for the stock indices and we never got the usual fall in the fall. Next week should be interesting considering we'll get the Fed and the employment report in the same week. There will be opportunities. Whether or not I'll be able to take advantage of them is another question. I really should have done something with the gold shares this week. But it's the story of 2010, missed chances and bad trades. I'll check the charts over the weekend and try and come up with a game plan for next week. It's the last Friday in October and time for a rest.

The Dow closed down 12 points today on average volume. Advance/declines were positive. The overall market was stronger than the Dow, Still moving sideways here but that could change tomorrow with the release of the 3rd quarter GDP. The summation index began to move lower. No OEX trades in mind at the moment. Gold was up $20 today as the dollar took a big drop despite weak economic data. The XAU gained 5 points. ABX and NEM rose about 1 1/2, while GG added 2 1/4. Volume was good in GG, average for the others. The earnings for ABX and GG were stellar. This was yet again another missed opportunity. The gold share calls that I wanted never got to my price and I should have made the adjustment. Had it not been such a dismal trading year so far, perhaps I would have been more aware and taken the chance. This failure mindset is yet another negative residual of a poor trading year. The gold shares had reached oversold again. The demand seems to be there regardless of the lofty prices. Mentally I'm doing OK, could have slept better. GDP in the morning and we'll see the markets reaction.

The Dow lost 43 points today on average volume. Advance/declines were over 2 to 1 negative but the overall indices were stronger than the Dow. We were down well over 100 points but came back as has been the pattern for quite some time now. It seems as though the market just wants to continue to grind higher. Until we see some real downside, that is the scenario that I expect. No OEX trades for now. Gold lost $16 today as the Dollar gained some more ground. The XAU lost 3 7/8. ABX and NEM each lost a buck, while GG fell about 1/2. Volume was a bit better than average. I canceled the open order for the November ABX calls before the earnings. We'll see how they come out and take it from there. I may try the order again. We're oversold on the gold shares here. I expect pretty good earnings but that doesn't mean the shares will rise. Mentally I'm feeling fine. GDP on Friday and the Fed next week. There will be plenty of information for the markets to digest. However, the overall trend remains up until proven otherwise. The summation index is moving sideways and after today it should start to head lower. That could be the sign of a change in direction but it hasn't happened yet. It's possible the summation index could head lower and the indices simply move sideways. We'll see.

The Dow opened lower but closed with a gain of 5 points. The advance/declines were negative. Volume was average. We are doing a whole lot of nothing here. Volatility is nonexistent again. Short term overbought. No OEX trades in mind at the moment. Gold opened lower as well but came back to be unchanged. The XAU gained 3/4. ABX, GG and NEM were flat on the day with light volume. The dollar had a decent day but gold did not react as much as would be expected. I left the ABX November call trade open for another day. Earnings for ABX before the open on Thursday. I'm expecting good numbers but that doesn't always mean the stock will go up. ABX is working off the recent oversold condition at the moment in my opinion. Mentally I'm doing OK. The market continues to grind higher. The summation index is moving forward but in a sideways channel. I'm not going to force anything here. Still plenty of time on the November options. We'll see what tomorrow brings.

The Dow closed up 31 points today on average volume. Advance/declines were positive. We were much higher on the open and faded out for the rest of the day. Not sure that means anything though. Summation index continues higher and the market grinds up. No change in that scenario, even with the one day sell-off of last week. No OEX trades in mind. We are moving back to short term overbought. Gold gained $14 and the XAU rose 2 3/4. ABX and GG gained about 1/2 each, while NEM was flat. Volume was light. The dollar fell a bit. The big cap gold stocks did not move as much as I would expect with a decent gain in gold. Earnings for GG and ABX in a couple of days. I placed another order for the ABX November calls. We'll need to see some downside for this order to be filled. If it isn't filled ahead of the earnings, I'll be canceling the order. So we'll see what happens. Mentally I'm feeling tired, did not sleep well. End of the month at the end of the week. Plenty of data this week including the first look at 3rd quarter GDP. The market continues higher for now.

