It was a market meltdown as the Dow plummeted 512 points on very heavy volume. The advance/declines were blown out to the downside. Summation index in free fall. Oversold, staying there and anything can happen at this point. Yesterdays attempt at a bottom failed drastically. I'd like to say that I know when this will all end but I certainly don't. The employment report is out tomorrow and I wouldn't expect any good news there. Perhaps we can get a blow-off move down and start to recover. There will be a short covering rally at some point but the timing is in question. Stock markets around the world collapsed overnight. Probably will see more of the same tonight. Maybe we could see some support at the Dows 200 day weekly moving average but it's still 500 points from here. Stay tuned. GE lost a buck on extreme volume as well. I'm looking at getting some GE calls for the longer term. Meaning next January or March. However in these market conditions I think that it would be better to let some type of bottom form in GE. That may take a few weeks or longer. I'll keep an eye on it and decide the best course of action over the weekend. Gold hit a new all time high before pulling back during the day. It fell by $6 and a bit more in the aftermarket. The US dollar was very strong today in the flight to safety. The XAU got clobbered, down 12 2/3. ABX off 2 7/8, GG lost 2 7/8 and NEM fell 2 2/3. Volume was very heavy here as well. I did purchase some ABX September calls. However if the market continues its free fall, the gold shares will follow suit. I could have canceled the order but I wanted to do this trade as a back-up to missing out on the OEX puts. ABX isn't extremely oversold here but it is enough for me to give it a try. I think once things settle down, gold will continue to attract capital as a flight to safety since the fear level is now elevated. My thinking is that perhaps gold and the dollar will rise in tandem as they did the last time we had a major market collapse. We'll see. Mentally I'm feeling OK but a bit tired. Could have slept more. Today was interesting but tomorrow could even be more so. Maybe we will see the panic low. There will be opportunities but it isn't easy trying to catch a falling knife. I still don't sense a gripping fear in the marketplace but that could change rapidly. We are very deeply oversold so when the bounce happens, it will be huge. Hasn't happened yet. We'll see what tomorrow brings but be ready for anything.

We finally got some type of bounce from an extremely oversold condition. The Dow gained 29 points on good volume. The advance/declines were about even. The daily candlestick chart on the S&P 500 looks like it has formed a hammer here. That could lead to some more near term gains. We still have the employment report on Friday to deal with. I think that the decline may be done for now but that doesn't mean that it's over. GE gained 1/4 on good volume. No trades here for now. Gold soared another $20 as the US dollar fell. The XAU gained 1 1/2. ABX and GG each rose about 1/2 while NEM gained a buck. Volume was good again. The money continues to flow into gold related assets. I placed an order for some September ABX calls. If we get some pullback then this order could get filled. Yesterday there was a lot of volume in the September ABX calls. Today the same options open interest expanded. The last time that I saw this, ABX had a nice rally. We'll see. Mentally I'm feeling OK. The summation index continues to decline at a rapid clip. We are in the danger zone for a crash unless we turn around quickly. However the McClellan oscillator is at a point where previous oversold rallies have started. It's a tough call either way. I'm still leaning towards getting some OEX puts on this bounce. Time will tell.

The Dow got clobbered today as it fell 265 points on heavy volume. The advance/declines were over 4 to 1 negative. Summation index gapping down. Very oversold and staying there. That's dangerous. Possible crash coming or we are in the middle of it. Debt deal is done and the markets don't care. I never did get a chance to get some OEX puts. I think it's too late now unless we see a 3 to 4 day rally. No hint of that coming. Everyone now fears the employment report on Friday. Might be a chance to go the other way but I wouldn't be betting on it. GE was down 3/4 on good volume. Support has been broken. GE led the way down and it is something to keep am eye on for when we eventually head back up. Gold had a great day, up $22 on the futures and almost that much again in the aftermarket. The XAU gained 1 1/4 in a really down market. ABX, GG and NEM all had fractional gains on OK volume. The dollar was a bit higher today. The Gold/XAU ratio is solidly on a buy and getting stronger. I think that I'm going to try the gold share calls again. That will have to be my back up plan after missing the OEX puts. We should probably see some downside follow through in the stock indices tomorrow and perhaps that will take the gold shares along for the ride. I'm looking at ABX again. We'll see. Mentally I'm a bit frustrated on the OEX puts. I don't think that I'll get another chance for them. I've got to forget about that and move on. However we could be on the brink of some type of market meltdown. Opportunities will present themselves if that happens. 8 days to the downside for the Dow. Should have seen some type of sustained bounce but haven't. Gold is soaring but the gold shares lag. This summer has been anything but quiet. I'm going to mull things over tonight and decide what to do in the morning.

