The Dow continued its winning ways as we gained another 56 points today on light volume. Light volume seems to be the norm these days. The advance/declines were about even. Overbought and staying there. Summation index continues to go higher. Overdue for a pullback. That said, you don't want to step in front of a freight train either. I don't have any OEX trades in mind except for perhaps some puts before the employment report on Friday. However after the last losing trade the prudent course of action for me will probably be to remain on the sidelines. GE was flat on the day with light volume. Stalling at the 50 day moving average. Gold was up again today, tacking on $16. The XAU gained 1 2/3. ABX, GG and NEM all had slight fractional gains to the upside on average volume. The US dollar was up again as well. Again, the question is why is gold moving up so much this week? I don't have an answer. Technically speaking we're not even close to overbought yet. Perhaps I'll have to take another look here. The gold share earnings will be out at the end of this month. Mentally I'm doing OK. No summer doldrums yet as the stock indices continue to move higher. I'd expect tomorrow to be a waiting game for the employment report but who knows? I'd like to find a trade for the July options here but nothing stands out. We'll see what tomorrow brings.

It was a relatively quiet post holiday session as the Dow lost 14 points on light volume. The advance/declines were about even. It was a mixed bag as the NASDAQ showed a slight gain. We're still overbought here but the market has the feel as though it wants to go higher. However some type of pause is due. GE was off a bit on light volume. Still below the downtrend line from February/May. Gold was up $16 after being up $10 yesterday. The XAU gained 5 points. ABX up 1 1/8, GG rose 1 7/8 and NEM gained 2/3. Volume was light. It looks like the RSI positive divergence for ABX is working. I have no explanation for the recent jump in gold. We were oversold but it has been quite a 2 day move. The US dollar was higher today as well. Something is going on but I certainly don't know what. Mentally I'm doing OK. A nice long weekend in the summer is always nice. 8 days left on the July option cycle. I don't really have any trades in mind at the moment. The employment report is out on Friday and that should be the next trigger for some type of sustained move. That's my guess at the moment.

We ended the week and started the second half of the year with a July 4th bang as the Dow exploded to the upside with a gain of 168 points. The advance/declines were 4 to 1 positive and the volume was light. The gaps in the summation index are expanding and that usually means that the rally has staying power. I left in the open order for the OEX puts and was filled this morning. That was a mistake. Obviously I should have simply canceled the order yesterday when I began to have my doubts about this trade. I bailed out later in the day today for a 30% loss to start the second half of the year. Not a lot of money in this trade but the mental capital drain is always more important. The stock indices had a great week. It's not often that you get an over 5% gain on the S&P 500 but we did it this week. We've broken through the daily downtrend line and the trend is up. GE was up 1/3 and the volume was good. Approaching the 50 day moving average. No trades there for now. Gold did not participate with the rally and lost $20 on the futures. The XAU fell 1 2/3 but was lower during the day. ABX dropped 1/2, GG lost 7/8 and NEM shed 1/4. Volume was light. The US dollar was flat on the day. Gold is losing its luster here for traders. We're oversold on the dollar here though. However the flight to safety trade is no more. Commodities have been falling as well and that isn't supportive to gold. Perhaps I'll look for the gold share calls later this summer. Mentally I'm doing OK. Another losing trade doesn't help matters. But at least when I made a mistake this time, I was able to admit it and get out. It's part of the game. I have no explanation for the markets strength this week. However the market knows things that we don't. Plus the market is never wrong. The fact that we rallied so much today on a day that would normally be quiet and slow says something. Perhaps we're going on to new highs for the year this summer. Time will tell. The long July 4th holiday weekend is upon us. It's a nice summer Friday and time for a rest.

The stock market is powering higher here as the Dow gained 153 points on average volume. The advance/declines were almost 3 to 1 positive. The Dow and the Dow transports have already broken through their daily downtrend lines of resistance. The summation index is trending higher. I adjusted down the price on my order for the OEX July puts but I'm thinking about just canceling it. The S&P 500 is at the resistance area but with other stock indices breaking out, the S&P may follow. I expect some beginning of the month money flows tomorrow. The stock indices are overbought here but that doesn't mean that they can't stay that way. GE was up 1/4 on average volume. Not even close to the resistance here but we are above the 200 day moving average. Gold lost $7 on the futures and more in the aftermarket despite a weaker US dollar. The XAU followed the stock indices higher with a gain of 1 5/8. ABX, GG and NEM all had fractional gains on light volume. Not exactly sure what to make of the gold shares here. I now don't think that I'll be trying any trades for the July option cycle for the gold shares. The troubles in Europe seem to have subsided for now, so the flight to safety aspect for gold is diminished. That's subject to change, of course. Mentally I'm feeling OK. Trying to figure out what to do with regards to the pending OEX put trade. The smart thing to do would most likely be to cancel the order and look for something else. I will have to think long and hard about it tonight. The first half of the year has ended and the trading account is only up 12%. That certainly isn't enough considering the risks that are taken. The return was much better but I haven't had a winning trade in months. As usual, I will try to have a better second half of the year performance. My guess is tomorrow will be a light volume affair before the long July 4th holiday weekend.

It's a 3 day winning streak as the Dow gained 72 points on better volume. The advance/declines were over 2 to 1 positive. It's got the feel of something real as we head higher. Summation index heading upwards. We are getting closer to the resistance zone. I've put in an open order for some OEX puts, adjusting the price for the distance remaining to resistance. At the rate we're going, we'll be at the resistance tomorrow. But nothing goes up forever. I'm not exactly sure this is the right trade to do however I'm going to leave it out there for now. GE gained another 1/8 on light volume. We have moved back above the 200 day moving average line here. No trades in GE for now. Gold mover higher by $10 today and the XAU rose 4 1/8. ABX was up about 1 1/4, while GG and NEM climbed 3/4. Volume was light. The US dollar was weaker again today. Perhaps the gold shares are the trade to do now, I certainly don't know. Uncertainty is not conducive to successful trading. I'll think things over tonight about gold. Mentally I'm doing OK. It certainly looks like the S&P 500 has put in a double bottom with the market movement this week. The measuring objective would take us right up to the resistance line at approximately 1320. I'm going to try the puts there and that is why I have the open order in. However the market at this juncture has the feel that it wants to go higher and probably through the resistance. That would lead to a retest of the highs from the beginning of May. We'll have to see how we go from here. End of the month tomorrow. Gold has started an oversold bounce in my opinion because of the weakness so far this week in the US dollar. I think the weakness in the dollar is also helping the stock indices. How long this continues is the question. I'll be trying to figure out the answer.

Another triple digit day to the upside as the Dow gained 145 points. The advance/declines were over 3 to 1 positive and the volume was light. The stock indices are looking forward to good news from Greece tomorrow. There's no other explanation for todays upside move. Perhaps some short covering as well. The summation index is now solidly moving higher. The trend is up but for how long? I'm still considering getting some OEX puts when we reach resistance. GE was up 1/8 on light volume and is back to its 200 day moving average. Gold gained $5 today and the XAU rose 3 1/8. The US dollar fell again today. Perhaps the breakout in the weekly US dollar chart was a false one. That would change the scenario for gold. ABX and GG gained 3/4, while NEM rose almost 1/2. Volume was light. Again, it looks like another positive RSI divergence in the daily ABX charts. I'm not sure if I'm going to try the calls here though. A little less than 3 weeks for the July option cycle and there's a holiday off thrown in there as well. So we'll see. Mentally I'm feeling a bit tired, did not sleep long enough. I guess we'll have to wait and see what the markets reaction to what happens in Greece is tomorrow and go from there. More overbought than oversold on the stock indices but not excessively so. If we see another big up move tomorrow, I may just try the OEX puts. But I'll have to ponder things once again tonight before any trades.

An upside start to the week as the Dow gained 109 points on light volume. The advance/declines were over 2 to 1 positive. Todays action should turn the summation index back to positive. However it is hard to trust light volume rallies as I've said before. Waiting on news from Europe about the Greece problems. I would have liked to try the OEX July calls if we saw weakness early this week but that hasn't happened. I suppose that I'll wait for the S&P 500 to reach resistance and go from there. GE was up 1/3 on light volume. Still below the 200 day moving average here. It's something to keep an eye on. Gold lost about $5 on the futures and the XAU gained 1/4. ABX, GG and NEM had slight fractional moves on light volume. Oversold on the technicals with the gold shares. Might try a bounce trade later this week but haven't decided about that just yet. The dollar was weaker today and it didn't help gold. Another possible bullish divergence for ABX on the RSI indicator. We'll see. Mentally I'm feeling OK, slept well enough. The S&P 500 is attempting to hold its 200 day moving average and has for now. The daily charts also show a potential double bottom. If the double bottom is valid, the measuring objective would take us up to the resistance. Time will tell. End of the month on Thursday and then a long holiday weekend. But we'll have to wait and see what happens in Europe this week first.

It was a down day to end the week as the Dow dropped 115 points on good volume. The advance/declines were negative. The summation index could start to head back down with todays action. However the S&P 500 is at its 200 day moving average and could be putting in a double bottom here on the daily charts. On the other hand, we did not follow through to the upside after yesterdays comeback in the stock indices. What I'm trying to say is that I have no clear direction of the markets next move. The technicals remain neither overbought or oversold. GE was lower today by 40 cents on good volume and is clearly below the 2oo day moving average. I've been using GE as a proxy for the overall market. It is saying that we are heading lower. GE is oversold here however. Gold fell around $20 today and the XAU dropped 4 1/2. The dollar had another good day and the weekly downtrend line has been broken to the upside. Gold had a pretty dismal week. ABX lost a buck, while GG and NEM each lost around 1 3/4. Volume was good. The RSI buy signal for ABX did not last long. My next line of thinking on the gold shares is perhaps the July GG puts. Not exactly sure on this either but will consider it over the weekend. Mentally I'm a bit tired, did not sleep well. An interesting week in the stock indices to be sure but that doesn't help the trading for me. I really need to pay more attention to exactly what is going on here. End of the month approaching next week. Plenty of economic data as well. Plus there's the problems over in Europe that seem to have the markets interest at the moment. Gold is going to try and hold the $1500 level in my opinion. But will it? That's another question that needs to be answered. So there will be plenty to ponder over the weekend to come up with a successful game plan for next week. It's Friday afternoon in the summer and time for a break.