The Dow lost 14 points today on light volume. Advance/declines were positive. Today the overall market was stronger than the Dow. So here we are, continuing to grind higher. Summation index moving sideways. Nothing new to report. We had some volatility earlier in the week but it tapered off. No OEX trades in mind at the moment. Gold was flat on the day in the futures market. The US dollar as well. The XAU gained 1/3. ABX, GG and NEM all had fractional moves to the upside on light volume. ABX and GG report earnings next week. I would like to try some ABX calls before the earnings and I will if the option prices reach what I believe to be a decent level. I canceled the open ABX November call trade for the weekend and will look to enter it again on Monday. Mentally I'm feeling OK. Not much else to report here. We'll close out October next week. There is a G-20 meeting this weekend but it will be the usual talk with no concrete action. I'll check the charts over the weekend as usual and decide if there are any trades available. I am looking at a longer term GE option trade for January. We'll see. It's the weekend and time for a rest.

The Dow gained 38 points today on good volume. Advance/declines were negative. The overall market was weaker than the Dow. The market seems to be earnings driven for the time being. No more economic data this week. Todays numbers were mixed. No OEX trades for now but I'm leaning towards trying the puts again. Gold fell $18 today as the dollar was a touch higher. The XAU dropped 2 1/3. ABX and GG were both off 1/2, while NEM dropped 1 1/4. Volume was good here as well. Perhaps the long gold trade is finally unwinding. I'm still leaving in my open order for the November ABX calls. It isn't close to being filled yet. I'll adjust things going into the weekend if necessary or simply cancel the order and wait for next week. Mentally I'm feeling OK. The jury is still out as to whether this is an actual top being formed or simply another consolidation until we continue higher. The summation index is moving sideways. That could be a precursor to a drop in prices. Or not. Patience is the key for now regarding trading the OEX. The gold shares are now oversold, so we'll see what happens there.

The Dow bounced back today as it gained 129 points on good volume. Advance/declines were 3 to 1 positive. So was yesterday it for the decline? The rest of the week should tell. If we don't fall back then I think we will simply continue to grind our way higher. Resistance is at 1200 on the S&P 500. The summation index probably moved back to positive territory today. There's a chance that we are perhaps building a top here as the volatility has picked up. We will have to wait and see what the market says. Gold bounced back as well, up $10. The XAU rose 3 1/3. ABX, GG and NEM all gained around 1/2 on average volume. I'm leaving in the open order for November ABX calls. We'll have to see some weakness to have this order filled. ABX reports its earnings next week as well. The dollar gave back all of yesterdays gains as well. Perhaps the gold shares will consolidate and move sideways here before another leg up. That's a guess as usual. Mentally I'm feeling OK. Not much else to report. Some economic data out tomorrow and that's about it except for earnings the rest of the week. No rush to do anything and there aren't really any solid OEX signals right now. Patience required.

We finally got some downside today as the Dow lost 165 points on heavy volume. Advance/declines were 4 to 1 negative. China raised interest rates and there was some Bank of America mortgage problem. Was todays action just a one day wonder? Stay tuned. This will turn the summation index down. Whether or not we get an extended decline remains to be seen. Gold took a hit today as well, dropping $35. The XAU fell 9 1/2. ABX lost 2 1/3, GG shed 2 and NEM led the way down by 2 1/2. Volume was pretty good. Could this be the end of the gold trade for now? The dollar had a very good day as well and is now bouncing from its oversold condition. I am not sure if this is a lasting trend. I did place an order for some ABX November calls. An extra week on these options. If this is the end of the gold trade than this trade will not work. However I expect that at some point gold will have some type of snap back bounce. So I'm willing to take a chance here. Mentally I'm feeling OK, could have slept more. Perhaps this is the beginning of the decline in the indices that I expected a month and a half ago. However, technically we broke through the resistance on good volume. One scenario would be that we return to the resistance and then begin a more sustained rise. That would mean at the most, this decline would hold at around 1120 on the S&P 500. At this point it's all a guess. We'll see what the market has to say.

The Dow gained 80 points today on good volume. Advance/declines were 2 to 1 positive. The market continues to gain ground and there is no letting up. Price and volume are leading the way. Summation index also continues higher. Overbought and that doesn't seem to mean anything. This can't go on forever, can it? I have no OEX trades at the moment. Gold was flat today on the futures, while the XAU lost 1 1/8. ABX, GG and NEM were mixed on light volume. The dollar opened higher and closed lower. There is nothing stopping gold at the moment either. Very overbought and has been for what seems like weeks now. I'll be looking at the gold share calls on a pull back. I've said that for weeks as well. Gold and the stock indices moving higher are the trends that have been in place since the end of August. That ties in with the weaker dollar in the same time period. 76 is the key level for the US dollar. Mentally I'm doing OK. Not much else to say here. I don't have any good ideas right now. I'll be on the sidelines until something looks good to me.