A US debt deal is imminent but the Dow still can't rally. We lost 10 points today on good volume. The advance/declines were about even. The market opened much higher by over 100 points but could not hold on. We were also lower by 100 points during the day as well. Oversold and staying there. I still believe that we will see some type of bounce soon and that bounce can be shorted. I would like to own some OEX puts before Fridays employment report. We'll see. GE was flat today after some wild swings on good volume. It just about mirrored the overall market. No trades there. Gold lost about $10 on the futures while the US dollar gained some ground. The XAU was up 1 1/8 after being higher early. ABX up 1/2, GG higher by 1/8 and NEM lost 1/4. Volume was light. I may try the September ABX calls if we see a pullback in gold here. I would think that gold would lose some of its luster on a debt deal agreement. If the deal doesn't pass, we could see a pop to the upside on fear. I do however believe a deal will happen. Mentally I'm feeling OK. I'm thinking that today we may have set a near term low that will be broken later on in the August option cycle. We are very oversold and a relief rally should appear. I'll be keeping an eye on the OEX puts. That has been the story here for at least a week and it remains so. We'll see what tomorrow brings.

The Dow is still being held hostage by the US debt situation as it fell another 96 points today. The advance/declines were 2 to 1 negative and the volume was good. Very oversold now and a decent bounce will happen at some point next week. I still think the bounce can be shorted. The summation index is heading lower. It is now just a matter of getting done with the debt deal and going from there. Probably want to have some OEX puts before next Fridays employment report. We'll see. GE was down 1/3 on good volume. We are right at the lower Bollinger band on the weekly charts. It either holds or we go into a waterfall effect. Gold continues to attract money, up $15 on the futures. The US dollar was weaker. However the XAU fell 4 1/3. ABX down about 2/3, GG lost 1 1/4 and NEM dropped 2 1/8. Volume was good. The Gold/XAU ration is solidly on a buy but that hasn't meant anything lately. Perhaps the September gold share calls will be the place to be. I'd wait for a base to build here though. Gold could sell off once the debt problem subsides. Mentally I'm feeling tired. I'm also tired of this debt debacle. It will get solved but it has been strung out to no end. If I had the confidence, I'd have bought some OEX August calls today. It wasn't a good week for me with the losing GG trade. There's still 3 weeks in the August option cycle though. However the increased volatility has really blown out the option premiums. The idea for now is to wait for the bounce and then get some OEX puts. I do not think we will be simply moving back straight up. I could be wrong and often am. Right now it's the last Friday in July and time for a break.

Tried to rally but not just yet as the Dow lost 62 points on average volume. The advance/declines were negative. We opened higher and were up over 80 points but could not hold the gains. Oversold here and due for some type of bounce but the market is hostage to the US debt news at this point. I still will be getting some OEX puts if we bounce. Summation index heading lower. GE was higher early and couldn't hold its gains as well to finish the day flat. Volume was light. Gold lost a buck while the XAU fell 2 1/4. The dollar was a bit higher today. ABX lost 1/3, GG dropped 1 7/8 while NEM gained 3/8. My GG August calls got clobbered. The earnings were great but the guidance was lousy going forward. It was a 60% loss overnight for me. I made a mistake and I'm moving on. I still like the gold shares if we sell off some more. August and September are the 2 historically good months for the price of gold. Not oversold enough there yet though. Mentally I'm feeling tired, not enough sleep. The market is weak and what happens after a debt deal is reached will be important. We should rally pretty good because the uncertainty will be gone. But if we don't, things could get ugly. I would like to buy some OEX puts next week if the market cooperates. As for the GG trade, I probably shouldn't have tried it but hindsight is always right. My trading since the beginning of the year has been horrendous. In fact I have been in a losing funk for a year and a half. If not for a couple of decent trades early this year I would be way down again. I need to get it together and it isn't easy when confidence is low. I think I will let tomorrow pass and regroup over the weekend.