A very topsy-turvy day as the Dow gapped down and was off by well over 200 points early but came back to be down only 60 at the close. The advance/declines were negative and the volume was heavy for lately. The stock indices came back on news that Greece got another bailout. The overall market was stronger than the Dow as the NASDAQ ended the day positive. Volatility has picked up needless to say. I think we're going to head higher but the technicals are still neither overbought or oversold. GE broke through its 200 day moving average and then rallied all the way back. It finished down 18 cents on the day with good volume. Gold took a hit as the US dollar rallied. The precious metal was down over $30 on the futures. The XAU was down 1 3/4 but was much lower early, following the stock indices. ABX and GG were both down over 3/4, while NEM only lost 1/8. Volume was average. I canceled the open order for the July ABX calls. Not exactly sure which way we are going to go here. The US dollar is breaking through the weekly downtrend line from last year right now. If that holds, gold should move lower. Mentally I'm doing OK. Today was volatile and I was was otherwise distracted as well. Not the greatest scenario that is conducive to successful trading. I'm going to have to review the charts tonight and go from there. My thought at the moment is that we are putting in a bottom in the stock indices. We'll see what tomorrow brings.

Back to the downside today as the Dow lost 80 points on light volume. The advance/declines were negative. We hung around the unchanged level for most of the day until the Fed announcement. That's when the decline began. I suppose traders didn't like what the Fed had to say or not say. Now we will have to see if this is the beginning of something bigger or just a pause to refresh before heading higher. I don't think that this is the start of a huge decline. I may change my mind about that when we reach the resistance in the S&P 500. That level as of now is 1325. GE fell 1/4 on light volume. Still above the 200 day moving average. We've been in a congestion zone here for the last 2 1/2 weeks. Gold gained $7 but fell in the aftermarket after the Fed. The XAU rose 1 1/2 but was higher early. ABX up 1/2, GG gained a buck and NEM rose 3/4. Volume was good here. The gold shares also fell back with the overall market. The US dollar rose on the Fed and that did not help the precious metal. I still have the order in for the ABX July calls but I'll be considering canceling it overnight. Perhaps this 2 day rally in ABX will be all we get from the RSI buy signal. That is the question. Mentally I'm feeling OK but could have slept more. The markets negative reaction to the Fed has thrown a little wrench into the recent up move. We're not overbought or oversold on the technicals at this point in time. I'm going to have to rethink things tonight, go over the charts and take it from there.

A nice pop to the upside before the Fed as the Dow gained 110 points. The advance/declines were 5 to 1 positive and the volume was average. The debate will now be focused on whether or not the rally we have seen lately is for real. We haven't yet gotten to the resistance area. That will be the key in my opinion. The summation index should be turning back to the upside with todays action. We'll see what the Fed says tomorrow and go from there. GE was up 1/3 on average volume. The 200 day moving average has held for now. So I think that the stock indices should hold up here with GE as the proxy for the market. Gold was up $5 and the XAU rose 6 1/3. The dollar lost ground today and has not broken through the weekly down trend line from last year. ABX up a buck, GG rose 1 1/8 and NEM tacked on a buck and a half. My ABX July calls were not filled but I'm leaving the ticket in. The RSI positive divergence signal was valid and confirmed by todays action. Perhaps the gold shares will follow the overall markets higher. That's my thinking at the moment. But it could all change tomorrow with the Fed. Mentally I'm feeling OK despite missing for now the ABX call trade. Another possibility with the Fed is that it will be a non event. It is the summer. The stock indices have had a nice short term move and the technicals are not even close to being overbought. So perhaps there is more room to go on the upside. We'll see what happens with the Fed tomorrow and the markets reaction.

It was a light volume levitation today as the Dow gained 76 points. Advance/declines were positive. Not much to make of todays action really. The stock index technicals are still oversold and it appears that we are trying to put in a bottom. Summation index still heading down though. We've got the Fed this week, with the announcement on Wednesday. We'll see what happens there. GE was flat on light volume as we continue to hover at the 200 day moving average. I am keeping an eye on what happens with GE here. Gold was up a couple of bucks while the US dollar drifted. The XAU gained 1/3. ABX was flat, GG up 7/8 and NEM rose 1/4. Volume was light. I placed an order for some ABX July calls. I'm leaving the order in overnight. I guess that I'm going to try the gold shares here for a bounce. GG saw some upwards movement today but ABX lagged. I'm not exactly sure this trade is the right move. The technicals are oversold but they have been for a couple of weeks. If the overall market falls again, the gold shares will follow. There is a positive divergence on the RSI indicator for ABX. I'm also thinking that the Fed announcement could be bullish for gold on a weaker US dollar. That is a guess and I certainly could be wrong there. Mentally I'm feeling OK. Another concern here for putting on a trade is that tomorrow is the beginning of summer. Summertime can in some instances be very slow. The summer doldrums. If that occurs trading options becomes even that much more difficult due to lack of movement.

It was a mixed market today as the Dow closed higher by 43 points. The advance/declines were positive and the volume was good. The NASDAQ was lower. Summation index still heading lower. We got through the expiration and the question now is where do we go from here? I certainly don't have any answers. The stock indices are trying to hold the line here. If they do, I think the most you can expect is a weak bounce back to resistance. If they don't hold up here, I think we'll be heading a lot lower. Next week will be important for sure. GE was up a nickel on average volume. Still holding at the 200 day moving average. Gold was up $10 and the XAU gained 2/3. The dollar took a hit today and I believe that we are right at the weekly resistance downtrend line. If that line holds, then the dollar should weaken and that would be a positive for gold. If it doesn't hold, the opposite is true. ABX, GG and NEM had fractional moves one way or the other on average volume. I'm looking at the ABX July 45 calls. They had heavy volume this week and the open interest expanded. Somebody is interested in them. I'm going to have to take a closer look over the weekend. Oversold both short and longer term on the gold shares. But if the market falls apart, everything will flounder. Mentally I'm feeling OK, slept well. Even if we get some type of rally here the overall trend has changed to down. It is also possible that we simply get a listless, drifting market of sideways action as well. I don't think we will be getting a rip roaring rally. But I've been wrong before of course. The focus lately has been on Greece, Europe and all of their problems. We've been down this road before. The technicals here are blown out to the oversold side. The trouble is that when that happens we at least see some type of sustained upside movement. Hasn't happened. Which means that it is possible that we simply fall apart here. I'm thinking that perhaps that may be postponed until later this summer. I don't know. Lots to ponder over the weekend as we roll into the July option cycle. For now it's Friday afternoon and time for a break.

Another interesting day in the markets as the Dow gained 64 points on average volume. The advance/declines were negative though and the overall market was weaker than the Dow. It looked like we were falling off a cliff but the stock indices rallied in the final hour. I'd like to think that we are trying to put in some type of short term bottom here but the market will go where it wants to. Summation index still heading lower. It is possible that there is a bullish divergence on the S&P 500 RSI daily technical indicator. We'll see if that pans out. GE opened below its 200 day moving average but ended the day back above it. Volume was average. I think that keeping an eye on GE here is important. I believe that the 200 day moving average is the line in the sand. I could be wrong and often am. Gold was up a few bucks and the US dollar was flat. The XAU fell 4 1/8. ABX down 7/8, GG lost 1 1/2 and NEM shed 2/3. Volume was good. Yesterday I thought that I would not be making any trades in the gold shares for a while. Today, I'm not so sure about that. Gold has held up surprisingly well here, however the gold shares have been pummeled. The Gold/XAU ratio remains overdue in the buy zone. I'm actually considering trying the gold share calls for July. Some type of bounce is long overdue. Mentally I'm feeling OK. Volatility is at its highest since March. The technicals on the stock indices are all oversold. Many of them are trying to hold at their 200 day moving averages. We are at an important juncture. If we do not hold up here, I think we will be heading much lower sooner rather than later. My own belief at the moment is that we'll have some type of bounce here and then head lower later this summer. But we all know how my ideas have worked out lately. We'll close out the June options tomorrow and go from there.

Back to the downside with a vengeance today as the Dow set a fresh new low. We lost 179 points on good volume. The advance/declines were over 4 to 1 negative. Well, so much for my theory that we'd seen the lows for this move. At this point I'm beginning to get the feeling that anything could happen. And I don't mean that in a good way if you're bullish. Summation index continuing lower. Todays action negates the bullish candlestick patterns of yesterday. The technicals are oversold and staying there on the stock indices and that isn't a good thing. GE is back at its 200 day moving average after losing 1/4 on good volume. I'd keep an eye on this issue here. If we break the 200 day, the market could be in bigger trouble. We'll see. Gold gained a couple of bucks and 5 more in the aftermarket as of right now. The dollar had a huge day to the upside as fear has taken its grip on the players. The precious metal is being viewed as a lesser safe haven at the moment. The XAU fell a point. ABX was flat, while GG and NEM had fractional gains on average volume. I think that there will indeed be a time to get long the gold shares. However I don't feel that the time is now. Mentally I'm doing as best that I can. 2 days left for the June cycle and I don't see myself taking any chances at this rate. I was at the dentist again today and that interrupted my already skewed market schedule. As I've said in the past, if you can't put forth the proper effort to be successful, don't even waste your time. We'll see how the rest of this week plays out and take it from there.

Got the bounce today as the Dow gained 123 points on average volume. The advance/declines were over 4 to 1 positive. Summation index still pointing down but I think the decline is over for now. I'm basing that on the daily S&P 500 candlestick chart, which now shows a bullish reversal pattern. Even if we drop back again tomorrow, I think we've seen the lows for this move. I could be wrong and often am. The technicals for the stock indices are still oversold but coming off of their lows. I might try the OEX puts for June but with only 3 days to go before expiration the risk is very high. It would probably be wiser to stay on the sidelines. GE was up 1/4 but off of its highs for the session. Volume was average. The 200 day moving average has held for now. Gold gained $7 and a little more in the aftermarket. The XAU rose 3 1/8. ABX and NEM were up around 1/2, while GG gained 7/8. Volume was light. The dollar dropped a bit today. There doesn't seem to be much interest in the gold shares here. The Gold/XAU remains strongly in the buy zone yet there hasn't been a rally in the gold shares. I'm keeping an eye on things here and will eventually try the calls. The weekly technicals are in the oversold zone. Mentally I'm doing the best I can. The botched trade of last week still weighs on my mind and not trying the calls again yesterday didn't help. The analysis has been solid but the trading tactics need adjustments. It's the continuing ongoing battle with myself. As usual it's a work in progress. Getting back to the stock indices, I'd expect to see a move back up to the declining tops line. That equates to around 1325 on the S&P 500. This should take a few weeks and that could be the area to try the OEX puts again. We'll see what happens if we get there.

A little back and forth today as the Dow gained a point on light volume. The advance/declines were negative. Summation index still heading down. If I had to guess, I'd say tomorrow will be an up day for a change. My work suggests that. Oversold here and staying there but that doesn't mean that we won't see a bounce. I didn't like the OEX option prices so I didn't take a position in the calls today. We'll see what happens tomorrow. GE didn't do much on light volume but is holding at the 200 day moving average for now. I believe that this is important for the overall market as well. If the 200 day holds we could see something better than a bounce near term. Time will tell. Gold was down around $15 today and the XAU fell 2 1/4. ABX and NEM dropped around 1/4, while GG fell a buck. Volume was light. The US dollar was lower today and that didn't help gold either. The head and shoulders top in GG looks valid. The measuring objective there would be around $38. That's quite a drop from where we are now. We'll see. No trades in gold for now. Mentally I'm feeling OK. Would have liked to get some OEX calls again today but didn't like the premiums. Only 4 days to go for the June option cycle. Risk is high. Some inflation data out later this week. It looks like I'll have to wait and see what happens tomorrow go from there. Perhaps there will be a chance to try the OEX puts later in the week.

No follow through to yesterdays weak bounce as the Dow lost 172 points on light volume. The advance/declines were 4 to 1 negative. I dumped the OEX calls that were profitable yesterday as today they turned into losers. Basically a 50% gain turned into a 50% loss. Not a lot of money involved once again but the constant inability to do the right thing is what the problem is. Actually my exit yesterday missed by a dime and then my exit today was only partially filled so I simply had to bail out at the market on the remainder of the order. Oh yes and pay twice the commission. There is nobody to blame but myself, as usual. Getting back to the stock indices, oversold and staying there. Summation index heading lower and the trend is down. Then why did I try the OEX calls? Because that trade did work, I just didn't get out right. But now getting the puts next week may have too much risk. I'll consider things over the weekend. GE fell 1/4 on average volume and is right at its 200 day moving average. I would expect GE to find some kind of support here. GE is in the same oversold and staying there mode. Gold lost $5 today and a bit more in the aftermarket. The XAU fell 3 1/2. ABX, GG and NEM all had fractional losses ranging for 3/8-7/8 on average volume. The gold shares are following the markets down however there might be a double bottom forming on the XAU daily charts. Next week will be telling there. The dollar had a great day in the flight to safety trade. But the precious metal did not follow. Perhaps because the dollar was so strong. Mentally I'm feeling a bit frustrated after watching a winning trade turn into a loser. The fact that I wasn't filled on my exit order yesterday irks me. But it has happened before and will probably again because I am simply a small player in the game. I don't have the same access to the marketplace as the bigger players. That is a fact of trading life. That doesn't mean that I can't be successful. It does mean that I have to make adjustments going forward. I'll ponder these things over the weekend as well as check out the charts. The trend is down until further notice and we've seen the highs for year at this point. Only one week until the June expiration and any trade put on will carry even more risk than usual. It's Friday afternoon and time for a break.

We got the expected bounce today as the Dow gained 75 points on light volume. Advance/declines were almost 2 to 1 positive. We were about 60 points higher than the close but sold off in the last hour. I had an order in to sell the OEX calls but it wasn't filled. Perhaps I got too greedy with the price. The calls are still in the black but I would have liked to get out of them today. This bounce may last a couple of days but I would like to be out before the weekend which is tomorrow. We'll see. GE was also higher during the day but sold off as well. Volume was very light. Gold was up $6 and the XAU gained 3 points. ABX was flat while GG and NEM gained 1/2. Volume light here as well. The dollar was up a bit today as well. The Gold/XAU ratio remains in the same strong buy territory that it's been in for weeks. No trades there for now. Mentally I'm feeling a bit tired. As I said, would have liked to exit the OEX call trade today. My order was within a dime of getting filled. I need to get out of this trade so that I can focus on the puts for next week. I do feel that is the trade that holds the most potential before the expiration on June 17th. So I'll see if we get any follow through to the upside tomorrow so that I can exit this trade. Stay tuned.

The Dow continues to fall as we lost another 21 points today. The advance/declines were about 3 to 1 negative and the volume was good. Very short term oversold now. Summation index heading lower. As much as I want to try the OEX puts I think a bounce is overdue. The technicals are blown out to the downside. I bought some OEX calls today in anticipation of the so called upcoming bounce. I could be wrong. This is a risky trade with only 7 days to go in the June option cycle. The options are about what I paid for them. I'll be out of this trade before the close on Friday. GE was flat on average volume. No trades there for now. Gold was down $5 today and the XAU fell 4 1/4. ABX and GG were both down a buck, while NEM fell 5/8. Volume was OK here. The dollar rose 1/3 today for no apparent reason. I also considered getting some June ABX calls today but decided to try the OEX instead. The Gold/XAU ratio buy signal hasn't been working here. There is also the potential head and shoulders top on the daily GG chart to consider as well. So it's the sidelines here for me in the gold shares. Mentally I'm feeling OK. Not exactly sure trying the OEX calls here was the right thing to do. The trend is down. However, sometimes the toughest things to do are the ones the ones that should be done. Technically the trade makes sense. It isn't a long term deal. That must be remembered. We'll see what happens tomorrow.

The market tried to rally today as we were up over 80 points during the day. However we sold off in the last couple of hours and ended the day with a loss of 19 points on the Dow. The advance/declines were positive and volume was light. If today was the bounce that we get then the market is in bigger trouble than I think. Oversold on the short term still. Summation index heading lower. I'd still like the OEX puts if we get a 3 day or so rally for the bounce. But like I said, if today was it then we're in trouble. So we'll see. GE was flat on average volume. No trade in mind there. Gold lost $3 and the XAU fell 2/3. ABX, GG and NEM all had fractional losses on light volume. The dollar was lower today and it didn't help gold. Getting oversold on the gold shares but not all the way there yet. The daily chart on GG still looks like a head and shoulders top. But it's still a dilemma with the price of gold so high. And so it goes. Mentally I'm feeling better. 8 days to go in the June option cycle. I still would like to try a trade here if the conditions set up properly. The trend is down and by now it's obvious. A nice snap back to the upside here would help to put on the OEX put trade. However there's a chance we may just continue lower in a hurry. Tomorrow will be very telling in my opinion. I'll be hoping we get some upside but the market will go where it wants.

We started the week on a down note as the Dow lost 61 points on average volume. The advance/declines were about 4 to 1 negative. Summation index heading lower. Oversold here and we are due for some type of bounce. If we get it, that will be the time to buy some puts in my opinion. However at the rate we are going, it is hard to see any upside coming. The technicals are oversold but I still feel that playing the downside on a bounce is the way to go. We'll see. GE fell 1/3 on good volume. GE is about at its 200 day moving average. No trades in mind there. Gold was up $5 today and the XAU fell 4 1/4. ABX down 1/3, GG fell 3/4 and NEM dropped 1 1/3. Volume was good to average. The US dollar rose today in the flight to safety. The Gold/XAU ratio is again at a screaming buy and has been on a buy signal for weeks. However this signal hasn't really worked lately. Therefore I'm hesitant to put on a long trade here. Gold itself is about to hit an all time high but the gold shares are nowhere near their highs. So despite the buy signal, I'm wary. Mentally I'm feeling tired, did not sleep well. I have decided that the next attempt at a trade for me will be some OEX puts. I will need to see a snap back first. I intend on holding the position until the Friday of expiration next week. That is the plan for now. The tone and tenor of the stock indices have changed. Lower is now the trend until further notice.

Continuing lower as the Dow lost 97 points on light volume. Advance/declines were over 2 to 1 negative. The summation index has rolled back over to the downside. Not short term oversold just yet. The employment report was weak, we sold off, came back and sold off again. It was a bearish week and the trend is down. I suppose I'll look to get some OEX puts on a snap back. GE was down 1/4 on average volume. Oversold and staying there on GE. That's never a good sign. Gold was up about $10 today on the weaker US dollar and flight to safety play. The XAU was flat. ABX and NEM had fractional losses, while GG had a fractional gain. Volume was light. The gold shares really aren't rallying with the precious metal itself. I would like to try the GG June puts here but it is hard to do with the rally in gold. The US dollar also shows no sign of moving back to the upside here. It's a dilemma for the GG short trade. Perhaps I'll just have to look elsewhere. Mentally I'm doing OK, slept well. So we had a bad week and now where do we go? I will look for some type of snap back next week to go short. That is my idea at the moment. I'll have plenty of time over the weekend to decide which path to follow. I will have to ponder what to do with the gold shares as well. Right now I'm going to take a break and clear my head from the goings on in the markets this past week. It's Friday afternoon and time for a break.