The Dow got clobbered today, down 198 points. The advance/declines were over 8 to 1 negative. I am not getting a good read on the volume. Oversold here now but that may not matter. The OEX puts were and are the way to go. It doesn't matter if we get the US debt crisis bounce and I hope that we do. That will be the entry point for the puts. The 10 day trin was way overbought and the CBOE call/put ratio was the highest it's been in a while. We are going lower. GE lost about 1/2 on good volume. It was the canary in the coal mine. No trades there still for me. Gold lost a couple bucks and has really held up rather well. The US dollar had a good day in the flight to safety. However the XAU lost 6 1/2. ABX fell 1 1/4, GG dropped 2 1/8 and NEM lost a buck. I bought some GG August calls today and that looks like a mistake. The earnings come out after the close today and that was the risk that I took. The options are already down about 15% from where I purchased them. I should probably just dump them one way or the other tomorrow. We'll see. If the earnings are decent, I'd expect some type of bounce tomorrow. Mentally I'm feeling tired. Really not happy about not owning any OEX puts here because that was the trade that I've been waiting for. Summation index is now gapping lower so you know where the trend is headed. I'll hope for a bounce and go from there. As for the GG trade, I was not going to try the gold share calls but when we were down this morning the option premiums got cheap so I gave it a shot. Plenty of time left on the August calls but I don't think this is something to hold on to. Unless we really shoot higher on good volume tomorrow. Remains to be seen. So we'll see the reaction to the earnings and go from there.

Again to the downside as the Dow lost 91 points on light volume. The advance/declines were negative. Still waiting on the US debt problem. Perhaps there won't be any time to buy the OEX puts at this point. However I still believe that there will be some type of relief rally and that will be the time to purchase the puts. We'll see. The summation index has turned around to the downside and I will take my cue from this. GE was down 40 cents on better volume. This is the canary in the coal mine. That is my opinion at the moment. No trades here but the weakness in GE portends overall weakness to come in my opinion. Gold continues to be attracting money and was up another $5 today. The XAU gained 1/3. ABX and NEM were little changed while GG lost 2/3. Volume was light. The US dollar was lower. I'm still considering the gold share calls but they would have to be purchased tomorrow before the earnings on Thursday and Friday. I'm now looking at the GG August calls. The problem is that we are still overbought on the gold shares here but if the earnings come through it won't matter. I'll decide if I want to take the risk tonight. Mentally I'm still a bit tired, did not sleep well again. The Dow has been weaker than the overall market lately and usually that means that we are in for a rally. That is one of the reasons that I am hesitating on the OEX puts. Also I believe that some kind of debt deal will be announced soon and that should lead to some buying. I could be wrong. GG announces its earnings after the bell tomorrow, so if I want to try something there, it has to be done tomorrow. Plenty to consider tonight. However I do not want to make a trade just for the sake of trading. We'll see what tomorrow brings.

We started the week off on a sour note as the Dow lost 88 points on light volume. The advance/declines were over 3 to 1 negative. I am going to have to decide if I just want to get the OEX puts right now or wait for the next minor rally. I really want to see if we get some kind of reflex rally when a US debt deal is announced. That would be the rally to short in my opinion. However the market may not wait for that as todays action could move the summation index back down again. More overbought than oversold here. Things to think about. GE was down a touch on light volume. No trades in mind here for now. Gold rose again, up $10 on the futures. The XAU lost almost 2 points though. ABX down 1/2, GG lost 2/3 and NEM fell 1/4. Volume was light. The US dollar didn't do much today. Earnings are out later this week. I'm thinking of perhaps getting some gold share calls here in the next couple of days as an earnings play. ABX is the issue that I have in mind. Not sure yet if I'm going to risk it though. Mentally I'm a bit tired, did not sleep well. So basically I'm about to attempt another trade and it will be the OEX puts or the ABX calls. I'll ponder things again tonight and go from there.

It was a mixed market today as the Dow lost 43 points today on light volume. The S&P 500 and the NASDAQ were higher though. The advance/declines were positive. The Dow was negative all day. It still has the feel of a market that wants to go higher. I still am thinking about the OEX puts for sometime next week. GE opened higher but closed lower by 1/8 on its earnings report day. Volume was heavy. I think GE may provide a clue for where we are going here with regards to the stock indices but I could be wrong. Gold rose $14 and the XAU gained 2 1/2. The dollar was higher as well. There was a bombing of government offices in Norway that probably helped the flight to safety trade today. ABX up 2/3, GG gained 1 1/8 while NEM edged higher by 1/8. Volume was light. Overbought and staying there for the gold shares. Not sure about getting the calls here. Mentally I'm doing OK. I'll have to check the charts over the weekend. We are overbought on the stock indices but not excessively. The summation index has turned back up. I have been considering getting some OEX August puts and I still am. I'll decide what to do over the weekend. For now it's Friday evening and time for a rest.