The Dow continued lower by 42 points today on average volume. The advance/declines were slightly negative. The overall market held up better than the Dow. We're short term oversold here but that doesn't mean that we can't go lower. We were down twice as much near the middle of the session, came back and rolled over again. The employment report is due out tomorrow and we'll have to see what the reaction to those numbers are. I don't really have a good handle on what's going on here. I'd like to maybe try the OEX puts before expiration. I'll need to see some type of upside first though. GE was flat on light volume. No trades there for now. Gold was off $10 and the XAU fell 1 3/8. The gold shares were lower early. The US dollar dropped again today. ABX down a buck, GG lost 2/3 and NEM fell 1/2. Volume was average. I am thinking of getting some calls for ABX or GG. However the technicals are not completely oversold. There is also a possibility that GG is forming a head and shoulders top on a daily basis. I could be wrong. What is true is that Gold itself has held up quite well lately. The Gold/XAU ratio remains on a buy signal. The weekly candlestick charts for the gold shares now look bearish though. A lot will depend on tomorrows action I suppose. Mentally I'm feeling OK, could have slept better. I would like to make some type of trade here but I'm not exactly sure what. I don't want to do anything stupid. But you never know. I'm getting the feeling here that I want to make a trade just to make a trade, if you know what I mean. That's a recipe for disaster. I think the trend has now turned to the downside for the indices. The bearish belt hold candlestick pattern shouldn't be ignored. We'll see what the employment report brings.

Everything changed today as the Dow got hammered, losing 279 points on good volume. The advance/declines were 4 to 1 negative. There was no apparent reason for the sell-off. The economic data was weak but that shouldn't cause a decline such as this. Something is going on behind the scenes once again. The S&P 500 daily candlestick chart now shows a bearish belt hold pattern. The trend has quickly shifted to the downside. I'm on the sidelines for now with regards to the OEX. GE lost 1/2 on good volume. Looks like the downside breakout in the GE trading pattern was a signal of things to come. Gold gained $6 on the futures, while the XAU fell 4 1/8. Gold held up rather well today. The US dollar gained some ground today. ABX, GG and NEM all had losses of at least 1/2 on good volume. I'm not sure about the gold shares here. Still short term overbought. I'll think it over tonight. Mentally I'm a bit tired. Also my daily market routine will be altered for the next 2 1/2 months due to a scheduling conflict. There is nothing that I can do about that but make the adjustments. That I will do. More importantly is the question, where do we go from here? It certainly looks like the answer is lower. How low and what is really going on is the mystery of the moment. I'm sure things will become apparent in due time. For now it's on to Thursday.

We started the week and ended the month with a nice breakout to the upside as the Dow gained 128 points on good volume. Advance/declines were 3 to 1 positive. The declining tops line from the beginning of May on the S&P 500 has been broken on decent volume. The summation index is heading higher. The trend is up for now. I certainly don't feel any better about not getting the OEX calls last week. But pullbacks can be bought and we still have 2 1/2 weeks on the June options. GE only managed a 20 cent gain today but the volume was good. I still don't have any trades in mind there. Gold lost $3 on the futures but the XAU rose 1/3. ABX, GG and NEM all had fractional gains on better volume, following the overall indices. Overbought here now and I have no trades in mind here at the moment. The dollar was lower again today and whatever uptrend we had there is gone. Mentally I'm doing OK but was at the dentist today and that took away my concentration for a while. I'll look to get some OEX calls on a snap back to the trend line that was just broken to the upside. Employment report due on Friday and that should be the next market mover.

An upwards drift as the Dow gained 38 points on very light volume. Advance/declines were 3 to 1 positive. The summation index has turned around suggesting that the path of least resistance is higher. We have made it back to the declining tops line on a daily basis that began at the start of the month. If we can get through there perhaps the rally has legs. End of the month when things get going again on Tuesday. GE was flat on light volume. The weekly Bollinger bands have tightened up which could be a precursor of a decent move one way or the other. Not sure what to do there so I'll simply wait it out. The daily chart is oversold though. I'll check things out this weekend. Gold continued higher as the dollar took a good hit today. The precious metal was up $13 today. The XAU gained 3 points. ABX and NEM had fractional gains, while GG was basically flat. Volume was light here once again. Short term overbought now on these issues. However the weekly dollar chart now looks bearish as the recent gains have quickly reversed. That should be supportive for gold. I will also say that the Gold/XAU ratio is still on a buy signal even with the recent strength in gold and the gold shares. So perhaps the June gold share calls are still in order. It's something to consider over the weekend. Mentally I'm feeling OK. Although I'm feeling that I should have gotten some OEX calls this past week. Perhaps I'll try that trade coming up. The thing that bothers me here is the volume. It has been very light for both the overall market and the gold shares. That isn't bullish. However the small stocks have shown good relative strength here leading the way higher and that is bullish. Plus the summation index will turn up with today action. So we have some crosscurrents. Plenty to ponder over the next 3 days. But for now it's Friday afternoon before an extended holiday weekend. Time for a rest.

Another day of drift in my opinion as the Dow gained 8 points on light volume. Advance/declines were over 2 to 1 positive as the overall market was much stronger than the Dow. We were higher but got the usual late day fade that has been occurring lately. GDP came and went. There wasn't much news or data to consider really. No conviction for the stock indices here. I'm thinking of changing my leaning to the plus side due to the oversold condition of the market. But I'm not thoroughly convinced yet. GE was up about 1/4 on light volume. Nothing doing there trading wise. Gold dropped $4 and the XAU gained 3/8. The dollar was weaker today and it did not help gold. ABX, GG and NEM all had fractional gains on light volume. Mildly overbought on these issues now. No trades in mind here before the long weekend. Mentally I'm feeling OK. When the market drifts with no clear trend, as it is doing now, it makes for tough options trading. Even tougher than it normally is. I'd expect tomorrow to be a light volume stagnant affair ahead of the holiday weekend. I don't plan on any trades tomorrow. Todays action might turn the summation index back to positive. We'll see. I'm on the sidelines until further notice.

We got an attempt at a bounce today as the Dow rose 38 points on average volume. Advance/declines were 2 to 1 positive. We were up about 80 points until the last hour. We're still oversold here. The question is was this all the market could do or is it the beginning of a multi-day rally? Answers to follow. The summation index is still heading down and I'll still take my cues from that. GE gained 1/8 on light volume. Nothing new to report there. Gold was up $3 and the US dollar was flat on the session. The XAU rose 2 1/2. We are finally getting some out performance on the gold shares vs. the precious metal. ABX, GG and NEM had fractional gains on light volume. We've moved to short term overbought for these issues. I'm thinking of perhaps trying the ABX calls next instead of GG. We'll see. No volume here or with the overall stock indices and that is not a positive in my mind. Mentally I'm feeling OK, slept well enough. 1st Quarter GDP revision out tomorrow and it could provide some movement. But it still feels as though we are just hanging around here. Going into a long holiday weekend coming up as well. I'll try and remain patient as there is really no other choice at the moment.

The Dow tried to gain ground today but ended the day with a loss of 25 points. Advance/declines were even and the volume was the usual light. The stock indices are oversold here and a bounce is expected again. No news to speak of today. GE lost 1/4 on light volume. We've broken down on GE and I expect the overall market to follow. We'll see. Gold was up $8 today and the XAU gained 5 points. ABX, GG and NEM all rose around a buck. Volume was light. I canceled my open order for GG June calls. GG has moved off of its oversold condition with todays action. It looks like another missed trade here. The price of the GG options haven't moved that much though. The dollar was weaker today and for once gold was in tandem. Mentally I'm doing OK. The stock indices are oversold. The summation index is heading lower. We have tops beneath tops and lower lows. I could try and play the bounce here but the trend is down. With the dollar and gold holding up well here, I think more downside is expected. Although we might see some upside near term for the stock indices, I don't think any sustainable rallies are imminent. We'll see what tomorrow brings.

We started the week off to the downside as the Dow lost 130 points on the current worries about Europe. Volume was light once again. The advance/declines were almost 4 to 1 negative. The summation index is pointing down, implying lower prices. I would expect a bounce again, since we are getting oversold once again. But we have been seeing lower highs and lower lows lately. That isn't bullish. GE lost 1/4 on light volume and broke to the downside from its consolidation. So I feel the signs are changing for the stock indices. Gold held up rather well with a gain of $6. The XAU fell 1 3/4. ABX, GG and NEM again had fractional gains and losses on light volume. The dollar had a good day today and gold rallied a bit as well. It does look like the flight to safety trade is making a comeback. I placed an open order again for the GG June calls. I'm not as sure about this trade as I was last week but we'll have to see what happens. I may also be late for this as there was plenty of volume in the GG calls today. But that's a guess as usual. Mentally I'm feeling OK, slept well. So where do we go from here? It's looking like lower prices although maybe not in a straight line down. The dollar rally won't help the stock indices to move up. Perhaps a defensive stance would be the best idea going forward. We'll see what happens with the GG trade attempt.

An interesting expiration Friday as the Dow opened lower, almost came all the way back and then closed back down again for a loss of 93 points. The advance/declines were almost 2 to 1 negative and the volume was average. We've been muddling around here for the past few weeks with no real conviction in the stock indices. A case could be made for either direction really. The summation index continues lower and I'm taking my cue from that. Volume has been pretty low lately as well. We need some interest to move the stock indices higher and I haven't seen any of that lately. GE dropped 1/3 on average volume. The weekly chart here looks bearish and it could be a harbinger of things to come for the indices. We'll see. Gold had a good day, up almost $20 on worries in Europe. This despite a good rise in the dollar. It looks as though the flight to safety trade may be coming back. The XAU only managed a gain of 3/4. ABX and NEM were flat, while GG had a fractional gain. Volume picked up a bit. I canceled my open order for the GG June calls. I will try again next week if I decide to continue in that direction. However once again today a decent rise in the precious metal itself did not carry over to the gold shares. The Gold/XAU ratio is still a screaming buy but it has been for a few weeks. Mentally I'm feeling OK. Moving to the June option cycle now with the usual 4 weeks minus a day for a holiday. I do believe that I'll be trying a trade in that time frame. Tough call as to where we go from here but that's always the case. I'm still favoring the gold share calls here though. I'll check the charts over the weekend and try to come up with a game plan. For now it's Friday afternoon and time for a break.

We continued higher today as the Dow gained 45 points on light volume. Advance/declines were positive. It seems like we are drifting here, as the volume is very light and there seems to be no conviction. Option expiration tomorrow. GE was up 20 cents on light volume. We are back to the 50 day moving average there. Gold lost $3 and the XAU was flat. ABX, GG and NEM had fractional moves one way or the other again. Volume light here as well. The dollar was off 1/3 but it didn't help gold or the gold shares. I still have an open order in for the June GG calls. Trying to move off of an oversold condition for the gold shares. We'll see. Mentally I'm feeling OK. Not much else to say here. We'll get through Friday and look forward to the weekend.

We got a bounce today as the Dow gained 80 points on light volume. Advance/declines were 3 to 1 positive. We will find out soon if this is an actual trading bottom or just a bounce. A case can be made either way I suppose. The summation index is still heading lower but we will have to see what todays action says. No OEX trades in mind with just a couple of days left for this months option cycle. GE gained back what it lost yesterday. Volume was average. Still in a trading range there. Gold gained $15 on the futures. The XAU gained 2 1/4. ABX, GG and NEM had fractional moves one way or the other on light volume. The US dollar was flat. I'm leaving in the open order for the GG June calls. Not close to getting filled as of yet. I'm still a believer in this trade for now. The gold shares remain oversold. Mentally I'm feeling OK. Not much else to report today. A simple waiting game is what it is now. We'll see if GG pulls back a bit more to fill the open option order and take it from there. That may or may not happen.

The Dow was lower from the start and ended the day down 68 points on average volume. Advance/declines were negative. We were down about 170 points this morning. The overall market was stronger than the Dow today and that might lead to a bounce tomorrow. The summation index is heading lower and we will use that as our proxy for what to expect in the near future. Lower prices. We may get a snap back to the uptrend line the was recently violated. We'll see. GE lost a bit of ground again and looks like it wants to break the trading range to the downside. Volume was average. Gold lost $10 today but the XAU gained a point. ABX, GG and NEM all had fractional gains on average volume. The dollar was a bit lower today. We could be at the turning point for the gold shares here. Oversold and the technicals are at the bottom of their channels. Perhaps the gold shares will now take the lead over the price of the precious metal. I'm leaving in the open order for the June GG calls. But I don't think that there is any rush here. If the overall stock indices drop, the gold shares will most likely fall or move sideways. My thinking is that the June gold share calls will be my next trade. Mentally I'm feeling OK. Tomorrow could be an interesting day as todays action portends some upside. However the market seems to have no real direction at the moment. When in doubt, stay out is one market rule. 3 days to go in the May option cycle. I'll leave in the GG option ticket for June and we'll see what happens.

We started the week off with a thud as the Dow fell 43 points on light volume. Advance/declines were 2 to 1 negative. The overall market was much weaker than the Dow. The summation index has rolled over. We are oversold, so a bounce would not be out of the question. However we have broken the daily uptrend line from March on the S%P 500. I believe the trend is changing to the downside here. We'll see. GE was down a bit on light volume. We are at the lower end of the recent trading range in GE. A breakout to the downside would confirm the down trend in the stock indices in my view. Gold lost $3 and the XAU was flat. ABX, GG and NEM had fractional gains on average volume. The gold shares were higher early. The dollar was lower today. The gold shares held up better than the stock market today. I did place an order for some GG June calls. I am leaving the order good until canceled. The price I am looking for is at least half of what they are trading for today. We are oversold on the gold shares. The Gold/XAU ratio is still very much in the buy zone. If there is weakness in the overall stock market, it should carry over to the gold shares. If I can get the price I want for these options, I'm willing to take the risk. We'll see. Mentally I'm feeling OK. 4 days left in the May option cycle. I do not anticipate any short term trades this week. That could change of course. I'd expect some follow through to the downside in the stock indices tomorrow.

There was a problem with the blog site yesterday. Therefore there is no entry for Thursday. Let me give you a quick recap. The Dow gained 65 points on average volume. Advance/declines were positive. GE was flat on light volume. Gold gained $5, while the XAU lost 1/2. The US dollar was down a bit. I thought about getting some OEX calls but did not. I did put in an order and it wasn't filled. The uptrend line in the S&P 500 from March is still intact. No clear signal here but we are getting oversold. I would like to try the OEX calls but time is running out and the risk increases with each passing day. Let's move on to today.

The Dow closed out the week with a loss of 100 points on average volume. Advance/declines were over 2 to 1 negative. It wasn't much of a week for the stock indices one way or the other. We are about to break the uptrend line on a daily basis in the S&P 500 that has been in effect sine March. The market would have to turn around strongly on Monday to negate that. We'll see. I did want the OEX calls yesterday but after today I'm not so sure. GE lost 1/4 on about average volume. Still in a sideways channel here but on the lower end. No trades here. Gold lost $13 on the futures. It came back a bit in the aftermarket. The XAU fell 1 1/3. ABX, GG and NEM had fractional moves one way or the other on average volume. Oversold here and staying that way. I would like to try the gold share calls for June. That could be the next trade at this point. The US dollar continued higher today and finished above its 50 day moving average. The question is how long does the US dollar rally last? That is one of the questions which will definitely affect gold. The Gold/XAU ratio continues to be saying buy gold here. Mentally I'm feeling tired, did not sleep well. There will be a lot to think about over the weekend. However there are only 5 days left in the May option cycle and the short term trades are not my strong suit. Lately, nothing has been. The stock indices look like they could go either way here. The summation index has probably turned back down after today. Gold is oversold and staying there. I'll check the charts over the weekend and take it from there. For now though, it's Friday afternoon and time for a break.

The Dow fell 130 points today on average volume. Advance/declines were about 3 to 1 negative. Almost the exact opposite market action from yesterday. We are right at a daily uptrend line that began in March. Not exactly sure what is going on here. If I had any guts I would try the OEX May calls on weakness tomorrow in anticipation of the uptrend line holding. We'll see. Again, we're not overbought or oversold here. I'll mull it over tonight and make my decision. GE lost about 1/4 on light volume. Still no trades in mind there. Gold was off $15 and the XAU fell 8 1/2. The drop in the gold shares has been relentless. ABX down 2 1/8, GG down 1 3/4 and NEM down 1 1/4. Volume was good. The US dollar had another good day and has had quite a rally in the past 5 trading sessions. I'm still considering the June gold share calls but not yet. The Gold/XAU ratio buy signal is off the charts and hasn't worked this time. That is letting you know that something is up. What exactly I do not know. And that's part of the problem of trying any kind of trade here. Mentally I'm feeling OK. So the question is now what to do tomorrow about an OEX trade. I'll check the charts again overnight. 7 days to go on the May option cycle.

Continuing higher today as the Dow gained 75 points on light volume. Advance/declines were almost 3 to 1 positive. The summation index has turned back to the upside. I'm still looking for higher prices here the only fly in the ointment would be the volume so far. It has been anemic. Still, it is looking like last weeks sell off is done. GE was up 1/4 on light volume. Still basically moving sideways here, no trades in mind. Gold was up $13 on the futures today but the XAU fell 7/8. ABX and NEM were both flat. GG lost 1/2. Volume was light here as well. I'm going to wait a couple of weeks here before trying the gold share calls again. That is the game plan at the moment. The Gold/XAU ratio is still at a screaming buy. Did not work when I tried it though. The dollar lost a bit today. Mentally I'm feeling a bit tired. The OEX calls have moved up a bit since last week but not as much as expected. We are still in an area of being not overbought or oversold. I am leaning towards higher prices for the stock indices into early next week. If we do see some weakness in the next couple of days, I am not sure if I'll try the calls or not. Stay tuned.

A quiet Monday as the Dow gained 46 points on light volume. Advance/declines were over 2 to 12 positive. Perhaps this will turn the summation index positive again. I placed an order for some OEX May calls overnight but it wasn't filled. I will possibly attempt this trade again if we get some weakness. GE was flat on light volume. No trades there for the foreseeable future. Gold was up $11 on the futures and that much again in the aftermarket. The XAU rose 4 1/3. ABX gained 7/8, GG added 1 1/3, while NEM tacked on a point. Volume was light. This is an attempt at a bounce in my opinion. This is the bounce that I mistimed last week in the losing ABX trade. Even though ABX rose today, it did not help the calls that I had. I actually did the right thing when dumping them at the close on Friday. Unless we get some sort of rip roaring gold rally from here. I don't expect that to happen. The US dollar was weaker today. I will need to see gold and the gold shares build a base of some sorts here before trying the calls again. Perhaps for June. Mentally I'm feeling OK. 9 days left in the May option cycle. We are not overbought or oversold here on the stock indices. That makes a trade here trickier than usual. My idea at the moment is to buy weakness. We'll see.

It was an interesting day as the employment report came out stronger than anticipated and the Dow rallied big early. We were up around 175 points in the morning but the market faded and we ended with a gain of 54 points. Advance/declines were almost 2 to 1 positive and the volume was good. Even with todays action we are still short term oversold. Perhaps I will give the OEX calls a try next week. But that isn't a given. GE was up a dime on light volume. Still in a trading range there. Gold gained $10 on the futures in a weak bounce. The XAU was up 5/8. The gold shares also rallied good early but then lost all of their gains. ABX was flat, GG up 1/4, while NEM lost a buck. Volume was average. I dumped the ABX May calls for a 50% loss. I should have sold them early in the morning. I wasn't mentally ready to do what had to be done. It was a tough game for me today and I couldn't handle it. That isn't encouraging. The dollar had another huge rally today and it could signal the end of this run for the precious metals. The gold shares are oversold here as well but they are staying there. I tried my trade and it failed. Mentally I'm disappointed that I couldn't do what was necessary this morning. I will have to attempt to regroup over the weekend. The stock market needs to hold up here and I think it will. Commodities on the other hand have rolled over and there should be no playing them from the long side for a while. I'll consider doing an OEX trade next week after checking the charts over the weekend. However after another losing trade, it will be hard to find the confidence necessary to be successful. It's Friday afternoon and time for a break.