The rally has legs as the Dow gained 152 points on better volume. The advance/declines were almost 4 to 1 positive. We are getting back to overbought on the stock indices but aren't quite there yet. I am now debating on whether to purchase the OEX puts or hold off. This rally so far has thin leadership in my opinion. But that doesn't mean things won't broaden out. It's possible that we are on our way to new yearly highs in some indices. The risk of the OEX puts here isn't justified in taking a position at this time. That's my thought at the moment. GE gained 1/3 on good volume the day before the earnings report. Perhaps the market knows something we don't. If we see some good news there tomorrow it could be telling for the market. Or vice versa. Gold fell 10 bucks today and the US dollar lost ground as well. The flight to safety trade is coming off again. The XAU fell 1 1/8. The gold shares were mixed with ABX and NEM sporting fractional gains while GG dropped over a buck. Volume was average. The gold shares are overbought and I'll need to see an oversold reading before getting the calls there. We will see some movement next week on the earnings. Mentally I'm doing OK, slept well enough. Trying to figure out the proper course of action here going forward. Still plenty of time on the August option cycle with the extra week added. The market has the feel of wanting to go higher in my opinion. I could be wrong. Let's see what happens with GE tomorrow and the markets reaction to that.

The Dow lost 15 points on light volume today. The advance/declines were positive. It was a lackluster session following yesterdays huge advance. We will see if it was simply a pause before higher prices or not in the next couple of days. The summation index is trending lower but that could change with another good up day. GE was up 1/4 on light volume, moving above the 200 day moving average line. Earnings for GE are due Friday. That should be a market mover. I have no trades in mind here. Gold lost $4 on the futures and gained as much in the aftermarket. The XAU was up 1 1/4. The US dollar fell today but it really didn't do much for gold. ABX, GG and NEM were all up fractionally on light to average volume. Earnings due next week. If we get weakness soon, I'd like to try the August gold share calls. We'll see. Mentally I'm doing OK but not as focused as I need to be at the moment. That has to change before any type of trade is established. I'm still leaning towards the OEX August puts when we get overbought. We're not there yet.

We got a bounce and quite a bounce it was as the Dow gained 202 points on average volume. The advance/declines were over 3 to 1 positive. The idea has been to short any bounce and I'm still leaning that way. I am going to try and wait until we are short term overbought which would be later this week or next Monday. However being both short and medium term oversold here could mean more of some type of sustained upside move going forward. I would still like to see the rally from the US debt resolution first before purchasing some OEX puts. We'll see. GE was up 1/3 on light volume. Trying to get above the 200 day moving average. Hasn't happened yet. Gold lost a buck on the futures but was down $15 in the aftermarket. The XAU fell 1 2/3. The US dollar fell today as well. It looks like fear took a rest today. ABX off 1/2, GG lost a buck and NEM fell 1/3. Volume was average. If we work off the overbought condition here, I may try the gold share calls for August or September. However I would like to see some pullback first. One day isn't enough. Mentally I'm a bit tired, not enough sleep. Today was quite a move in the stock indices. Sometimes in down markets, rallies spring out of nowhere. That could be the case for today. Or not. There lies the dilemma from here. We'll see if we get any follow through tomorrow and go from there.

We started the week off with a whimper as the Dow lost 94 points on light volume. The advance/declines were over 4 to 1 negative. Summation index heading lower, implying that the trend is down. We are oversold here and I do expect a bounce. The fact that we made up half of todays losses makes me think that we should head back to the upside tomorrow. But who knows? I'm still looking to purchase some OEX puts if we get some positive action in the stock indices. GE was down 1/8 on light volume. Still below the 200 day moving average there. Gold continues to be the star as it set another record high today with a gain of $12 and more in the aftermarket. The US dollar was slightly higher but was up more earlier in the session. The XAU rose 2 1/2. ABX, GG and NEM all gained at least 3/4 on average volume. I'd look for the calls here as well if we get a pullback. Earnings out next week. Mentally I'm feeling OK. I suppose I'll wait for a relief rally when the US settles its debt ceiling issues within the next 2 weeks. That's the idea for now.