It was a selling spree today as the Dow lost 139 points on heavy volume. Advance/declines were negative. The summation index is now heading lower. We broke through the 1340 level on the S&P 500. Unless we get a sharp turnaround tomorrow, the trend will be changing to down. I expected today to be a waiting game for tomorrows employment report but that was not the case. All asset classes were liquidated today and we haven't seen that for a while. Something is going on but I haven't a clue as yet. GE lost 1/3 on average volume. We're still in a trading range here. Gold got clobbered again as the US dollar had a sharp rally from oversold levels. The dollar rally probably contributed to the stock market decline as well. Gold lost over $30 and another $10 in the aftermarket. The XAU fell 7 1/8. ABX off 1 1/4, GG down 2 and NEM fell 1 3/4. Volume was good. My ABX May calls took a hit but not as much as expected, which is puzzling. We've decisively broken down through the 200 day moving average. This trade needs to be exited tomorrow. If we get a weak employment report that might provide a pop for the precious metal. That would be the time to bail out of this loser. We'll see. Mentally I'm feeling OK. Todays market action wasn't expected by me. We are getting short term oversold on the stock indices but that may not mean anything if this is the start of something big. I certainly don't know. The transports were higher today and that means that there is a chance that today was a one day wonder. However the transports could have been reacting to the huge drop in oil today. Time will tell.

Weakness as expected with the Dow down 84 points on good volume. Advance/declines were over 2 to 1 negative. The S&P 500 broke resistance at 1340 last week. Today we snapped back to that level. The next technical expectation would be a move back to the recent highs or above. That is what I would expect. If we break down from here that would change the situation and a new scenario would be expected. Stay tuned. Employment report out on Friday and that should be a catalyst one way or the other. GE fell 1/3 on average volume. GE is right at its 50 day moving average. We'll see if it holds. Gold got pummeled again, down $25. The XAU lost 1 1/3. The gold shares were mixed, with ABX off 1/2, GG fell 3/8 and NEM was up 1/4. Volume was good here. My open order for the ABX May calls was filled this morning. Had I waited another hour, I could have gotten them cheaper. But you never know actually what you will do under market conditions until it happens. Fortunately the options are at the price I purchased them. This is supposed to be a short term trade and I hope I keep it that way. ABX is trying to hold at its 200 day moving average. The Gold/XAU ratio is still at a buy signal. I do feel that this trade has a chance to work. We'll see. The dollar didn't move much today and has been moving sideways. Still very oversold here. Mentally I feel OK, slept well enough. So another trade is on and I feel like this one at least has a chance. The entry could have been much better. I'll have to try and time the exit properly. I don't think if we get some upside in ABX that it is the beginning of a sustained move higher. A base would most likely have to form for a sustained move to happen. The stock indices should hold in here and move sideways to higher if my prognosis is correct. Tomorrow should be a holding pattern waiting for Friday. We'll see what happens.

The Dow bounced around today but ended the session flat. Volume was good today, however the advance/declines were over 2 to 1 negative. Once again the overall market was weaker than the Dow. The dip today was bought and that fits into my market view at the moment. However it is never a good thing when everyone thinks the same thing. I still feel we'll be seeing higher stock prices though. GE was up 16 cents on light volume. Moving sideways for now. Gold lost $16 and the XAU fell 5 1/3. Money is coming out of the precious metal. ABX down a point, GG off 1 1/2 and NEM dropped 1 1/3. Volume was pretty good. I did place an order for some ABX May calls. This will be a short term trade if the order is filled. Oversold on ABX and we are at the 200 day moving average. I'm leaving the order in overnight. There is always the chance that we will simply break the 200 day average and continue heading lower. That will be the sign that this trade isn't going to work. The US dollar was up a bit but not a lot. Very oversold there and a bounce can be expected. But that has been the case for several days now. We'll see. Mentally I'm feeling OK. The stock indices were dropping pretty good during the day but came back to pare their losses. Still overbought here but in up trends that condition can last a while. Gold has begun to drop and it may have to do with the end of the Fed policy of easy money. That would cause the US dollar to rise and would not be supportive for gold. I think Fridays employment report could be even more important than usual. We'll see on that. Silver is crashing on a daily basis at the moment from its parabolic rise. That won't be positive for gold either. However the Gold/XAU ratio signal just keeps getting stronger on the buy side. That's why I'm willing to step up and try the ABX trade here. We'll see what happens.

It was a one day reversal to the downside for the Dow today as we opened higher and closed lower. The Dow fell 3 points on light volume. Advance/declines were negative. I expect a bit of weakness here to alleviate the short term overbought condition but I still think we are headed higher. Osama Bin Laden was killed over the weekend and that was the catalyst for the strong open. However we could not hold on to the gains. The employment report on Friday holds the key to this week I believe. However we have 3 more days to get there. GE was flat on light volume. Nothing doing there regarding a trade for now. Gold was flat on the day after opening much lower. But we sold off $10 in the aftermarket. The XAU lost 6 3/4. ABX fell 1 1/2, GG dropped 3 and NEM lost 1 1/3. It could be that everyone is heading towards the exits here for gold. However the Gold/XAU ratio is still flashing a buy signal and it is stronger than last week. The dollar was a touch lower today but remains very oversold. I am still considering the ABX May calls but will have to get the price that I want. I'm considering putting in an overnight order. We are now short term oversold on the gold shares. But that doesn't mean that they cannot go lower. Mentally I'm feeling a bit tired, did not sleep well. I believe that the Dow is due for a pause here but I've been wrong a lot lately. Any pullback can still be bought, in my opinion. I'm going to look at the ABX May calls for a short term trade. Not exactly sold on this though. The overall market was weaker than the Dow today. We'll see if this carries through for tomorrow.

Another day, another gain as the Dow gained 47 points. Advance/declines were over 2 to 1 positive and the volume was light. It was a good week and a good month. There is nothing to stop the market from going higher. I believe pullbacks, if we get any, will be bought. We should see some type of pause next week as we are very overbought short term. We'll see. GE lost 15 cents on light volume. Perhaps there will be a chance to try the May calls here. I'll check the charts over the weekend here. Gold continues its ascent, up $25 today. It is going parabolic in my view. The XAU gained 1 7/8. ABX up 1/3, GG up 3/4 and NEM actually lost a bit. That is the problem that I am having here with the gold shares. Gold itself is powering to record highs and the gold shares are lagging badly. Something has to give. However the Gold/XAU ratio is still at a buy signal and it is getting even stronger. This is another thing that I will have to take a closer look at this weekend. The dollar was a bit weaker today. Very oversold short and medium term for the US dollar. Any turnaround here will not be good for gold. But it hasn't happened yet. Mentally I'm feeling OK. April was a very good month for the stock indices and for gold. There's still 3 weeks left in the May option cycle. Will the markets continue higher into expiration? Time will tell. There is nothing to stop the upward momentum at the moment. I'm going to go over things this weekend and try to come up with a game plan for next week. For now it's Friday afternoon and time for a break.

Higher we go as the Dow gained 72 points on good volume. Advance/declines were positive. GDP was a bit better than expected. Nothing has changed. The trend is up. GE was little changed on light volume. No trades there for now. Gold was up $14 and more in the aftermarket. It is starting to look like we are going to go parabolic there as well. The XAU lost 1 2/3. The Gold/XAU ratio is just about at another buy signal. ABX, GG and NEM all had fractional losses on average volume. I'm leaving in the May ABX call order. I did adjust the price down. Not sure if I will leave this open for the weekend. The dollar is deeply oversold and staying there for now. The dollar is due to bounce and that could be the optimum time for the gold share calls. It would have to be a very short term trade. There is also the possibility that the US dollar simply remains oversold. I am going with the Gold/XAU buy signal. We'll see if it holds up. Mentally I'm doing OK. Summation index moving higher and the stock indices continue moving up. The Dow transports are approaching all time highs. This bodes well for the overall market going forward. Look to buy calls would be my advice for now. Don't fight the advance. The market knows more than you or I do.

The Fed and Bernanke came and went. We broke above resistance yesterday and the trend is going to be upwards for the near future. The Dow gained 95 points on average volume. Advance/declines were 2 to 1 positive. Summation index going higher. All systems are go for higher prices. The Fed said nothing new. It didn't matter, the stock indices are in rally mode. We'll see how high this move takes us. GE gained 1/2 on good volume. The calls here should have been purchased Monday or Tuesday. It doesn't do any good to look in the rear view mirror. Gold rallied as well, up $13 on the futures and that much again in the aftermarket. The XAU gained 4. ABX and GG were up 2/3, while NEM rose 1 1/8. Volume was good. The gold shares were lower early in the day. We actually got a buy signal on the Gold/XAU ratio. I did place an order for some May ABX calls but I was too late. I adjusted the order and left it in overnight. Yesterday I stated that I would not be looking to try the gold share calls at this time. Things have changed. Gold is going parabolic at this stage it seems to me. If I can get the price I want on these calls, I'm willing to take the risk. The US dollar got pounded today and that helped gold and the stock market. The dollar is in an area where previously we would have seen a short term rally. However we broke down instead. This is saying that the dollar market is even weaker than it looks. That should support the price of gold here. It is also fuel for the stock indices which have broken out of resistance. The trends are up and calls are the only game in town at this point in time. Mentally I'm a bit tired, did not sleep well. So I'm ready to try another trade here and we'll see what happens. It could be that we are at the end of these up moves as well but I really don't think so. The stock market is short term overbought. However any pullbacks can be purchased in my opinion. The daily chart on ABX actually shows the technicals more oversold due to the takeover bid sell off. So we'll see what happens. GDP tomorrow and the end of the month on Friday. Should be interesting.

We broke the resistance to the upside as the Dow gained 115 points on good volume. Advance/declines were almost 3 to 1 positive. We can expect higher prices going forward although there could be a retest of the breakout point. If this does occur, it will be a chance to purchase some May index calls. We'll see if that happens. Summation index moving higher. The S&P 500 is solidly through the 1335 to 1440 level. Fed announcement tomorrow. GE was up 1/4 on average volume. I'm still considering the May calls here. Not sure if that is the proper trade here. Gold lost $5 as it was actually down for a change. The XAU dropped 2 1/8. ABX led the way down again, off 1 2/3 on heavy volume. GG dropped 2/3 and NEM was flat. Volume was light in those issues. The US dollar continues weaker. I'm not sure trading the gold share calls is the way to go here. Still overbought on these issues with the exception of ABX. Maybe gold rallies tomorrow on an accommodating Fed. I'm not going to take any chances there though. Mentally I'm doing OK. So we got the expected breakout and I do believe higher prices are in the offing. Short term overbought though but that doesn't mean we can't stay that way. I think I will attempt the OEX May calls if we get a pullback. Let's see what the Fed does tomorrow and go from there.

It was kind of a not much going on type of day following a long weekend as the Dow lost 26 points on light volume. Advance/declines were negative. We are taking a pause here at the 1335-1340 level in the S&P 500. My feeling now is that we will break through to new recovery highs soon. But I could be wrong and often am. We've got the Fed meeting this week. That will probably be a catalyst for market movement. 1st quarter GDP and plenty of other economic data as well. So things could get interesting. End of the month as well. GE was flat as well today on average volume. Perhaps the earnings news has been digested by now. I would like to have the guts to try the May calls here. If the S&P does breakout, GE should follow higher. In theory of course. We'll see. Gold was up $5 on the futures today for yet another record high. The XAU dropped 5 2/3 though. Most of this was due to ABX, which fell 3 3/4 on extremely heavy volume. ABX is planning a takeover of another company and the street did not like it. Hence the risk in individual issues. However if you own the puts, things are looking good. GG fell 5/8 and NEM was off 1 3/8. Both on average volume. I think the gold rally is getting long in the tooth but it continues. Overbought and we are due for some type of pullback. Perhaps the Fed announcement on Wednesday will cause some downside. That's a guess, as usual. The dollar remains deeply oversold on a daily and weekly basis. That won't last forever. Mentally I'm feeling OK. 4 weeks to go for the May option cycle. That should give me enough time to figure out some type of trade. I may try the OEX calls again if we get some backing and filling here. I'm going to lay off the gold calls for now because we are so overbought. GE is back on my radar screen and I would look for the May 20 calls there as the contract to trade. If we get a breakout to the upside on the S&P 500, that could be the next trade for me.

The Dow gained 52 points today to end the shortened week. The advance/declines were over 2 to 1 positive. Volume was light. We are right at resistance of 1340 for the S&P 500. I believe that we will break through in the very near future. The summation index has turned back to the upside. GE lost 45 cents on heavy volume. The street did not like the earnings report. This could be a possible long trade now that the earnings are out of the way. Gold tacked on another $5 today to new record highs. The XAU gained 3 points. ABX and GG rose 3/4, while NEM added 3/8. NEM came out with earnings today but it seemed to be a non-event. ABX is now over $55 but the volume was nothing special. I don't think this is a valid breakout yet. We'll see about next week. The dollar continued lower today and closed the week negative. If it continues lower, gold should move higher. Mentally I'm feeling OK. We now have a 3 day weekend to ponder things. I'll go over the charts and try to come up with a game plan for the May option cycle. All signs are pointing up for the stock indices and commodities. I will have to try and find something to take advantage. But for now it's time for a break.

The stock indices exploded to the upside, with the Dow gaining 186 points on good volume. Advance/declines were over 4 to 1 positive. We are on our way to new recovery highs. Earnings will be the catalyst. It appears that the market got rid of whatever sellers were left on Monday. The summation index should start to turn around here. Look for calls on pullbacks. GE was up 13 cents ahead of tomorrows earnings. Volume was average. I'd expect GE to take off to the upside on its earnings. We'll see. Gold gained $4 today and a bit more in the aftermarket. The XAU was up 2 1/3. ABX gained 5/8, while GG and NEM tacked on 1/4. Volume was light. Would have liked to have seen a bigger move to the upside in the gold shares today considering the US dollar got crushed. But I suppose money is being spread out into the stock market. The daily candlestick charts actually don't look too good for the gold shares after today. We'll have to see what transpires tomorrow. ABX is on the threshold of breaking the all important $55 level. Mentally I'm feeling OK. The stock indices have taken their cue so far this week from the US dollar. When the dollar rose on Monday, stocks tanked. Now that the dollar has reversed to the downside, the stock indices have taken off to the upside. The markets obviously know something that I don't. It's a holiday shortened week so tomorrow will be the end of the trading for the US markets. There is also an extra week on the May option cycle. Apple reported after the bell and beat estimates handily. It should mean another upside day tomorrow.

We moved higher today as the Dow gained 65 points on average volume. Advance/declines were 2 to 1 positive. Moving off of oversold levels here. Perhaps we are sold out for the time being. Summation index still heading lower though. The Dow for now has held above the 50 day moving average. There is a chance that this could prove to be the beginning of a move to new recovery highs above 1340 on the S&P 500. I don't know. We will have to see how the rest of the week unfolds. GE was up 30 cents on good volume. Earnings are due on Thursday. Moving off of an oversold condition here as well. Gold gained a couple bucks today and touched $1500 for the first time. The XAU rose 3 3/4. ABX and NEM gained 3/4, while GG added almost a buck. Volume was light. The dollar reversed yesterdays strong gain. Not sure exactly what to make of that. I would like to own some ABX calls as we near the breakout level of $55. Once we clear that area, it is up, up and away for that issue in my opinion. ABX is currently at 54 1/4. It is something that I am looking at. Mentally I'm doing OK. The stock indices are holding up rather well here after Mondays very weak open. I think that fact that we haven't completely unraveled says something. The technicals are oversold and perhaps this is the beginning of something to the upside. That's a guess as usual and lately my guesses have been expensive. We'll see what happens tomorrow and go from there.

A gap to the downside to start the shortened week as the Dow lost 140 points on average volume. The advance/declines were almost 4 to 1 negative. We were down about 250 at the worst moment of the day. A possible downgrade of US debt was todays culprit for the decline. Summation index heading lower. We are very oversold here. The so-called bounces have been anemic. The S&P 500 is trying to hold the 1300 level. We'll see. GE was flat on the day after being down early. Volume was better than average. No trades here for now. Gold was up $7 on the futures and a bit more in the aftermarket. The XAU lost 2 points. The gold shares were mixed with fractional moves one way or the other on better volume. The gold shares too, fell early and then made a comeback during the day. The Gold/XAU ratio is almost back at a buy signal. This despite the dollar having a pretty good day. Why the dollar would rally on bad news concerning the US debt at first glance doesn't make any sense. However it could have been just short covering, as the worst news is now out. That's all a guess as usual. Gold is at all time highs. I might try the May gold share calls if the Gold/XAU signal does happen. But it's risky. Gold is overbought here but that doesn't mean it can't stay that way for a while. Mentally I'm doing OK. Trying to put last week behind me. I have a confidence void at the moment. Losing trades with poor execution will do that. I've got to move on though. I would look for the stock indices to at least stabilize for the rest of the week. If not, then we'll have a better idea of what is going on here.

We got a weak bounce today as the Dow gained 56 points on expiration Friday. Volume was average and the advance/declines were positive. The OEX trade was a disaster. I had a chance to cut the loss at 50% and I canceled the order to give it some more time. Mistake. It ended up being a 95% loss and broke one of the risk parameter rules set in place at the beginning of the year. I did not have the discipline to execute the correct moves under pressure. This is an amateur mistake. There are no excuses, I just wasn't good enough. So that was 2 horrible short term trades within a week. I am no good at short term deals. I should not even attempt them. Getting back to the markets, I'm about to change my mind on new recovery highs. The summation index continues lower and we should have had a decent bounce by now. It hasn't happened. GE was higher early and closed little changed. Volume was average. No trades in the works there. Gold was up 14 bucks to a new all time high. However the XAU fell 1/2. ABX, GG and NEM had slight fractional moves one way or the other on light volume. The dollar gained a bit today. Not sure why the gold shares couldn't follow gold today. It is something to keep an eye on. I would like to try the May gold share calls but after this week I'll probably be on the sidelines for a while. Mentally I'm discouraged. Both of my trades this week were losers from the start. Obviously that isn't good. The fact that I didn't take small losses when I should have just compounds the negatives. The money matters but not as much as the confidence factor. If you can't perform when necessary, you don't have a chance. So now I'll be gun shy for a while since I certainly don't have a handle on what the market is doing at the moment. Lousy trades just don't do anything for you at this point. It's April and although the year started out very positive for me, it seems like I am back to square one. I'll check the charts over the weekend and try to get my head together. It won't be easy. For now it's Friday afternoon and time for a break.

The Dow had a one day reversal to the upside as we gapped lower on the open and came all the way back for a gain of 14 points. The advance/declines were positive, while the volume was average. My OEX calls got killed in the morning but made somewhat of a comeback during the day along with the overall market. They are in the red though with a day to go. I probably should have just sold them at the close and taken that loss today. But we are still oversold and the bounce is not happening. That could mean bigger trouble for the indices. Google reported poor earnings after the bell and that doesn't bode well for the open tomorrow. An oversold market that doesn't show some upside is dangerous. The summation index continues lower. GE was flat today on light volume. We are right at the $20 strike price. Gold had a good day on the weaker dollar. The precious metal gained $17. The XAU rose 2 1/2. ABX, GG and NEM all gained around 1 1/4 on OK volume. The move in the gold shares today is what I was looking for in the Monday ABX call trade. Timing is everything as always. I don't think that I'll chase the gold shares here. The weekly charts are just about overbought on the technicals. But we'll see. Mentally I'm doing OK. I almost sold the OEX calls at the close today as well after I heard the bad news on Google. With only one day to go, the odds of this trade turning a profit are not good. But I didn't dump them and I'll probably feel the pain tomorrow. More inflation data out tomorrow and todays report wasn't good. Plus option expiration. We'll see how it goes.

We opened higher but could not sustain anything to the upside as the Dow gained only 7 points on the day. Volume was average and the advance/declines were positive. Summation index is heading lower. I did put in an order for some April OEX calls and it was filled. The options are right at where I purchased them. Tomorrows open will be the key as we are oversold and due for a bounce in my opinion. There are only 2 trading sessions left for the April option cycle, so obviously this will be a very short term trade. We'll see what happens. GE was basically flat today on light volume. Gold gained a couple of bucks while the XAU fell 2 points. ABX and GG were both off about 1/4. NEM dropped 7/8. Volume was light. The dollar gained a touch today. I still like the gold shares going forward here. Perhaps there will be another attempt at the calls in the May option cycle for me. The weekly candlestick charts will not look bullish though if prices stay where they are or decline further in the next 2 days. I'll be keeping an eye on it. Mentally I'm feeling OK. I decided to take the chance on the OEX trade since there is a short term buy signal in place on one of my technical indicators. It may or may not pan out. I do feel good about being able to put the lousy ABX trade behind me and move on to the next perceived opportunity. Inflation data and initial claims are out tomorrow. That should be the early key to market direction. I'll take it from there.