A mild expiration Friday as the Dow gained 42 points on average volume. The advance/declines were positive. We opened higher and spent most of the day in positive territory. Still oversold here though in my opinion. I think that we'll trend higher from here for a while but that's a guess as usual. I'm still considering the OEX August puts if I feel the opportunity presents itself. GE was off 1/8 on average volume. Still below the 200 day moving average. No trades in mind for GE. Gold was flat on the day but higher in the aftermarket as we approach $1600. The XAU rose 2 2/3. ABX, GG and NEM all had fractional gains to the upside on light volume. I think the gold shares will be going higher even though they are overbought at the moment. I may try some ABX August calls in the near future. The US dollar dropped a touch today. Again, gold had a valid breakout this week in my opinion and the trend is up. Hopefully there will be some type of pullback in order to establish a long position. Mentally I'm doing OK, slept well enough. 2 weeks left in the month of July and the summer has been anything but quiet. We'll see if that keeps up all summer. The August option cycle has an extra week on it so there is really no hurry there. I'm going to try and wait for a decent signal and go from there. If the stock indices rally back up to the recent highs, I'll be getting some OEX puts. If the gold shares pull back a bit, I'll be trying the calls there. That is the game plan at the moment. It is a beautiful summer afternoon and time to take a break.

Again we could not hold a gain as the Dow lost 54 points on average volume. The advance/declines were well over 3 to 1 negative. Still short term oversold here and I would expect something to the upside very soon. But I certainly don't know how long that would last. The US debt problem is grabbing the headlines for now. I'm quite sure this will be settled soon and that we will see some type of rally when it does. This is the rally that I'd like to get short if it happens. Otherwise we're just going to head lower here and there won't be a chance to get some August OEX puts. We'll see what happens. GE was flat today on average volume. Nothing new to report there really. Gold was up $3 but the XAU fell 1 1/2. The US dollar was flat after selling off early. ABX, GG and NEM all had fractional losses on light volume. We're overbought on the gold shares but this just may be a pause in the uptrend. Earnings will be out in a couple of weeks. Might try the August calls there but it depends on the overall market itself. However, it was a valid breakout for gold as the volume confirmed it. That must be remembered. Mentally I'm doing OK, another dentist appointment this morning. In order to be successful you've got to pay attention. Only so many interruptions can be tolerated. Expiration Friday tomorrow so we'll have to keep an eye on that. The summation index is probably heading back down after today as well. Interesting times.

We managed a gain today but it wasn't all that pretty as the Dow rose 44 points on light volume. The advance/declines were 2 to 1 positive. We were up over 150 early but could not hold the advance. I am hoping we get more of a bounce than this in order to position myself with some August OEX puts. We are short term oversold here. GE was up an 1/8 but the daily candlesticks look bearish here. Try to hang around the 200 day moving average here. Gold continued the breakout to the upside, gaining $23. The XAU rose 5 2/3. ABX and NEM gained 1 1/2, while GG added 1 2/3. Volume was good. The US dollar fell today on hints of a QE3. Will it ever stop? Probably not. The July gold share calls were the right play for this option cycle. Perhaps if we get a pullback in gold to the breakout point of this week, maybe the August calls would be correct. However if the overall market tanks it would probably take the gold shares with it. We'll see. Mentally I'm doing OK. The stock indices are acting very weak here and that is strange following such a strong up move recently. I am really not sure what to make of it. 2 days left in the July option cycle. August has an extra week on the options. I suppose I will simply let this week pass and go from there. The volatility increase lately hasn't made things any easier. I really need to be up to the task. I have an idea of what I'd like to do here so we'll see if the market cooperates.

The Dow tried to bounce today but it failed and we lost 59 points on the day. The advance/declines were negative and the volume average. Getting to short term oversold but not there yet. The idea here is to buy some August OEX puts on a bounce if we get a sustained one. Volatility remains above normal for the summer. No big news today but the fact that we couldn't hold the gains of earlier today is not a positive. GE lost about 1/4 on average volume. Just broke through the 200 day moving average to the downside. We never got near the resistance for GE and maybe that was telling for the action we're seeing now. That's a guess as usual. Gold continues to shine here and is breaking out to new highs. It gained $13 and more in the aftermarket. The XAU rose 5 1/2. The dollar was higher today as well. ABX up 1 1/8, GG climbed 2 1/8 and NEM was up a buck. Volume was good. I had a thought early in the day to buy some gold share calls but didn't do it. It looked like they were going to rally and they did. I just didn't take the risk. This looks like a valid breakout for gold and I may just want to jump on board. It will be something to think about tonight. Mentally I'm doing OK. I'm still sticking to my theme of getting some OEX puts for August but I will need to see some upside first. 5 weeks for the August options so they are are bit pricey here. Money is coming back into gold and the gold share earnings are due at the end of the month. Short term overbought here though. Plenty to ponder. I'll check the charts tonight and go from there.

A rough start to the trading week as the Dow fell 151 points on light volume. The advance/declines were over 5 to 1 negative. Back to the troubles in Europe as now Italy is the latest country to unwind. I get the feeling that this isn't going to stop anytime soon. There are only so many times you can bail people out. I'm looking at the August and September OEX puts on a bounce back if we get one. The US debt problem isn't a problem in my mind. Some type of deal will be worked out. Perhaps we'll get a rally on that. The recent up move has been spectacular in my opinion. But I don't think that it has legs now. We'll see. GE was off 1/3 on light volume. It is now back at the 200 day moving average. No trades there for now. Gold was up $7 and that much more in the aftermarket. The XAU fell 3 1/8. The US dollar put in a good day as well. The flight to safety trade has returned. ABX, GG and NEM all had fractional losses on light volume. I may also try the gold shares for August and September as well if we get to some type of oversold level. If the Gold/XAU ratio climbs above 8, I may put on a trade then as well. However it is hard to get long gold when the US dollar is rallying. We'll see. Mentally I'm doing OK. The summer continues to be overly busy and volatile. This isn't the normal course of things. I will have to make the adjustment. 4 days to go in the July option cycle and I will not be trying anything this week. That's the thought at the moment. So I will look for some type of rally back to the highs of last Thursday and purchase some OEX puts if that occurs.

Some downside action today on the weak jobs report as the Dow lost 62 points on light volume. The advance/declines were over 2 to 1 negative. We were off by 150 points in the morning. However nothing seems to be able to derail this market at the moment. It has all the signs of going higher, for whatever reasons. Working off the overbought condition for now. I would expect new yearly highs before option expiration next Friday. The market always knows more than you and me. GE was off 1/3 on better volume. I would say that it's a warning sign for the stock indices here but GE has been lagging and not leading. Back below the 50 day moving average on the daily charts. No trades in mind there. Gold was up $11 today but the XAU fell 1/3. ABX, GG and NEM were either flat or had small fractional moves on light volume. The dollar gained ground today and it didn't stop gold. Money is moving into gold and I have no reason for it. I suppose I will take a closer look at the gold shares over the weekend. Mentally I'm feeling OK. The summer has been anything but quiet so far. Unfortunately for me, I haven't been able to take advantage of it. The stock market wants to go higher. I think that will be the case going into expiration week. The usual inverse relationship between gold and the US dollar isn't happening right now. You would expect the dollar to have fallen today on such a weak jobs number. Didn't happen. I'm keeping an eye on things but I really don't have a very good feel or idea what is going on. For that reason, I've remained on the sidelines. I'll be looking at the charts over the weekend to try and find something worthwhile. But for now it's a Friday afternoon in the summer and time for a break.

It has been an amazing run with no end in sight as the Dow climbed 93 points on average volume. The advance/declines were 4 to 1 positive. I thought it would be a quiet session but that was not the case. The employment report is out tomorrow but there is no stopping this bull run for now. Overbought, staying there and the summation index continues to gap higher. Certainly would have been nice to have some calls at some point in the last 2 weeks. GE was up 1/4 on better volume as it tries to break through the 50 day moving average. We still have yet to rise above the resistance line that began back in February. I suppose GE isn't exactly a leader here. Gold was up a buck and the XAU gained 2 points. ABX was flat, GG gained 7/8 and NEM rose 3/8. Volume was average. The US dollar was weaker today. No trades in mind for the gold shares just yet. Mentally I'm feeling tired, did not sleep well or long enough. So we'll get the employment numbers tomorrow but I get the feeling they won't really matter. Not when you get a bull market thrust like the one we're in at the moment. But nothing I've been thinking of has been correct lately. We will have to wait for the stock indices reaction to the news. The Dow transports have already broken out to new yearly highs. Are other indices to follow? Seems to be what will happen at this point.

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.