It was a downer Tuesday as the Dow lost 117 points on better volume. Advance/declines were almost 3 to 1 negative. I'm still a believer that we will see new recovery highs in the S&P 500. I think that any decline tomorrow can be bought for a short term trade before Fridays expiration. I would like to have the confidence to try the OEX calls tomorrow. That remains to be seen. The summation index has rolled over and is trending down. So caution is advised here also. GE lost 17 cents on average volume. We are right around the $20 area here. I am not going to try anything there. Gold lost $15 and the XAU fell 4 points. The gold shares were mixed, with ABX off 3/4, GG down 1/2 and NEM up 1/3. Volume was a little less than average. The dollar was a bit lower today and it didn't help gold. I sold the ABX calls for about an 85% loss. That was a horrible trade that should not have even been done. It was a loser from the start. There was no solid technical basis to even put it on. I think I was just anxious to do something before the April option cycle ended. It was stupid and I paid for it. Now there is a legitimate chance for an OEX bounce trade and I don't know if I can pull it off after this loser. I don't want to seem like I am doing the OEX trade to try and make back what I just lost on the ABX trade. Mentally I'm in a tough spot. I do believe that weakness can be bought tomorrow but I don't know if I can pull it off. I could be wrong as well. There are only 3 days left for the April option cycle. There is also a ton of data coming out in the next 3 days. Weakness tomorrow does give a short term buy signal on one of my technical indicators. So I will think about all this tonight and go from there. It would not help to compound the ABX loss with another right away. However a winning trade would be a step in the right direction.

We bounced around today and ended pretty much flat as the Dow gained 1 point on light volume. The overall market was weaker than the Dow, with the advance/declines over 2 to 1 negative. I think we are perhaps setting up for a trade to the long side at the middle to end of the week. I'll be looking at the OEX calls if I decide to give it a shot. Plenty of economic data out this week. So we'll see what happens. GE was flat on the day with very light volume. I would try the April 20 calls here this week if I thought GE could make a decent upside move. Not sure and there isn't much time left on the options. Gold was off $6 today and more in the aftermarket. The XAU lost 6 1/4. ABX down 1 1/4, GG and NEM fell a buck. Volume was light. I did try the ABX April calls today. Of course now I wish that I didn't. The position is down almost 50% already. Can ABX make a comeback this week? Stranger things have happened but I really need to cut the loss here. It is the kind of trade that was risky, didn't work from the start and now needs to be let go. I would need to see some type of stunning reversal tomorrow. Won't happen. Not a lot of money at risk here but it will probably be a loser none the less. Mentally I'm feeling OK. I'm thinking about getting some OEX calls for later this week but the risk there would be high as well. However the market is getting oversold here. Plus it's expiration week which usually has a positive bias. I'll deal with the ABX trade and go from there. I probably need to be reminded that the short term trades are not my strong suit. I'll ponder things tonight to come up with the game plan for the rest of the week.

The Dow fell 29 points today on the brink of a US government shutdown over the budget. We were lower but came back in the final hour. Volume was light and the advance/declines were 2 to 1 negative. The budget fiasco is really much ado about nothing in my opinion. A budget will eventually be passed and this too will be forgotten. But it gives an excuse to sell stocks and the US dollar as well. Todays action could turn the summation index lower. That is something to keep an eye on. GE lost 16 cents on average volume. I'm going to have to pass on the April 20 calls there. There's only one week to go for the options. Perhaps I'll change my mind over the weekend. Gold had another good day, up $15. The XAU gained 3 points. ABX up 2/3, GG rose 1 1/4 but NEM fell 1/3. Volume was good. GG remains the leader here to the upside. We are very overbought here but I still might try the ABX calls next week. I did cancel the open order that I had for them today. ABX is on the verge of a breakout if it can get above $55. However the risk is very high since there is so little time left in the April options. The dollar got pounded again today and that was the reason for the rise in gold in my opinion. The US dollar is pretty oversold here as well. So there is plenty to think about over the weekend. Mentally I'm doing OK. The major stock indices are moving sideways at resistance. The transports have rolled over here and that could be the harbinger of lower prices near term. However I do think that we will be breaking through the near term resistance to new recovery highs. I could be wrong and often am. One week to go on the April options so if a trade is attempted it will have to work in a hurry. I'm leaning towards the ABX calls for now. I'll be going over the charts this weekend in hopes of finding something meaningful for next week. For now it's time for a break.

Another large earthquake in Japan sent the Dow lower early but the market came back to just post a loss of 17 points. Volume was average and the advance/declines were negative. We've been moving sideways for a week. I expect that we'll break out to the upside sometime before expiration but that's a guess as usual. However the trend remains up until further notice. GE lost 20 cents on average volume. The April calls that I was looking at here got cheaper but I think that I will step aside from this trade. Of course that could change tomorrow. Gold didn't do much today and the XAU gained a point. ABX lost 3/8, GG up 1/3 and NEM gained 1 7/8. Volume was average. I lowered my entry price for the ABX April calls to take off a little more risk with only 6 days to go. I still expect ABX to try and break through the $55 level. However the timing is in question. None the less, I'm going to try and give this trade a go. The dollar closed little changed today. Mentally I'm doing OK. Time is running out for the April option cycle. Things get a bit more risky and dynamic. It is the nature of the options game. I'm still going to try and put on a trade here but nothing is set in stone.

Grinding higher as the Dow gained 32 points on average volume. Advance/declines were positive. Summation index continues higher. I still expect upside into the expiration next week. Nothing has changed to derail that. The market is overbought, staying there and that is the tune for now. GE was up 1/4 on OK volume. I canceled the open order for the April GE calls. 7 days to go and the price I wanted for the options isn't going to happen. I also don't think that GE has the volatility at the moment for this trade now. I do still believe that GE will see a higher price near term. Gold gained another $6 today and a few more in the aftermarket. The XAU fell 1/3. ABX, GG and NEM were mixed with fractional moves. Volume was good here. I'm leaving in the open order for the April ABX calls. There is volatility in the gold shares and plenty of interest at the moment. I'm not sure that I will hold this over the weekend though. We'll see what transpires between now and then. The dollar was weaker today and could be starting another leg down. Time will tell on that. Mentally I'm a bit tired, did not sleep well. We are right at resistance for the S&P 500. I do think that we will break through and set new recovery highs soon. Before expiration is my guess. There may be an OEX trade to take advantage of that, if we see some weakness first. That would be the ideal scenario.

Another lackluster session for the stock indices as the Dow lost 6 points on light volume. Advance/declines were positive. We are moving sideways for now but I believe that we will be heading back to the upside by the end of the week. Not a lot of economic data out this week. I am looking to purchase some calls before expiration. GE lost 20 cents on light volume. I have an open order in for some April 20 calls. It might get filled if GE sees some more weakness near term. We broke the daily downtrend line here a few days ago. The next technical expectation is a return towards that line before we head higher once again. We'll see if it pans out. Gold broke out to new highs today, up $20 and $5 more in the aftermarket. The XAU soared 9 1/3. ABX up 2 7/8, GG up 3 and NEM up 2 1/3. Volume increased on the breakout. This I think is a valid break to the upside and you can hop aboard for the ride. I also have an open order in for some April ABX calls. I moved to a higher strike price than I was looking at. This order may not be filled as it is entirely possible that we simply move straight up from here. However I do feel that this move is worth chasing. The gold shares moved up around 5% in just one day. That must be respected. We'll see what happens. The dollar fell just a touch today. Mentally I'm feeling OK. So gold is on the move and I am not taking advantage of it once again. However the technicals showed nothing to anticipate this breakout so I can't feel too bad about missing it. There is always a chance that I'll still be able to salvage something if the ABX order gets filled. Meanwhile the stock indices are taking a breather here from going straight up. I do feel that higher prices are in the near future, before the April expiration next week. I'll try to take advantage of that with GE. We'll see what happens.

A quiet start to the week as the Dow gained 23 points on light volume. Advance/declines were positive. The indices opened higher and meandered throughout the day. Nothing has changed, the trend is up. GE gained 19 cents on the day but was higher early. Volume was light. I would still like to try the April 20 calls here if they drop in price in the next few days. We'll see. Gold gained $4 today and the XAU was up a point. ABX, GG and NEM were flat or had fractional gains. Volume light as usual here. The dollar didn't do much and was marginally higher on the day. The gold shares are overbought and if we get some pullback I'll try the May calls. That is the game plan for now. Mentally I'm feeling OK. Nothing has changed with regards to my trading ideas. GE would be the first trade followed by something with ABX or GG. GE would be very short term, with only 9 days left in the April option cycle. So I am remaining patient for now. I am not going to try and press anything here. We'll see if we get any decent movement in the markets tomorrow.

The employment report came and went. The Dow continues higher, up another 57 points. We were up almost 100 during the trading session. The advance/declines were over 2 to 1 positive and volume was average. Overbought, staying that way and it's back to the same old broken record. The indices are going higher. Any type of pullback can be bought. You cannot argue with the market. GE was up about 1/3 and broke through the daily downtrend line. I'll be looking for some April calls here if we get some decline. Might not happen. I have some interest in the April 20 calls if I get a chance. We'll see. Gold lost around $10 today and the XAU fell 1 3/4. The gold shares had fractional losses on the day on the usual light volume. Gold itself had a gap down at the open and steadily came back all day. It seemed to follow the US dollar, which was higher early and closed the day unchanged. With the decent jobs report it would have made more sense for some type of dollar rally today. Didn't happen. I'd still like to try some gold share calls for May however we are still overbought there. Again, if we get some type of pullback here as well, I will attempt to put on a trade. Mentally I'm feeling OK. Another good week for the stock indices as the Japan debacle seems to fade into the distance. Money is finding a home in stocks. The trend is up and there is no need to fight it. 2 weeks to go in the April option cycle. I'll hopefully be able to take advantage of something on the long side. For now though it's Friday afternoon and time for a rest.